At Houdart A&C, we provide SMEs with valuation services that address challenges related to intangible asset valuation and company shares in a specific transactional, regulatory, fiscal or accounting context. We implement a technical and results-oriented strategy that delivers an objective estimate.
Our offer meets any needs for valuation of intangible assets or shares that you may have, for whichever reason: the acquisition or sale of a company; restructuring within a group that may result in partial asset contributions, demergers or mergers; impairment tests; asset transactions; or tax valuations.
Our business valuation strategy is pragmatic and agile, factoring in the target company’s profile and its activity or that of the asset being valued. Our modelling is adapted to each valuation scenario, since each company is unique due to its characteristics and market environment.
Preliminary review
Our valuation starts with a preliminary review of the business and its market environment, which will determine the valuation methods we will select. It is important to determine which valuation methods are best suited to the specific market environment, the target company’s business activities, the nature of its assets and the available or obtainable financial data.
This kind of financial assessment has a three-pronged purpose: it recognises the drivers of a company’s long-term economic and financial performance; it reviews a company’s finance structure; and assesses the soundness of its financials. Specifically, it must clarify a company’s solvency, performance, growth and level of risk.
This strategic assessment provides an overview of a company’s competitors, its market environment and expected trends. It also lays out market-related threats and opportunities and sketches out the relevant entity’s unique selling points (USP).
Valuation methods
First, we conduct our initial assessments and calculate their potential impact on annual accounts and projected performance. We then select the company or intangible asset valuation methods we consider relevant and/or feasible in terms of execution. Our selection depends on a number of factors such as: valued asset type, type of business conducted and available data. The latter especially applies to financial data related to the target company and its competitors.
Our main valuation methods are as follows:
- Net asset value (NAV),
- Peer comparison (transactions and multiples),
- Dividend discount model (DDM),
- Discounted Cash Flow (DCF),
- Goodwill income,
- Repayment capacity,
- Sector-specific strategies.
Intrinsic valuation methods use the company’s own data (DCF, NAV, etc.). Comparable valuation methods establish a company’s value by sampling comparable companies’ known values.
Drafting a business plan
A forecast income or cash flow statement provides a structure for a company’s growth and profitability outlook. It forms the cornerstone of several standard SME valuation methods, including DCF.
Houdart A&C draws up the plan with the client using recent performance restated as non-normative items and projections.
Valuation of a business or the asset under consideration
We use an Excel template, which is clear, well-structured, comprehensive and designed for subsequent use when variables are changed. Houdart A&C will draft a detailed report that includes scenarios, calculations and concluding remarks as regards selected values.
Houdart A&C conducts financial valuation of assets and SMEs with a highly diversified portfolio of business activities. We have fine-tuned our valuation strategy, tailoring it to the needs of regulated professions. As a result, Houdart A&C is the go-to for auctioneers.