Motivation for a business sale The motivation for a company sale or the sale of a business operation can be different. Strategic reasons come into question. If you determine that a business unit does not fit strategically with your company’s target orientation, you can dispose of this business unit. It is possible that this business …
The specifics of brand and trademark valuation are defined in the ISD S5 standard. The aim is to determine how great the added value for a company is due to the strength of the brand. Brand strength is derived from the sum of all effects that the brand triggers in customers, suppliers and employees (attractiveness, …
Patents, protected trademarks and protected designs are protected intellectual property that has an intangible value. In order to determine the intangible asset value of this intellectual property, it is first necessary to identify which patents, trademarks and designs exist at all, which of them are protected and how effectively they are . Then one looks …
Intellectual property has a value. This value can be calculated using the same procedure as the and specifically by the .
The procedure for calculating the liquidation value of discontinued operations corresponds to the value of all assets at market prices less expenses for marketing. Assets primarily include machinery and equipment, inventories, but also intangible assets such as patents, contracts and other rights, as well as investments and real estate. If the business employs staff, the …
The net asset value method is hardly ever used for the valuation of operating companies, except as a basis for determining the of a company whose business operations are not to be continued. The reason why the net asset value method is not relevant for “living” companies is that no assets essential to operations can …
The multiplier method is used for company valuation because it is very simple. According to the multiplier method, the company value is calculated from the EBIT multiplied by a factor. This factor (the multiple) is an empirical value that depends on the industry and the size of the company. You can find ranges for such …
The discounted cash flow method approaches business valuation from a different angle. The method is based on the cash flows of the company to be valued that can be distributed to the shareholders. The distributable cash flows must be discounted in exactly the same way as in the . The is derived from the base …
How high is the capitalized earnings value of the company under consideration? The capitalized earnings value corresponds to the sum of the individually calculated, and the discounted . Example: In the previous example, the capitalized earnings value of the company under consideration is EUR 379 thousand + EUR 321 thousand, i.e. EUR 700 thousand. The …
What is the perpetual annuity? Because it is not possible to plan each fiscal year individually in the more distant future, the first three to five years are planned realistically in detail and a so-called “perpetual annuity” is applied as a lump sum for the period thereafter, which is derived conclusively from the planning. This …