Company valuation with M&A Point
Comprehensive company valuation
Definition of a strategy for the sale or purchase of a company
Management of the entire transaction
Milan Dembowski
Martin Kulda
Ladislav Malina
Robert Med
Tel.: 602 553 623
E-mail: robert_med@kb.cz
Regions: Ústí nad Labem, Liberec, Kolín
A common reason is a change in ownership, whether due to the sale or purchase of a company, merger, division of a company, or the entry of new owners who may make non-monetary contributions (e.g. the market value of a business or company).
Company valuations are sometimes required by banks, insurance companies, or creditors when providing financing, loans, guarantees, and insurance. It is important for assessing the financial health of the company, cash flow, and collateral value. By valuing your company, you can also define appropriate insurance limits to cover key assets and operations.
Company value is also determined for financial statements. This is typically done to revalue assets and liabilities, but also to determine the fair value in accordance with Czech legislation (initial and subsequent valuation of long-term items, including consideration of the present value).
Entering capital markets (the stock exchange) or issuing an initial public or private offering also requires a company valuation. This is the only way to set subscription prices, value shares or stakes, and approach investors.
In the event of bankruptcy or liquidation, the company’s assets are valued so that they can be sold as profitably as possible and creditors receive an appropriate share. Methods are used that take into account forced sale and current market conditions. When a company is trying to recover financially, a company valuation helps to decide what to restructure, what to sell, and how to adjust the capital structure.
In the event of inheritance or settlement of community property, valuation is used for the fair distribution of assets – usually at prices defined by law.