There are occasions when a group of companies are valued on a consolidated basis as a faster alternative than a sum-of-the-parts business valuation. This begs the question: how does one treat the presence of non-controlling interests in the group? Before we get started, it is important to note that the non-controlling interest in a group
When using the income approach for a business valuation, the assumptions on which the free cash flow forecast or dividend of the business is calculated should make sense in terms of the business’s history. Let us look at which periods should be selected to display and use in the valuation. History tells a story about
When valuing a business there are a few approaches or methods that could be taken. Let’s have a look at those approaches and in which circumstances they would be most appropriate. There are generally three approaches: the market-, income- and cost approach. Market approach This method of business valuation applies certain
The rapid spread of the COVID-19 virus and the subsequent lockdown measures caused a hammering of an already weak economy. It is expected that it will take some time for the economy to recover, which will naturally impact on the risk appetite of businesses. But how will this play out in the mergers and acquisitions
It is a common error to regard the value of a business to be the same as the value of a company. This is also referred to as the enterprise value and equity value, respectively. So, are they not the same? Let’s dig deeper! Consider a company with different assets and
Is business value determined by skilled negotiators or is it an accurate and well-founded calculation performed by a skilled valuer? There are two schools of thought on the determination of the value of a business: Value is a function of negotiation in the marketplace versus the outcome of sophisticated calculations based on facts and statistics.
