Capital Tax understands how complicated it can be to properly value a company for sale or purchase. We assist both buyers and sellers with corporate valuations to help sellers determine a realistic price for their company and to ensure buyers that the price they pay to acquire a business is reasonable.
Valuation of Established Companies
The primary approach to valuation used by Capital Tax in the valuation of established companies is the discounted cash flow approach. This method has been in existence since the 1930s and is a widely accepted approach to corporate valuations.
The discounted cash flow approach considers anticipated future cash flows and discounts them to achieve a present value for an investment thus the time value of money and the risk premium is taken into consideration in setting the selling price of a business.
Valuation of Start-Up Companies
At times it may be necessary to value a start-up company in order to attract and negotiate with potential investors or to plan for the company’s future. Placing a value on a start-up company is more complex that valuations of established companies because there is a limited operating history so revenues and profitability are based on projections.
Capital Tax takes a comprehensive approach to start-up valuations which involves substantiating projections, formulating anticipated future cash flows and using the discounted cash flow approach to determine a present value of the company.
Whether you are a seller or a potential buyer, you can count on Capital Tax to present a corporate valuation that is based on logical, proven statistical analyses to produce a realistic present value for either established or start-up companies.
Contact us today at 03-4530-9755 to initiate the process of corporate evaluations that will assist you in making informed decisions regarding the buying, selling or investing.