Business and asset valuation

Valuation of a company, businesses and assets usually takes place in connection with sales processes, transformation, as well as tax optimization. This process requires an individual approach depending on the type of business the company is engaged in. The purpose of such a valuation is also a key issue. These may include aforementioned situations related to the sale of a company or its transformation. The company valuation process may also be necessary for reasons such as:

• company liquidation,
• legal proceedings,
• company acquisition.

Regardless of the circumstances surrounding the valuation of the company, it is worthwhile to entrustthis task to professionals, ensuring that the entire procedure proceeds professionally and with full support at every stage.

The importance of company valuation

Why is it so important to estimate the value of the company? Because this process benefits not only the company, but also, for example: investors, counterparties or state authorities (such as the Central Statistical Office or the Tax Office). The economy is very complex and undergoes numerous changes at a rapid pace, therefore recognizing them and adapting the company to the ongoing transformations is a critical issue for the company’s operation. Valuation is therefore both economically and strategically important – a company that is aware of its own value and individual assets is more credible. Taking various factors into account (including social, economic and demographic), by undergoing an equity valuation process, a company can also estimate its ability to generate profits.

Company valuation – what you should know?

The GLC team of experts supports clients at every stage of the company’s operation. We will not only assist with the valuation of the business, but also provide comprehensive and professional knowledge regarding the overall functioning and management of the company – including accounting, HR and payroll. Our clients also receive expert legal assistance, tax support and accounting services.

We have extensive in verifying the actual value of a company using the income, asset, and comparative methods. We adapt each method to the type and needs of the company, ensuring that the entire process proceeds smoothly.

What do we do?

• we verify the assets of the company (asset approach method) – this involves calculating the value of the company on the basis of foreign assets and liabilities, relying on financial statements, adjusting assets or reducing assets by foreign liabilities,
• we examine the company’s ability to generate profit (income approach method) – this is based mainly on net profits, dividends, financial surpluses and free cash flows, which are added up as the company’s future income streams and on this basis determine the company’s income value, 
• we verify by comparing against competitors (comparative approach method) – in this method, a given company is compared to a company with a similar profile, the same industry or similar sales volume; other comparative factors are also similar size and operation in the same market, 
• we verify and value trademarks, 
• we verify and value receivable packages, 
• we prepare asset impairment tests, including the company’s value.