Proper valuation of companies
Valuation of companies is internationally standardised and follows regulated statutes. In German speaking countries, the evaluation standard of the “Institute of Chartered Accountants” (IDW) is used under certain circumstances. Its principles for corporate valuations (IDW S1) are used among others in the context of legal disputes or succession regulations.
The S1 standard is rarely used for determining market prices or the value of company stakes. Instead, subjective values from the perspective of the seller considering individual objectives and opportunities are being discussed, using the well-established discounted cash flow method.
According to IDW S1, the company value is determined by surpluses generated by continued businesses as well as from divestment of non-operating assets. Such analysis is frequently used in expert opinions in German-speaking countries.
PJSC’ M&A practice brings years of expertise to properly value corporations. Individually analysed and taking into account our experts’ industry-specific knowledge, our clients – supported by our experts – will get a clear view regarding the value of their company.
To guarantee a holistic consulting approach, we will also support in executing divestments, acquisitions, financing and special tasks such as the use of government subsidies.
