Company valuation
The reasons for business valuations are many. In addition to transaction-related valuations on the purchase or sale of companies, we provide reports for corporate law, tax, accounting law, tort law, inheritance law and family law valuation purposes. We act as consultants on valuation issues and upstream analyses and as experts in litigation and arbitration proceedings.
Benefit from our expertise and many years of experience in valuing companies, investments and intangible assets. Our experts actively participate in the further development of national and international valuation standards and are always up-to-date with the latest new developments.
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What we do
There are various reasons for performing company valuations. Our experts will provide you with comprehensive support with:
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Valuations for M&A transactions
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Opinions provided by private and by Court-appointed experts
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Guideline valuations
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Consultation for reformation and re-establishment projects
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Fairness opinions
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Purchase Price Allocation (PPA) and Impairment Testing
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Valuation of intangible assets
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Preparing and reviewing Excel-based computing models
Capital market parameters
In assessing the risk-free interest rate (base interest rate), we refer to the current recommendation KFS/BW 1 E 7 of the specialist senate for business administration of the chamber of tax consultants and auditors. According to this, the base interest rate is derived from the interest structure of German federal bonds using the Svensson formula in a forward-looking manner. This procedure generally leads to time-dependent base interest rates in the Euro currency. In the case of an unlimited lifespan of the company being valued, the simplified use of the spot rate with a term of 30 years according to the recommendation KFS/BW 1 E 7 constitutes a permissible approximation for a uniform, constant base interest rate over time. The development of the 30-year spot rate over time is shown in the following diagram:
The data shown in the following charts was compiled by Rabel_Partner and is displayed for your information only. Without concluding a contract the data is to be used for non-commercial purposes only. We do not accept any liability for incorrect information on the following page and our free service does not replace a valuation report.
We calculate implicit market yields for the stock indices ATX, DAX and STOXX Europe 600. The implicit market yields are calculated using a multi-period Dividend Discount Model (DDM) using data from financial service provider S&P Capital IQ. The implicit market yields are calculated by us on a weekly basis based on the aggregated market capitalizations and earnings or dividend estimates per capital market index. The composition of the stock indices is updated quarterly (rebalancing), always after market close on the third Friday in March, June, September, and December. In the first two planning years of our DDM, we base our calculations on the consensus dividend projections. From the third year, a pension phase with a sustainable growth rate (g) is assumed and the terminal value is calculated as the present value of the dividends of the pension phase. Based on the earnings (consensus estimate) forecasted for the third year, growth-related required earnings retention in the amount of the product of growth rate and balance sheet equity (BV2) are taken into account at the beginning of each period. Implicitly, this assumes that the equity return on equity remains constant at the level of the third year in the pension phase. Specifically, we use the following calculation model:
The selection of a specific stock index (as a proxy for the CAPM market portfolio) is still controversial in valuation practice and literature. The various market returns presented on this website are explicitly not interchangeable within the context of a sound company valuation. Additionally, the different market returns presented on this website do not constitute a recommendation for the use of any particular index and do not, in particular, replace the need for individual and case-specific assessment reflecting the conditions of the respective reference date. The determination of an appropriate reference index will regularly require consideration of numerous case-specific aspects, including, among others, the purpose of the valuation, the investment perspective of the valuation subject, the regional distribution of peer group companies and the perceived degree of capital market integration.
The selection of a specific stock index (as a proxy for the CAPM market portfolio) is still controversial in valuation practice and literature. The various market returns presented on this website are explicitly not interchangeable within the context of a sound company valuation. Additionally, the different market returns presented on this website do not constitute a recommendation for the use of any particular index and do not, in particular, replace the need for individual and case-specific assessment reflecting the conditions of the respective reference date. The determination of an appropriate reference index will regularly require consideration of numerous case-specific aspects, including, among others, the purpose of the valuation, the investment perspective of the valuation subject, the regional distribution of peer group companies and the perceived degree of capital market integration.
The data shown in the following charts was compiled by Rabel_Partner and is displayed for your information only. Without concluding a contract the data is to be used for non-commercial purposes only. We do not accept any liability for incorrect information on the following page and our free service does not replace a valuation report.
The implicit expected market risk premium (MRP) is calculated as the difference between the expected market return of the assumed market portfolio (stock index) and the benchmark interest rate.
The selection of a specific stock index (as a proxy for the CAPM market portfolio) is still controversial in valuation practice and literature. The various market returns presented on this website are explicitly not interchangeable within the context of a sound company valuation. Additionally, the different market returns presented on this website do not constitute a recommendation for the use of any particular index and do not, in particular, replace the need for individual and case-specific assessment reflecting the conditions of the respective reference date. The determination of an appropriate reference index will regularly require consideration of numerous case-specific aspects, including, among others, the purpose of the valuation, the investment perspective of the valuation subject, the regional distribution of peer group companies and the perceived degree of capital market integration.
The selection of a specific stock index (as a proxy for the CAPM market portfolio) is still controversial in valuation practice and literature. The various market returns presented on this website are explicitly not interchangeable within the context of a sound company valuation. Additionally, the different market returns presented on this website do not constitute a recommendation for the use of any particular index and do not, in particular, replace the need for individual and case-specific assessment reflecting the conditions of the respective reference date. The determination of an appropriate reference index will regularly require consideration of numerous case-specific aspects, including, among others, the purpose of the valuation, the investment perspective of the valuation subject, the regional distribution of peer group companies and the perceived degree of capital market integration.
The data shown in the following charts was compiled by Rabel_Partner and is displayed for your information only. Without concluding a contract the data is to be used for non-commercial purposes only. We do not accept any liability for incorrect information on the following page and our free service does not replace a valuation report.
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