EVALUATION
Michel Partner's "Valuation" teams of financial analysts and sector experts guarantee perfect knowledge of the valuation methods applied in your business sector.
Our company valuation reports, and the various parameters taken into account in our studies, are systematically justified and detailed. In particular, they refer to the most recent comparable transactions.
YOUR NEEDS :
- Assess the financial value of your company in the context of a sale to a buyer
- Valuation of your shares or holdings in companies as part of a gift to your children
- Appraise an asset to be contributed as part of a share capital increase
- Valuation of your shares in the event of a separation between partners or a divorce
- Valuing your financial loss in the event of an injury
OUR ANSWERS :
Preamble : The aim of a business valuation is not to determine the unique value of a company, as this does not exist. Our business valuation experts must therefore construct a range of values, identifying minimum and maximum values.
The fact remains, however, that the valuation of a company follows a rigorous process based on a formalism, more or less complex depending on the size of the company, its organization and, of course, its sector of activity.
In a few words :
- A team of financial analysts led by a sector expert
- A rigorous approach in line with AFITE (Association pour le Financement et la Transmission d'Entreprise) standards
FINANCIAL DIAGNOSIS OF THE COMPANY
Prior to any financial analysis, MP's Evaluation draws up a diagnosis of the company, focusing in particular on its capital structure, organization, business model, product and service offering, clientele, dependence on third parties or key personnel, etc. This study enables us to situate the company in relation to its competitors, and to assess its financial situation. This study makes it possible to situate the company in its market, to identify its attractiveness to potential buyers, and to determine the appropriate valuation slider (high, median or low value).
Analysis of the company's position in its market, its short- and medium-term development potential and its environment (economic, technological, regulatory) then enables us to refine our diagnosis of the company. Above all, this diagnosis serves to understand the company's business model from a strategic and financial point of view. Strategic analysis enables us to take a look at the company's competitive situation, the opportunities offered on its market and to characterize its strengths and weaknesses.
In a nutshell :
- Gather structural, financial, legal and tax information on the company
- Analysis of the company's market and positioning
- Highlighting of strengths and weaknesses
COMPANY FINANCIAL ANALYSIS :
Based on the company's financial statements for the last four years and projected results for the current year, we analyze the company's performance and, with the assistance of the company's management, draw up a business plan. Based on the detailed operating accounts, we then define the company's "normative result", i.e. the result obtained under normal operating conditions, excluding exceptional items such as non-recurring expenses or management remuneration.
The company's balance sheet structure is also taken into account, with its assets (brands, goodwill, real estate, shareholdings), liabilities (shareholders' equity, financial debts, off-balance sheet commitments) and net cash position taken into account to estimate the company's value. MP's business valuation expert then uses a valuation matrix adapted to the company and its business sector.
In a nutshell :
- Determination of a "normative result" excluding exceptional items
- Analysis of the company's historical balance sheets
- Drawing up a projected budget for the current year
- A valuation matrix specific to the company's sector of activity
COMPANY VALUATION SUMMARY
Michel & Partner's Evaluation uses business valuation methods appropriate to the context of the valuation and recognized by the main players in the sector: transactional and stock market multiples, discounted cash flows, asset-based approaches, etc. The analysis of our business valuation experts is based in particular on the latest transactions carried out in your sector of activity and recorded in our internal and external databases.
The sector expert then defines an objective price range, adapted both to the context of the transaction (partial or total sale, shareholder arbitrage, family transfer) and to the market (supply and demand, outlook, competition). MP's Evaluation presents a detailed business valuation report. Over and above the values determined, it highlights the company's assets, any obstacles to its transfer, and recommends a list of actions to be taken in order to optimize its value within the framework of a company transfer project.
In a nutshell :
- Valuation using methods appropriate to the sector
- Determination of a price range, justified in terms of recent transactions in the sector
- Presentation of a final valuation report and recommendations for optimizing value