Services

A valuation gives you insight into your company’s market value and compares it with other companies traded within the same industry. This knowledge helps you focus on the parameters that can enhance your company’s value and target strategies and growth plans.

There are various recognized methods for valuing companies. Our valuation primarily consists of the recognized method Discounted Cash Flow (“DCF”) and secondarily compares with actual completed transactions of companies. DCF is recommended, among others, by McKinsey & Company, SKAT, and more.

The structure of the report is based on SKAT’s recommendations and guidelines. As part of the documentation, transparency in calculations is included, so the structure of the expected cash flow and all other parameters are clearly outlined.

Comparisons are made with actual completed transactions using EBITDA (earnings before interest, taxes, depreciation, and amortization) multiples, which are drawn from the world’s largest corporate finance database. The multiple is compared with the calculated multiple in the valuation. Any discrepancies between the two multiples are explained. There are typically discrepancies due to individual circumstances in the company, compared to the industry average.

A valuation of your company helps you focus on “Where are we today?” and also highlights the parameters that can enhance your company’s value, as well as target strategies and growth plans, thereby answering “Where do we want to go?”.

A growth plan contains the answer to how we get there and ensures that the growth plan is operational with concrete actions. It typically includes the idea and objectives, markets, analysis, strategy and execution, as well as economy and financing. We can, in collaboration with the management, develop a detailed growth plan including budgets.

• Company and Market: Analyze the company and its market environment.
• Capital Needs/Time Horizon: Assess the capital requirements and the time frame for achieving financial goals.
• Collaboration Agreement: Establish a collaboration agreement.
• Valuation, Accounts and Budget: Conduct valuation, prepare financial statements, and create a budget.
• Business Plan, Articles of Association, Board, Contracts, etc.: Develop a business plan, articles of association, form a board, and draft necessary contracts.
• Due Diligence: Perform due diligence.
• Capital Structure and Offering Form: Define the capital structure and form of offering.
• Investment Memorandum: Prepare the investment memorandum.
• Investor Identification: Identify potential investors.
• Marketing Plan: Create a marketing plan.
• Investor Meetings: Conduct meetings with investors.
• Marketing and Process Management: Manage the marketing process and ensure its effectiveness.
• Capital Infusion: Secure capital infusion.

When a company is preparing to raise capital for growth, or if the company is to be sold, an investment memorandum must be prepared so that potential investors or buyers can get an accurate picture of the company.

The content will typically include:

• Introductory text about the purpose
• Description of the market
• Description of the potential
• Description of the historical development
• Description of the organization
• Financial data including budgets
• Description of risks

We can, in collaboration with the management, ensure the preparation of a correct investment memorandum that complies with all regulations and formalities.

We specialize in selling companies with a value of DKK 10-150,000,000 and upwards, for example in connection with generational change.

The entire process consists of 4 periods:

• Clarification
• Start-up
• Offering
• Closing