JCinus provides the most professional company valuation service.
We are conducting various types of business valuation in many fields. We can provide the most suitable analysis and report for your valuation purpose.
Company Valuation Methodology
You cannot evaluate the price if you don’t know the value.
Company valuation is the process of estimating a company’s profits and determining its value. You can judge the adequacy of the price level formed in the market through it.
Valuation methodologies vary, but the two are most used in practice. One is the discounted cash flow (DCF) method, and the other is the relative valuation method. DCF is a method of estimating value by forecasting the cash flow that a target company would generate in the future. Therefore, the valuer should be able to count them by closely analysing the business and the environments surrounding it.
The relative valuation is the way of estimating the value by referring to companies’ market prices similar to the target company. Therefore, the valuer should be able to closely analyse the company’s business and find a peer group that can be compared with the target company.
JCinus has accumulated profound expertise in finance and many valuation experiences. Based on these, We can perform an excellent valuation tailored to your purpose.
There are the buy-side and the sell-side in M&A deals. Valuation is essential for both, but it could become more critical to the buy-side if the market overflows with capital. That is because the asset prices could rise when money is more than the assets to be invested in.
A buy-side performs valuation to determine the fair value of the target company. In here, the final deal price may be different depending on the type of sale. In the case of a tender offer, the deal price is decided by the auction method. Then, there is a risk of the price increase if the competition atmosphere overheats. In a private sale, a buy-side would negotiate with a sell-side for the deal value. Valuation is then a vital strategy to prepare for it.
A sell-side conducts valuation to estimate the desired price of the company to sell. In the case of a public sale, valuation serves as a guideline by presenting the initial reference price. In a private sale, sell-side would have bargaining power against buy-side with robust logics based on the valuation.
Valuation for raising equity capital
Raising equity capital is essential for the growth of companies. Venture firms raise funds from venture capital. Private companies access the capital market during the IPO for the first time and raise equity capital. Listed companies could issue follow-on stocks to attract more money.
On the opposite side, investors can measure the target company’s stock value to see the appropriateness of the investment amount and the corresponding equity ratio. From the standpoint of capital raising, companies would give investors fewer stocks through a high valuation. On the contrary, investors would secure a higher stake through a low valuation.
Valuation for investment decision making
Valuation is indispensable when investing in stocks. Investing without a valuation process is like speculation. That is because buying an asset with no idea how its price would go is like a card game. During the time of valuing the company, you would analyse it and get to estimate its future cash flow. Those processes would gradually lower investment risk.
A wise investment is paying less than the value of the asset.
Target companies can be venture companies, growth companies, mature companies, or distressed companies according to their life cycle. They could also be classified into listed companies or unlisted ones depending on whether they are on the public market. Therefore, as there are many types of firms, choosing a valuation methodology should be careful.
We also value a company for some cases; when giving stock options to employees, when measuring the performance of the management team, when mediation is necessary due to an ownership dispute among investors within a firm, when evaluating the market value of equity to assess the company’s debt ratio, when stock succession, and others.
JCinus is conducting the business valuation for M&A deals, investing, capital development, or for assessing the adequacy of listed stock prices. We know very well how to value according to the purpose of the client’s request.
Our company valuation services
We can provide not only outstanding valuation but also excellent strategy fitted for the valuation purposes.
- Our valuation report contains an analysis of the business of the company and the industry or economy surrounding it.
- The logic of the assessment outcome proves the value of the company.
- The report has a sensitivity analysis by analysing given conditions. Clients can prepare countermeasures for each scenario.
- We can also provide negotiation skills when the client needs to negotiate with the counterpart for pricing. JCinus can act as a proxy in its seat if necessary.
- The scope of the report could be flexibly adjusted according to the client’s request and the contract range.
Company Valuation Consultant: Why JCinus?
We understand the client’s position very well. We will provide clients with customised solutions with our know-how.
- JCinus is conducting company valuation for various purposes in diverse circumstances. We know very well how to solve the problems that our clients are facing.
- Our experts hold a financial certificate such as CFA and CPA or have graduated from an MBA. We had also experienced in investment banking firms and private equity firms.
- We can also competently measure intangible assets. We know the professional methodologies to value intellectual properties or technology.
In May 2021, we publich a financial book titled ‘Corporate Valuation and Investment Analysis Practice’.
If you have any questions about our services, please feel free to contact us. (Email is preferred. Please leave your company name and contact information in your email and we will call you.)
Phone: +44 7384 227463