Company Valuation

‘Company valuation’ is one of the most sought after concepts in valuation. The fact that there are many discussions around this topic is also due to the scientifically of the subject. Our firm valuation expert gives us the details of the subject in a short and concise article.

The question should start with why company valuation is done:

• For the acquisition or disposal of a company, mergers or estimation of shareholders’ capital value in the company,
• To estimate the value reached by the initiative,
• For the preliminary preparation for the goal of going public in the future,
• Since it is a holistic study, it has the quality of a “check-up” for the firm,
• “A well managed company has growth potential.”
• To ensure management performance with periodic value determination, “As the company performance increases, informal investors or professional investors can knock on your door.” Avoiding being sold for cheap,
• Avoiding being sold for cheap,
• To facilitate the decision-making of the parties in cases of partnership or withdrawal from the company,
• To provide financial institutions with additional information about the firms they lend to

Company Valuation Process

Firm valuation processes consist of several stages. Just as there are criteria that determine these stages legally, there are also criteria determined by different specialties in the professional service sector. For example, the processes followed during the valuation of a firm under CMB (Capital Market Board) are different for firms outside of CMB.

Among the criteria determined in different areas of expertise, the machinery, equipment, vehicles, buildings, and real estate of the firm should also be determined by professional institutions and organizations.
 

• Transactions within the scope of Real Estate Valuation

Valuation if requires correction

(*) If the difference between the book value of the assets -land, building, machine-, and market value is high.

(*) Service is received from CMB Licensed Real Estate Valuation Firm.

• Financial Studies

The data obtained as a result of these studies both facilitates management and allows strategic planning. From this point of view, firm valuation studies become a short-term consultant of the company with its impartiality and independence.

The titles shown below include the general titles included in the firm valuation report:

Financial Analysis and Company Valuation Report

1. Company Valuation service information
2. Profile of the company that Company Valuation is performed
3. Activity Information of The Company
4. Management quality and corporate management practices
5. Financial Control and Reporting
6. Analysis of economy, sector and region
7. Summary financial statements (adjusted)
8. Financial analysis
9. Risk analysis
10. Assessment (Rating)
11. Valuation approaches methodology
12. Value analyzes
13. Conclusion and valuation:

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