What is a business valuation?

"Bedrijfswaardering" (Business valuation) is determining the value of a company or its parts using various valuation methods and techniques. Here, we look at the economic value, based on the net cash flows and the risks of the company. Often, the 'discounted cash flow method' is used for this, which looks at future income and expenses.

The most common reason for a business valuation is the transfer of shares in a company. This can be in the event of a takeover, a management buy-out, the buyout of a minority shareholder, business succession, divorce, or inheritance.

In addition, a valuation is useful in determining economic damages, tax matters, legal proceedings, and in introducing stock and option plans for employees. Business valuation is also becoming increasingly important within financial reporting and annual reports.

Ultimately, it's all about gaining insight into the true value of a company, so you can make informed choices for the future.