Business valuation services by BrightOrange
At BrightOrange, we use the latest techniques and methods to determine the value of your business. Our partners and consultants have years of experience in business valuation and have access to all relevant databases. What sets our approach apart is our personalized approach. We take the time to get to know you and your business so that we can provide you with good advice and guidance. Even after the business valuation, we are happy to help you further in the process. For example, if you want to buy or sell a business, deal with judicial procedures or seek advice on strategic choices for your business.Read more about our approach
When is a business valuation important?
A business valuation is important in various situations, such as selling or acquiring a business, (shareholder) disputes, tax matters, and the financial consequences of a growth strategy. We are also increasingly called upon to provide an independent, professional opinion on economic value in claim-sensitive situations. This includes damage claims for breach of contract, (tax) restructurings, pre-pack prior to bankruptcy, and financial reporting.
What is my business worth?
Every business is unique, and every situation is different. That’s why we carefully consider which method is most suitable for calculating the value of your business. This ranges from a QuickScan to an advanced valuation based on Monte Carlo simulations. We have access to international databases and valuation resources, so we can perform every valuation professionally. Some examples include Mergermarket and Epsilon for transaction information, the international Kroll and Infront Analytics for data on publicly traded companies.
BrightOrange Valuation Specializations
Difference between value and price
It is important to note the difference between business value and the sale/purchase price. Business value is subjective and depends on who is looking at the business. The outcome, therefore, varies per valuer. The sale price is the result of the negotiation over that value between the buyer and the seller. To make the valuation as reliable as possible, it is crucial that your advisor is genuinely interested in the rationale of the counterparty and does not just focus on your business.
Approach of BrightOrange
In the initial consultation, we get a good understanding of your company and situation to determine the appropriate valuation strategy.
Financial data submission
To perform an accurate valuation, we request financial data from you, such as the annual reports from the past years. We treat this data with the utmost confidentiality.
When determining the company’s value, we don’t just consider the past but also focus on the future. Therefore, it’s important to prepare a forecast for the next 3 to 5 years, especially for the income statement and balance sheet. We offer help and advice in this process.
Next, our professionals begin the valuation process using the most appropriate valuation method, such as the Discounted Cash Flow method. We then prepare a draft report, which we discuss with you.
Final valuation report
Based on the discussion, we finalize the report and provide you with the company’s valuation.
You can use the valuation report in various situations. Depending on your circumstances and needs, we can guide you further, such as in the sale of your company, legal procedures, or mediation.
Frequently asked questions about business valuation
What is the value of a company?
The value of a company is its economic worth, expressed in euros. The company’s value often differs from the sale price as the sale price is determined through negotiation between the seller and the buyer.
How do you determine the value of a company?
There is no simple formula to calculate a company’s value. Several factors are essential, but it can be summarized into three elements: time, money, and risk. We look at future cash flows, the expected timing of these cash flows, and the risks associated with them. We typically use a Discounted Cash Flow (DCF) method for calculations.
Why does the value differ from valuer to valuer?
The value of a company can’t be precisely determined. This is because business valuation doesn’t just consider historical data (facts) but also future expectations and risks of the company. For example, will a new product be successful, and can the management achieve growth? Each valuation expert will have different expectations, making the value subjective by definition.
What should you consider when choosing a valuation expert?
To make the valuation as reliable as possible, it’s crucial that your advisor has a genuine interest in your company. During a sales process or dispute, it’s also essential that the advisor understands the counterparty and the reasoning behind their valuation. Your advisor should understand the arguments and have valid alternatives.
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