Valuation

Valuation M&A Corporate finance Restructuring Tax consulting Family succession

Determining the true value is crucial for your business decisions.

Understanding value and financial modeling are the first steps in making strategic and business decisions. We conduct valuations for various purposes: mergers and acquisitions (M&A), recapitalizations, accounting reporting, tax purposes, loan security, exits, and more. We operate as independent certified valuers authorized by the Slovenian Institute of Auditors. We provide comprehensive services with a 'one-stop-shop' approach. Contact our experts here.

Business Valuation Based on Valuation Hierarchy and IVS Standards

Indicative Business Valuation Opinion

Valuation of Real Estate, Machinery, Intangible Assets, Business Units

Fairness Opinion on Sale/Purchase Price

Assessment of Expected Synergistic Effects

Review of Valuation Reports per SPS 7

Opinion as Certified Valuer under ZFPPIPP per SPS 5

Credit Rating for Your Company

Business valuation in accordance with the valuation hierarchy and International Valuation Standards (IVS) follows a structured approach to determining a company's value. We are certified business valuators authorized by the Slovenian Institute of Auditors, offering comprehensive "one-stop" services.
Our valuations are conducted using various methodologies and serve multiple purposes, including:
• Sale or purchase of minority and majority stakes
• Strategic acquisitions
• Tax-related purposes
• Pledge of shares for banks or other financiers
• Financial reporting
• Exit and payout of shareholders
• Corporate restructuring, division, or other needs
We operate as independent, certified business valuators, ensuring objective and reliable assessments tailored to our clients' specific requirements.

An indicative valuation opinion is a concise valuation report prepared by a financial advisor. These opinions are commonly used for internal decision-making and in cases where compliance with International Valuation Standards (IVS) is not required.
The valuation opinion provides an indicative estimate of value, emphasizing key value drivers of the company. Its purpose is to offer a quick and clear insight into the company’s worth without an extensive report, enabling fast and informed business decisions.

As certified valuers, we assess various assets, such as real estate, intangibles (e.g., brand, software, patents), business units, and machinery. Comprehensive 'one-stop-shop' services are provided, adhering to IVS standards.

A fairness opinion assesses the fairness of a proposed sale or purchase price. Our service includes analyzing the offered price against objective company value, considering valuation methods, market conditions, and financial data. This independent evaluation supports informed decision-making in transactions.

A thorough assessment of expected synergy effects is crucial in mergers and acquisitions, as it helps determine the potential benefits of combining companies. We analyze all aspects of operations to identify where synergies can create the most value. This effect can be illustrated with the equation 1 + 1 = 3.
We develop strategies that enable the efficient utilization of shared resources and the optimization of operational processes. The main goal is to maximize the financial and strategic advantages of the merger. Additionally, we assess the risks associated with synergies to ensure sustainable growth and long-term success after the merger.

Following Slovenian SPS 7, we review valuation reports for compliance with IVS and other standards, ensuring accurate data and comprehensive analysis. This independent review provides additional assurance on valuations.

In accordance with SPS 5, we prepare opinions and reports related to insolvency procedures as outlined in ZFPPIPP, reviewing financial restructuring plans and providing statutory opinions.

A credit rating is vital for analyzing business and financial health. We provide an informative rating using various models, aiding in understanding your position for financing and preparing for future funding opportunities.

Get a professional valuation to make the right business decisions.

FAQ

What is business valuation and why is it important?

Business valuation is the process of determining the economic value of an entire business or its specific units (such as cash-generating units, intangible assets, etc.). It is crucial for decision-making related to sales, purchases, mergers, and acquisitions, as well as for securing financing, ownership distribution, or owner exits. We are authorized business valuators, accredited by the Slovenian Institute of Auditors. We offer comprehensive services following the "all-in-one" principle.

When do I need a business valuation?

You need it in various situations such as selling or buying a company, mergers, ownership distribution, entry of a new partner, tax and accounting reporting, securing financing, exit planning, corporate restructuring, and for strategic decisions regarding company growth. We perform valuations using different methods for various purposes.

What information do I need for a business valuation?

We provide a questionnaire for the client to complete, along with a list of required documents. Generally, you will need historical financial data (balance sheet, income statement, trial balance), business plans, market and competition information, and other relevant business data. We review all necessary points and documents together. Throughout the process, we maintain regular contact.

How long does a business valuation take?

The duration of the valuation depends on the complexity of the company, the scope of required and received information, and the method of valuation. Typically, the entire project from confirmation of cooperation to the final assessment takes a few weeks. The exact timeframe is individually agreed upon in the offer, considering your needs.

How can I increase the value of my business?

You can increase your business's value by improving financial performance, optimizing costs, increasing market share, expanding the customer base, ensuring continuous and stable sales, achieving higher margins, innovating, securing rights, maintaining competitive advantages, developing key competencies, demonstrating business scalability, and enhancing business processes and reporting systems. We review and analyze specific areas together to assess where there might be potential for increasing the business's value in the future.

Are there risks in business valuation?

Risks include incorrect financial data input, inaccurate projections of future cash flows, or improper use of valuation methods. It is crucial to work with competent and qualified professionals with experience in this field. At Targo Finance, we believe that determining the true and accurate value of a business is essential for your business decisions.

How does the value of a business differ from its price?

The value of a business is based on financial and strategic parameters that determine its economic worth. The price of a business is the agreed value between buyer and seller, which can be higher or lower than the valuation, depending on market conditions and the negotiating skills, motivations, and emotions of the parties, transaction structure, and other factors. At Targo Finance, we like to quote one of the greatest investors of all time. Mr. Warren Buffet says, "Price is what you pay, value is what you get." This means that price and value are not always the same.

What factors most influence the value of a business?

Some key factors include:

Financial performance (revenue, profit, cash flow)
Financial condition (debt, surplus assets, non-operating assets)
Market position and competitiveness
Growth and future potential
Condition of fixed assets, working capital, liabilities
Industry, sector, and economic conditions.

How are startups valued if they do not yet have stable revenue?

Startups are often evaluated using adapted methods such as assessing growth potential, innovation, market strategy, and team strength. Valuation is more subjective since revenue and profit are less predictable.

How often should entrepreneurs or business owners obtain a valuation of their business?

It is advisable for partners to regularly assess their business's value, especially before significant business decisions (sale, mergers, acquisitions, financing, exit planning, strategic decisions) or at least every few years to be prepared for unexpected opportunities or changes.

How is a company's future potential considered in its valuation?

Future potential is primarily considered in the discounted cash flow (DCF) method, which evaluates the company's future operations. A business projection is created by planning revenue, results, growth, investments, and working capital movements, among others. Risks associated with achieving these projections are also considered.

When is a shorter opinion on business value used?

Shorter opinions on value are often used for internal decisions and purposes where compliance with International Valuation Standards (IVS) is not required or where extensive reports are unnecessary. The opinion provides an indication of value with an emphasis on key value factors. The purpose is to offer a quick and clear insight into the business's value without a comprehensive report.