"The True Value of a Company"
Valuator Consulting is a Croatia-based company specialized in valuing private & public companies. Valuation of a business is important in transactions of purchase, sale, or merger (M&A) of a company when it is necessary to engage a third party, and independent party who will objectively assess the true value of the company in question. Valuator Consulting with it's knowledge, experience, and application of various financial valuation methods leads to the real - intrinsic value of the company.
70-90% OF ALL ACQUISITIONS FAIL
WHEN IS VALUATION NEEDED?
Business purchase
Business sale
M&A transactions
Services
Valuator - a person who assesses the true value of a particular asset
Our team consists of financial analysts, investment advisors, and certified financial experts with over 15 years of experience in the domestic and international financial sectors. We use various valuation methods to reach the true value of the company. After the assessment, the valuation team also makes suggestions for increasing the value of the company. When assessing the value of a company, we adhere to international IPEV guidelines.
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Valuation methods used
Discounted cash flow (DCF)
With this method, we come to what is called the “intrinsic value” of the company. This method projects the company's cash flows because the real - intrinsic value of the company is the present value of future cash flows. Future cash flows are discounted to present value at a rate that represents the investor's required return. To project cash flow it is necessary to make projections of P&L and balance sheet.
Trading multiples
This method requires the relative values of companies listed on stock exchanges, that are from the same industry as the observed company. Relative values refer to multipliers such as EV/Sales, EV/EBITDA, PB ratio, PE ratio, price-earnings per share ratio, etc. The average or median values of these multipliers calculated for similar listed companies are then multiplied by the company's valuation indicators.
Transaction multiples
This method also looks for the relative values of companies, i.e. looks at the multipliers by which M&A transactions were recently executed in the industry of the observed company. Similar to trade multipliers, it is a method that looks for the relative values of companies. In particular, we are interested in which revenue multipliers, EBITDA, etc. were used for takeover transactions in the industry of the observed company.
HOW DOES IT WORK?
A simple 3 step process:
- Initial meeting – we get to know your goals
- Data collection and analysis
- Final reporting
At the initial meeting, you get to know our team, which collects the first data needed for the assessment. The process of collecting all the data needed for the assessment follows. The duration of this part depends on the complexity of the project. The final phase is the preparation of the valuation report and its presentation. With the final report, you learn the true (intrinsic) value of the company, and how to increase its value.
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