Business Valuation

We estimate the economic value of businesses and business divisions, identifying value-creating and value-destroying segments.

Potential value is the amount of economic benefit that a business can generate in the future, based on its current performance, growth prospects, competitive advantages, and market opportunities. Knowing the potential value of a business is important for several reasons:

• It helps owners and managers to make informed decisions about investing, divesting, or acquiring businesses.
• It enables shareholders and investors to assess the return on their capital and the risk of their investments.
• It facilitates mergers and acquisitions, as it provides a common basis for negotiating the price and terms of the deal.
• It supports litigation and dispute resolution, as it provides an objective and credible measure of damages or losses.
• It enhances corporate governance and transparency, as it reveals the sources and drivers of value creation and destruction.

Therefore, our corporate value consulting services aim to help you estimate and communicate the potential value of your business, using rigorous and reliable methods and tools.

Strategic Planning

Our strategic planning services align with your shareholder value expectations. We work with management and the board to develop comprehensive business plans, identify key performance indicators, benchmark value drivers, evaluate capital allocation efficiency, and align incentives with shareholder interests.

Strategic Alignment

We help you align your strategic objectives with the expectations of your shareholders, ensuring that your business creates and sustains long-term value. We work with you to define and communicate your value proposition, vision, mission, and goals, as well as to identify and manage the key risks and opportunities that may affect your performance. We also assist you in developing and implementing effective governance and stakeholder engagement practises.

Cost of Capital

Cost of capital is a key factor in determining the value of any business, as it reflects the opportunity cost of investing in a specific project or asset. The cost of capital can vary depending on the risk profile, capital structure, industry, and market conditions of the business. Therefore, it is essential to use an appropriate method and data source to estimate the cost of capital that reflects the specific characteristics of the business and its operating environment.

We have extensive experience in providing cost of capital advice for various purposes, such as business valuations, financial modelling, capital budgeting, and strategic decision making. We use robust and reliable methodologies and data sources, such as the capital asset pricing model (CAPM), the weighted average cost of capital (WACC), to estimate the cost of equity, debt, and overall capital for different businesses and industries. We also apply relevant adjustments and benchmarks, such as country risk premiums, size premiums, and industry betas, to account for the differences in risk and return across markets and sectors.

By providing informed advice on the appropriate cost of capital for your business, we help you to make sound financial decisions that support your business objectives and maximise your shareholder value.

SHAREHOLDER VALUE IS AT THE HEART OF WHAT WE DO