Company valuations

Company Valuations Service

The best support for any company valuation

What is company valuations?

Company valuation is a fundamental negotiation tool whether you are interested in selling your company or buying another. It is also increasingly used as a management tool to measure and improve shareholder value creation.

A good valuation report should include both the quantitative and qualitative arguments supporting the price defense. It is important that the valuation report is prepared by an entity of recognized prestige in the international market in order to be used as a reference by all parties.

Who does the valuation of a company?

Thanks to ongoing contact with high-growth markets, Baker Tilly's company valuations professionals are "dealmakers" specialists.

They rely on a valuation methodology that evaluates both qualitative and quantitative aspects and, once finalized, is compared with the most recent valuations in the industry to check its validity.

Our valuation experts are always up to date with the reality of transactions, therefore, they are able to discern whether the theoretical value obtained by applying the valuation methodsis in line with what the market is willing to offer.

There are different methods of company valuation, but Discounted Cash Flows is one of the most widely accepted.  It is a method of valuation that starts by projecting all future cash flows generated by the company's operations, and discounting them by the return demanded by investors.

When should a business be evaluated?

Primarily, the company valuation serves to support decision making in these situations:

In the face of any corporate transaction whether of the parent company or any portfolio investee:

In the case of a buyer, it will serve to establish the maximum price to be paid.
In the case of a seller, to identify the minimum price and to understand how much different buyers will be willing to pay.

To support those strategic decisions that are aimed at creating shareholder value, for example:

Strategic planning: the assessment of the different business units allows us to decide which products, business lines, geographies, markets, etc. to maintain, strengthen or reduce.
To manage the portfolio of investees and make decisions such as selling, merging, milking, buying, etc.
For the identification of the levers of value to identify and prioritise value drivers.
Design of a management compensation system based on the creation of value: for the purpose of aligning their objectives with those of the shareholders.

What kind of expertise does a business valuation require?

To value an organization properly, some technical knowledge of business valuation methods is necessary, but above all it is essential to have day-to-day experience in sale and purchase transactions.

This is crucial for the result to be close to market reality. In addition, the objectives of the valuation exercise must always be kept in mind, i.e., why and for whom the valuation is being done.

Why Baker Tilly Global Deal Advisory?

Whether you aim to sell all or part of your company, or are looking to buy another company, you need a professional with a global vision, who has ongoing contact with corporate transactions and is up to date with the latest valuation methods. That is why at Baker Tilly Global Deal Advisory we offer you the best valuation service:

Data Analytics for M&A

We continue to strengthen our existing competencies and aggressively invest in skills that enable our clients to make better transaction, capital attraction and operational optimization decisions.

As a result of our work with companies in high-growth sectors, we have acquired knowledge and experience in specific valuation methods such as:

The "Venture Capital Valuation Method" is appropriate for technology companies that are seeking an injection of capital. First, the VC must estimate the value of the company at the time of the future sale of the company. Next, the VC should consider what % stake the VC expects to hold at the time of the sale. In the third step the VC must determine his required return and finally, once the multiplier has been chosen, the multiplier required by the VC must be compared to the multiplier offered by the investment.

"How a Saas company is valued". One of the methods we use is known as Earnings-Multiple. In a public company, this tends to manifest as P/E, EV/EBITDA and EV/Sales multiples or other iterations of these core metrics. In the internet business world, investors have increasingly turned to the multiple-based methodology due to its simplicity in the face of limited financial or comparable data.

Market Research

Our Intelfin tool helps you understand and improve your strategy to identify the opportunities and risks hidden in your data. With rigorous models, you can make more accurate forecasts and better manage decisions.

Training & Methodology

Our market analysis capacity, from an investment point of view, allows us to provide a personalized vision of the company and its market.

This sectorial knowledge allows us to identify the variables that influence a better or worse valuation. We are able to consider both quantitative financial variables and other qualitative variables such as quality of revenues, talent, intellectual property, etc.

Baker Tilly International is among the Top10 ranked professional services firms in the world, especially focused on the Mid-market, offering a global reach with knowledge, local teams and extensive experience in high-growth sectors.

Know our method of selling companies

Know more

Fintech Analysis: Key valuation variables of 15 Fintech companies

Company Valuation
fintech, valuation of companies

ASSESSMENT OF JAPANESE NTT DATA

Company Valuation
corporate finance spain, global corporate finance, company valuation

VALUATION OF BRAZILIAN TOTVS

Company Valuation
corporate finance spain, global corporate finance, company valuation

VEEVA: ASSESSMENT OF THE LIFE SCIENCE LEADER

Company Valuation
corporate finance spain, global corporate finance, company valuation

Discover How to ...

Market Research Technology

Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.

Technology Data Analytics
for M&A

Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?

Training Methodology

We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Company valuations