We apply best practice corporate valuation techniques to establish an accurate equity valuation or base cost in the case of valuations for Capital Gains Tax purposes.
This may also involve a review and analysis of the management forecasts and its underlying assumptions to apply these cash flows as part of the valuation inputs.
There are currently a wide range of approaches that can be used to value an entity. Here the relevance of each methodology varies and is largely dependent on the nature of business, the purpose of the valuation, what is being valued, and the availability of the necessary information.
Of these methodologies, the discounted cash flow (DCF) basis has been proved to be the most robust and, while a number of assumptions are usually made regardless of the methodology, the DCF basis still yields better results compared to any other basis.
Our firm largely favours the DCF approach and will use other bases only should the DCF not be able to be applied. Alternatively other bases will be used as proxies for the DCF valuation. We are licensed to use the McGregor BFA research system, a research tool commonly used by bankers, and other financial institutions. This software allows the valuation process to be more efficient in terms of extracting industry data and data specific to the valuation in question.