Our focus & services
While the purchase price has a perceived order of magnitude, the actual value of a company is the result of a calculation process performed according to economic principles that determines the value as an approximation.
Knowing there is no objective company value, since this figure always depends on the interest of the assessing parties and the goal of the company valuation, a number of methods designed to approximate the value of a company have been developed in the field of business management, each putting an emphasis on different factors (German income approach, discounted cash flow method, tangible value method, combined systems, multiplier method, etc.)
Company valuation is in practice the prerogative of auditors, which is why the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) has adopted on 18 October 2005 a IDW standard on the principles for conducting company valuations, which has since become the gold standard for everyone dealing with this kind of procedure.
According to this norm, the value of a company is derived only from its capacity to generate financial surpluses for its owner or owners (present value of future profits).
The liquidation value of the enterprise only comes into consideration if it exceeds the value of future profits.
Thanks to our close collaboration with various auditing companies and the expertise of Wolfgang Leiss, graduate in business management and master of laws lawyer, we are able to assist you in company valuation matters as follows:
● Execution of company valuations in accordance with
the IDW standard
● Calculation of performance indicators and elaboration of
decision criteria for individual price limits
● Assistance during purchase price negotiations through
the provision of argument values
● Mediation in conflict situations regarding fair price determination