Valuation

One of the challenges in a company transaction is indeed finding the purchase price. In order not to overload the process with avoidable uncertainty on the purchase price, it is important gaining knowledge of a fair range of the company’s value.

Certainly, the final price also reflects individual circumstances, such as strategy, knowhow or subjective synergies. Independent from that however, it is crucial to get an understanding of the unbiased enterprise value according to generally accepted valuation principles, be it by the DCF-method or the more simple, but still broadly applied in transaction cases, the multiple method.

In addition, ways need to be identified to address future cashflow-uncertainties, which otherwise may be subject to disputes between seller and buyer.

Further on, subsequent to a succeeded transaction for purposes of financial statement consolidation, the buyer has to allocate the compensation paid for the shares of the company to the actual assets and liabilities received. Such a purchase price allocation (PPA) is mainly made up by the valuation of intangible assets (e.g. trademark, customer relationships or technology) according to professional valuation standards. Further common price allocation elements relate to hidden reserves within property, plant & equipment or inventory. As a result, GW is determined

Auren supports you  in the various valuation-related aspects, such as:

  • Enterprise valuation
  • Managing future cashflow-uncertainties in a transaction
  • Purchase price allocation (PPA)
  • Valuation of individual intangible assets

To learn more about our valuation services, feel free to contact one of our consultants:

Thilo Krohn
Certified Public Auditor (Germany)
Certified Tax Advisor (Germany)
+49 711 997868-40
thilo.krohn@str-auren.de

Lothar Schulz
Certified Public Auditor (Germany)
Certified Tax Advisor (Germany)
+49 711 997868-13
lothar.schulz@str-auren.de