A crucial factor affecting the success of a corporate transaction is the process of negotiating a purchase or selling price that is acceptable to both buyers (Unternehmenskauf) and sellers (Unternehmensverkauf).
Although it’s only normal for sellers and buyers to feel differently about the value of a company or the acquisition price, both must still establish a common basis for negotiation. When expectations differ regarding prices, a fundamental prerequisite for the successful conclusion of a transaction will be a detailed and thorough company valuation. Valuations also play an important role in arguing your case during contract negotiations.
We provide clients with supporting evidence to substantiate their argument in the form of a comprehensive company valuation (Unternehmensbewertung).
The German Chamber of Auditors (WPK) also provides extensive guidance on the professional calculation of enterprise value. FINANCE, the specialist magazine from Germany, offers a simple online calculator but this provides nothing more than an initial indication of company value. While we’re on the topic, our magazine article provides a comprehensive overview of the different methods used to conduct a company valuation.
