International standards IAS, IFRS involve evaluation
notions, in particular when it comes to impairment tests on assets, to valuating staff benefits, or payments based on shares, or at least the fair value of financial instruments.
This competence is requested in order to allocate purchase price within the scope of company mergers.
Our evaluation methodology is based on the following steps:
- Analysis of growth, profitability, operating and financial risks, productivity;
- Understanding of balance-sheet structure and cash-flows;
- Bring to the fore profit, profitability, structure, liquidity, management ratios;
- Strategic analysis (Business field, future environment, growth factor, constraints, opportunities, competition intensity);
- Application of the DCF (Discounted cash-flow) on the basis of provisions of free cash-flow and discount rate (WACC: Weighted average cost of capital);
- Comparison of DCF results with referential methods (market price) or analogical approach (similar deal or multiple of listed companies in the same business field).