Business Valuation
Companies need to know their market value at key turning points — moments of structural change or shifts in ownership. These include situations such as:
- Valuation for sale following an acquisition offer from an investor or another company.
- Valuation for a partner buyout or exit.
- Valuation for a merger with another company.
- Valuation for a public or private offering.
- Valuation to determine the financial worth of each shareholder’s stake.
- Valuation during liquidation.
Valuation Methodologies
A company can be valued through four main approaches, each containing several methods:
1. Income-Based Approaches
- Discounted Cash Flow (DCF) Method
- Venture Capital Method
2. Market-Based Approaches
- Comparable Transactions Method
- Revenue Multiple Method
- Earnings Multiple Method
3. Asset-Based Approaches
- Net Asset Value Method (note: this is no longer used as a standalone valuation but is added as a supplementary figure to results from other methods).
4. Factor-Based Approaches
(For companies with no revenue and no reliable projections)
- Replacement Cost Method
- Scorecard Method (an advanced version of the Berkus Method)
The expertise of a business valuator lies in selecting the methods most appropriate for the company’s industry and current situation — ensuring an accurate and truly representative valuation.
Our Valuation Process
At Khedr & Business, we provide business valuation services according to industry-recognized standards, delivered through a distinctive methodology. The process follows these steps:
- Data Collection: We send you an Excel file with questions covering key company information, including:
- A brief overview of the company’s activity and country of operation
- Revenue for the last 12 months
- Net profit for the last 12 months
- Assets and liabilities statement (if applicable)
- Profit projections for each of the next five years, with justification
- Comparable companies locally and globally (optional)
- Method Selection: We identify the valuation methods most suited to the company’s industry and available data — typically three to four methods.
- Research: We conduct independent research to gather the figures and benchmarks required by the selected methods.
- Valuation: We carry out the valuation using the chosen methods, combining company-provided data with our research findings.
- Final Report: We determine the company’s value and prepare a comprehensive valuation report.
- Delivery: The final report is delivered as a PDF, and we remain available to answer any follow-up questions.
The final deliverable is a PDF document containing the valuation methods used, the data sources referenced, all figures applied, and the final valuation that best represents the company’s true worth.
