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Corporate Valuation Audit

During a company valuation process it is essential to review previous evaluations and figures, as well as making the necessary update and amendments.


Examining a company valuation, one often finds that the company has only been rated in one particular way and grade. This usually involves additional methodologies and points. Due to the wide range of valuation methods, IM&A is using the most optimal one or a combination of several methods to arrive at the most accurate value providing the biggest edge when negotiating a selling price. While reviewing the company valuations, IM&A also works out a business plan which helps determine any synergies with the potential buyers(s).

 

When auditing valuations, IM&A determines the potential shortfalls of the methods used, and incorporates different additional aspects that should be considered.

 

• Weaknesses in valuations often can be traced to structural limitations in the positions of evaluation researchers. Valuation is often performed by the company's own accountant, auditor or even a financial manager who cannot view the company value objectively due to too much personal involvment.

 

• Discounted Cash Flow Method - is a widely used valuation tool, which can objectively. However, sometimes Cash Flow projections can be off, not considering the direction the industry or the national economy is going. This requires thorough research in government policies, competition and international trends. IM&A has access to databases that will assist in spotting any inconsistancies in the method used.

 

• Benchmark evaluation based on comparison of different components. Comparative evaluation of different counting methods, quantitative aspects.