During any transaction - an acquisition, disposal, merger or a stock exchange listing - the following questions often arise: What is the fair value? What maximum price should be paid? What should the reserve price be?
At the beginning of a transaction, negotiating parties very seldom share the same views on prices. When setting the price, it is crucial to be clear on which factors actually impact on value and the degree to which they influence it.
A future analysis of the object to be valued is the basis of any (business) valuation. The scope of the analysis depends on the reason for the valuation and the operating conditions, such as access to information and time.
Alongside the financial indicators and positioning within the competitive environment, identifying potential synergies can play a very significant role. As every value-related factor is immediately visible, our specialists have the right valuation methods for assets that don't appear on the balance sheet such as brands and technologies.
Companies are also confronted with company and tax law issues in their day-to-day business - issues which require them to determine their asset value. Examples include minority squeeze-outs, delistings or changing the business structure for tax reasons. A particular challenge, and when determining the transaction value, is the substantive and methodological legislative requirements.
PwC's experts support businesses worldwide as advisors, neutral experts or arbitrators with up-to-date interdisciplinary expert knowledge around all issues of asset value. Alongside classical cash-value-oriented processes (revenue/discounted cash flow) and the capital market-oriented approach (multipliers), special decision-oriented methods can also be employed such as the real option or share option valuation approach.
PwC delivers individual solutions and points out room for manoeuvre when making further decisions: In this way, the business value is no longer a black box and businesses are provided with a sound and appropriate basis for decision making.
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Partner, Deals Leader Germany
Tel: +49 69 9585-1297