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Why Carry Out a Share Valuation Exercise? Without
a proper Share Valuation exercise, it is difficult to ascertain if you are
getting a fair price for a business. As a seller, you would need
to work out the kind of price to ask for and justify it. If you were
the buyer or investor, you would need to be sure that you're not over-paying. How To
Value Company Shares Commonly
used valuation methods are :
- Price earnings multiple
- Price revenue multiple
- Discounted cash flow
- Net tangible assets
The relevance of each method depends on the
type of business, stage of development and financial state of the business
in question. Key factors considered in the valuation exercise are
historical and projected revenue and profits, intangible assets such as
intellectual properties and strength of management, and recent prices of
benchmark companies.
How A&L Can Assist
We will select the most appropriate valuation
method, compute the share value and prepare a report that will help to convince the
audience that the proposed value is justifiable and credible. We can also :
- advise you on the size of stake to offer,
ways to protect your interests and rights, and other terms and condition
pertaining to the sale or acquisition of shares ; and
- help you to negotiate with the interested
investor or investee and structure the deal.
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