Business valuations are considered part art and part science. The “science” element refers to the valuation theory which has been developed and refined by academics and corporate finance professionals over decades of research into the pricing of business interests. The challenge lies in the “art”. This calls for professional judgement on numerous subjective issues. Getting it wrong can be an extremely costly mistake, whether you are a buyer, a seller or a litigant.
We pride ourselves on performing valuations which appropriately take into account the attributes of the business being valued, rather than simply applying rule of thumb approaches which tend to overvalue weak businesses and undervalue strong businesses.
Business valuations can be required for numerous purposes, including:
Our directors have collectively performed hundreds of valuations on companies ranging from privately-held micro businesses to top 100 JSE listed companies.
We have performed business valuations in almost every sector of the South African economy.
To be an expert in the field of business valuation a practitioner needs not only a thorough knowledge of valuation theory and how to apply it in the real world, but also extensive experience in performing valuations that have been validated by actual transactions and which have withstood scrutiny of not only the parties to a transaction, but also the Courts in the case of litigation.
Our valuations have stood up to the scrutiny of local and international courts, the Johannesburg Stock Exchange and other regulatory bodies, as well as the review of our peers, including the Big 4 audit firms and large merchant banks.