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BUSINESS VALUATION
Business Valuation and Enterprise Value Analysis
A business valuation examines the economic value of a company in light of its financial performance, future cash generation, growth assumptions and risk. NMS Consulting evaluates DCF, market multiples and relevant transaction benchmarks to support company sales, acquisitions, investment discussions and shareholder decisions.
WHEN TO CONSIDER
When Is Financial or Transaction Advisory Needed?
A defensible valuation helps stakeholders distinguish business value from a negotiated asking price. It is particularly useful when:
ADVISORY FOCUS
What Our Business Valuation Services Covers
Each assignment is tailored to the organisation's goals, sector, financial data and transaction or management requirements. We focus on analysis that decision makers can use.
Discounted cash flow (DCF)
Estimate future free cash flows and discount them using a rate that reflects the business and its risks. Evaluate terminal value, growth assumptions, working capital and capital investment requirements.
Market and transaction multiples
Benchmark the company against relevant listed peers and comparable transactions, using metrics such as EV/EBITDA where appropriate. Account for differences in scale, geography, margin, growth and risk.
Enterprise value and equity value
Distinguish the value of operations from value attributable to shareholders. Consider net debt, debt-like obligations, non-operating assets and transaction-specific adjustments where relevant.
SCOPE OF SERVICES
Scope of Advisory Services
Depending on the agreed mandate, the following modules can be delivered individually or together:
Financial normalisation
Analyse historical statements, non-recurring items, related-party transactions and sustainable earnings capacity.
Business plan and forecasts
Review revenue drivers, costs, investment spending and working capital under multiple operating scenarios.
DCF modelling
Build free-cash-flow and terminal-value models with documented discount rates and sensitivities.
Comparable company analysis
Select relevant listed peer groups and analyse financial and valuation multiples.
Comparable transaction review
Use available acquisition precedents as context, taking into account transaction differences and data limitations.
Value bridge and reporting
Present enterprise and equity value indications, adjustments, sensitivities and major assumptions in an understandable report.
KEY DELIVERABLES
Key Deliverables
The specific outputs are confirmed in the engagement scope. Typical documents and models include:
HOW WE WORK
Our Advisory Process
01
Define
Agree valuation purpose, reference date, scope and decision context.
02
Review
Collect financial statements, management information, market data and operating assumptions.
03
Value
Apply suitable methodologies and challenge material assumptions through sensitivity analysis.
04
Report
Explain results, value drivers, risks and a reasonable indicated range to decision makers.
KEY CONCEPT
What is the difference between enterprise value and equity value?
Enterprise value (EV) represents the value of the operating business independently of its financing mix. Equity value relates to shareholders' economic interest. A simplified EV-to-equity bridge deducts net financial debt and makes other relevant adjustments, but the precise bridge depends on the transaction and balance sheet. A valuation range is not a guaranteed sale price; negotiations, deal structure and due diligence affect the final consideration.
Strategic Perspective
Financial and Governance Perspective
Building a Valuation That Can Withstand Scrutiny
A useful valuation explains not only an estimated range but also why that range changes under different assumptions. For that reason, we examine forecast drivers, capital expenditure, working capital requirements, terminal growth and discount-rate sensitivity. Market multiples are evaluated as benchmarks, not automatically applied as the final answer.
The resulting analysis can help shareholders and managers explain a value proposition in investor conversations while recognising uncertainty. Depending on the mandate, the report highlights conditions that could materially change enterprise and equity value, such as customer concentration, recurring profitability, net debt or a change in growth expectations. It is not an assurance that any buyer will agree to a specific price.
- Document assumptions and the valuation date explicitly.
- Compare more than one suitable valuation method where data allows.
- Explain how net debt and transaction adjustments affect equity value.
EXPLORE TOGETHER
Related Advisory Services
Company Sale Advisory Services
Company sale advisory for business owners: valuation, exit planning, buyer research, confidentiality, negotiation and due diligence support.
Mergers and Acquisitions (M&A) Advisory
M&A advisory for acquisitions, mergers and company sales: target research, business valuation, due diligence, negotiations and closing support.
Investor Sourcing and Capital Raising Advisory
Investor sourcing and capital raising advisory: investment readiness, business valuation, financial models, pitch decks and investor research.
RELATED INSIGHTS
Explore Further Reading
GUIDE
Business Valuation: Methods and Decision Points
Business valuation is the process of estimating a company's economic value for a defined purpose and date. It supports shareholders, investors and acquirers in
Read Guide →
FREQUENTLY ASKED QUESTIONS
Questions About Business Valuation
Which business valuation methods are used?
Common methods include discounted cash flow, comparable-company multiples, comparable transactions and, where suitable, asset-based approaches. Method selection depends on the business model and reliability of available data.
What financial information is required?
Typically three to five years of financial statements, current management accounts, debt and cash details, operating KPIs and a credible business plan or projections.
How does EBITDA affect enterprise value?
Sustainable EBITDA often serves as a metric for comparing businesses using EV/EBITDA multiples. It is not the only driver: growth, capital intensity, working capital, financial risk and market conditions also matter.
Is valuation the same as a sale price?
No. Valuation estimates an economically supported range based on assumptions. Transaction price is established through buyer demand, diligence findings, bargaining power, timing and contract structure.
Can valuation support an investment round?
Yes. Valuation can inform ownership dilution, pre-money and post-money discussions, investor negotiations and strategic decisions, provided the assumptions reflect the contemplated transaction.
How does the advisory engagement begin?
An initial discussion identifies business objectives, information needs, intended decisions and the proposed scope of work.
Discuss Your Objectives with NMS Consulting
Share your current priorities, timeframe and advisory needs. We will review the scope of an appropriate engagement and explain the next steps.
Independent reference: IFRS Accounting Standards — Visit official source ↗