Our services

Our services

Business Valuation

1, Simple business valuation according to the asset approach
We only offer this for
A, Solopreneurs (companies with only one employee)
B, Holding companies

2, Simplified business valuation without consultation
A business valuation is typically but not always uncomplicated, when the business has been around for a few years, and the profitability between the fiscal years is steady and there are no major assets on the balance sheet that needs to normalized. The the financal statements  must also be in order. The valuation methods used, are the asset approach in combination with the income approach.

3, Standard business valuation with consultation
Here, there are no limitations of how complicated the valuation can be, and unlimited consulting is included.

4, Tech valuation
Valuation of tech companies, such as Saas (software as a service), digital platforms and other digital companies.

What we do not offer

A, We do not offer valuations of restaurants and smaller stores etc, according to the market approach. However, we do offer our services to larger companies in these industries, with what according to us is the correct methodology, ie, several valuation methods combined, and normalized financial statements.

B, We do not offer valuations of pre revenue companies, and we do not offer valuations for fundraising purposes.

Due diligence

1, Legal due diligence is about reviewing the company’s contracts and potential liabilities. The larger the company, the larger need for legal due diligence.

2, Financial due diligence is about confirming that the company’s finances are what they are claimed to be. This is the most common form of due diligence, which is always done regardless of the size of the company.

3, Forensic accounting, is basically the same as financial due diligence, but with more focus on criminal elements, such as money laundering etc.

 

Transaction advisory

Received an offer for your business, containing complicated terms? We help you navigate the jungle, which can include:

* Negotiation support regarding the valuation
* Seller liability post transaction
* Earn out
* Seller financing
* Payment terms
* Conditional down payment
* Unconditional down payment
* Exit planning, how to increase the value of the business
* Non compete agreements
* Vendor due diligence and regular buy-side due diligence

Contact us

M&A Advisory

Valuation methods & fair market value

About us

Books by Christoffer Nielsen

Why our valuations are defensible in court

Our anti corruption policy

Our personal inspection

Our interview

Due diligence

Commission free business brokerage

Business valuation is the process of determining the most likely value of the business, in a transaction, where both parties are equally motivated to transact. A qualified valuation of a business should be according to the concept of intrinsic value and include an unbiased normalization of the financial statements. The final calculation of a business appraisal is fairly simple and quick, which is typically what you only get, when ordering an online valuation, without an on-site visit. The process of normalizing the financial statements along with weighing in the different valuation methods against each other, is what requires the most amount of time and competence, by the business valuator. The normalization of the financial statements is typically what affects the valuation the most. A company valuation should only be considered as reliable when it is properly independent and unbiased.

The most common methods for valuing a company are; the market approach, the income approach and the asset approach. They all have their strengths and weaknesses, and their own subcategories. No valuation method is complete enough, to solely be used to value a company.

The market approach doesn’t properly weigh in the profitability or assets of the company, which arguably are the most central aspects when valuing a business. Therefore, most valuations according to the market approach, are not of intrinsic value.

The income approach doesn’t take the assets that the company owns, into account. Therefore, companies with lots of assets get deceptive valuations.

The asset approach doesn’t take the profitability into account. Therefore, profitable businesses get deceptive valuations.

Want to go with a cheaper option or even do the valuation yourself?
Nothing is stopping you, but...

You may lose the lawsuit, due to the valuation failing to be waterproof.

You may never settle the conflict, hurting the relationship with your counterpart.

You may get deceived while entering or exiting your partnership.

Tell us how we can help you

We work with the same valuation methodology as the big4, yet we charge half the price, and provide better personal service. If you have a small store/restaurant/salon, or a business that does not yet have revenue, we instead recommend using a business broker for the valuation.

Christoffer Nielsen meets all clients in Texas personally. Cell # 737 232 0838

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