Jörg Reimer
Steuerberatungsgesellschaft mbH
Heißbergstrasse 20
52066 Aachen

Telefon: +49 241 16057-0
Telefax: +49 241 16057-50

E-Mail: info@joergreimer.de

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Technical and vocational skills » Business Valuation

What is the value you calculated for your business?

The value of a company does not just include buildings, machinery and its banknotes. Valuable to a company are the people who work for it, and the spirit in which they do so.

Subject of the corporate assessment is the determination of the value of all shares of individual companies. It is an basic part of corporate finance.

The specificity of each company valuation arises regularly from the fact that companies often represent a complex structure. There are numerous business management disciplines, which must be recorded and mapped properly within the scope of each company valuation and ultimately compacted into a single monetary value.
In particular, aspects of investment-, capital markets- and decision theory have to be taken into account.

In addition, company valuations are influenced by strategic business planning, accounting, and last but not least by tax considerations.
While in the beginning company valuations exclusively served as a measure for the determination of purchase or selling prices, over the years constantly new situations of evaluation arise.
They are now carried out especially for the purpose of value-based management (shareholder value) and also in the context of (international) accounting (HGB, IFRS, U.S. GAAP). The following shows some examples of importance:

  • "normal" purchase or sale of a business or a business unit 
  • Initial Public Offering (IPO) 
  • retirement of a partner from a partnership
  • Identification of exchange ratios in the context of coalescing (mergers) 
  • Squeeze-out (§ § 327a et seq) 
  • Expropriation (Article 14 (3) GG).

All these events lead to a change in ownership.
Dominated and not dominated transactions can be distinguished.
In a dominated transaction the ownership structure is changed against the will of one of the parties involved.
This would be the case f. e. with an expropriation or the removal of an unpopular partner from a partnership.

Recently events without a change in ownership occurred on more often. Here it is not possible that a dominated or not dominated situation occurs. Examples mentioned:

  • credit rating analysis 
  • Assessment as part of an inheritance dispute 
  • assessments for the purpose of financial reporting (IAS 36 and § 253 HGB)
  • reviews to determine tax bases 
  • assessments within the value-based management (shareholder value). 

Kontakt:

Jörg Reimer
Steuerberatungs GmbH
Heißbergstrasse 20
52066 Aachen

Telefon: +49 241 16057-0
Telefax: +49 241 16057-50

info@joergreimer.de
www.joergreimer.de