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Lasse Fredborg
Partner, Deal Advisory
In a constantly evolving market, where the competitive landscape and underlying industry dynamics are continuously changing, it is more important than ever to engage specialised valuation advisers. BDO’s Valuation team is at the forefront of the latest trends, allowing us to quantify the impact of current market conditions on the value of your company. At BDO Corporate Finance, we regularly conduct independent business valuations for various purposes. A valuation can be relevant in a myriad of situations, not just in the event of an imminent sale of the company but also in other circumstances that require an assessment of the company’s market value. The scope of our valuation service will vary depending on the level of detail required, as well as the size and complexity of your business.
Our valuation services include, among other things:
- Business valuation in connection with M&As or capital raises
- Advice in relation to potential synergies, when acquiring a company
- Documentation in connection with generational transitions or intragroup transfers
- Advice in connection with pending lawsuits, including appraisals
- Fairness opinion – an assessment of whether the transaction terms are fair
- Advice in connection with the issuance of warrants or options.
The business valuation process – how do we estimate the value of your company?
First and foremost, our valuation is based on a thorough analysis of the company. We carefully analyse the business model, composition of customers and suppliers, market conditions, and relevant trends. Subsequently, we assess other company-specific topics in detail, such as its production capacity, quality of revenue sources, management matters, the competitive landscape, as well as other fundamental conditions that may have an impact on the company’s competitive strength and value. Based on this evaluation, we prepare an in-depth financial analysis, in combination with a review of buyers’ interest in the company, as these are of decisive importance for the output of our business valuation.
In our actual valuation of the company, we typically cover the following main areas:
- Any properties owned by the company are separated as part of our calculation
- Normalisation of earnings
- Valuation using the DCF-model
- Valuation using EV multiples, i.e., EV/EBITDA and EV/EBIT
- Valuation using the intrinsic value model.
Our market insight, and ongoing dialogue with investors, financial institutions, etc., enable us to stay at the forefront of the latest market trends. By employing different valuation models and comparing the estimated value with completed transactions in the same or closely related industries, we cross-check our valuation of the business.
The final product is presented in a report that explains our results, assumptions, and drivers behind the valuation.
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