Company takeover and merger

An independent valuation is essential with regard to an acquisition. Both buyer and seller have specific future expectations for the company. Each party often has its own idea on the company’s risks. Subsequently, buyer’s and seller’s opinion on the economic value of the business can differ significantly. A  Register Valuator provides an independent and expertopinion with regard to the economic value of a company .
Emotion versus rationale
A company acquisition is often an emotional process for the people involved. In many cases, the entrepreneur has built up the company himself or herself. This means that the company and its staff feel as if they are his or her 'baby'. Emotion definitely plays a large role with regard to the transfer of family businesses. Emotion may considerably muddy the value perception. The Register Valuator ensures that rationale returns to the process with an independent valuations. The RV can be called in by either the party buying or selling within this context.

A merger is comparable to an acquisition to a large extent. The merging parties will not only want to know before the merger what their 'own' company is worth, but also what the other company is worth. Both parties can also call in the RV for this situation.  

Economic value versus price
A statement such as 'your company is worth four times its profits' or 'once the turnover' does not take into account the future and the environmental factors of a company, being the key variables to calculate an economic value. These types of statements therefore never really stand up to scrutiny in practice. If you want to know more about the difference between the price and value of a company or if you want to have your company valued by a professional,  click here.