Get a realistic valuation of your business and the tools to monitor it yourself

What does a valuation mean?

A valuation determines the monetary worth of your company. It allows you to assign a value to your business based on structured methods and analyses. There are various approaches to achieve an accurate valuation:

• Historical valuation methods
  • Net book value
  • Cost-to-duplicate method
  • Multiple method
• Future valuation methods
  • Discounted Cash Flow Method (DCF)
  • Venture Capital method

A combination of different methods based on financial analyses, market analyses, business assets and future growth prospects calculates the fair and realistic estimate of your company’s value.

Why determine your company's value?

A valuation is essential not only when you want to sell your company to another party, but also when you’re looking to attract private investors through shares. It can also help you decide whether selling or bringing in investors is worthwhile.

If you're unaware of your company’s valuation, it becomes difficult to estimate the impact a capital increase might have on your shareholder structure.

A solid valuation also puts you in a strong position to negotiate and to assess whether an investor’s proposal aligns with market standards and is attractive enough.

How do we proceed?

At The Harbour, our advisors determine your company’s value using a variety of widely accepted valuation methods. It’s important to apply the methods that best fit your type of business. For example, a tech startup is valued differently from an agricultural company. By focusing on valuation methods specifically suited to your company, we can provide a reliable estimate of its potential value.

We then conduct market research to assess how your company is valued in comparison to similar businesses and whether the chosen valuation aligns with current market standards.

In addition, we calculate the impact of an investment on your cap table and estimate the potential return an investor might expect.

The final valuation for an investment is not necessarily the same as the one derived from the various valuation methods. It also depends on your negotiation skills, the purpose of the sale or capital round, and the availability of alternative investment opportunities in the market. In other words: your company is ultimately worth what someone is willing to pay for it. Of course, having a well-founded valuation provides a solid starting point for those conversations.

What do you get after the valuation?

You will receive a valuation report from The Harbour. This report provides a market-based valuation of your company, using the most common valuation methods. It also includes an overview of comparable transactions and companies in your sector. You can use this document in discussions with investors.

In addition, you will receive an Excel valuation template, allowing you to calculate the value of your company yourself, based on the most widely used principles. You will also get a cap table simulation to assess the impact of the valuation on your shareholder structure.