Auris Finance is a financial advisory firm expert in company valuation
Auris Finance uses valuation methods adapted to your company
- An acute understanding of the relevant valuation methods for your industry
- The parameters and assumptions used in our valuation are relevant, tested and justified
- Our legal status as Finance Investment Advisor (cf. AMF) guarantees the reliability of the valuation range
Introduction to valuation
The objective of the financial valuation of a company is not to determine its unique value because it does not exist. The expert in valuation has to make a range of values identifying the minimum and the maximum values.
However, a company valuation is a rigorous process which relies on formalism, more or less complex depending on the size of the company, its organisation, and of course its activity.
That’s why Auris Finance has a team of financial analysts and sector experts to ensure that you are fully aware of the valuation methods applied in your sector of activity.
Our valuation reports, as well as the various parameters used in our reports, are always justified and detailed. They refer to the last comparable transactions realized.
Finally, the results obtained with the different valuation methods used, must be considered as tools to help executives and investors in their decisions making process.
- A financial analyst team managed by an industry expert
- A rigorous strategy compatible with AFITE requirements (association for financing and company transfer)
- Auris Finance is a member of the SFAF (French Society for Financial Analyst)
- Financial valuation as a tool to help executives and investors in their decision
Financial diagnosis of the company
Before any financial analysis, Auris Finance carry out a diagnosis of the company, focusing on the capital structure, the organisation, the business model, the products and services line, the customer base, the dependency to a third party or to key person, etc. This work enables to determine the position of the company on its market, to identify its attractiveness for potential buyers and to determine the valuation range (low, median, average and high valuation).
The analysis of the positioning of the company on its market, of its potential of development on a short and medium term and of its environment (economic, technologic, and regulatory) enables to improve the diagnosis of the company. This diagnosis helps understanding the business model of the company on a strategic and financial perspective. Strategic analysis gives an opinion on the competitive situation of the company, opportunities given on its market and identifies its strengths and weaknesses.
- Collections of structural, financial, legal and fiscal information of the company
- Analysis of the company’s market and its position
- Highlight of its strengths and weaknesses
Financial analysis of the company
From the past three financial statements of the company, and the forecast of the current year, we analyse the performances of the company and implement, with the help of the executive, a detailed business plan. Then, we define, based on the detailed operating accounts, a “normative income” of the company, i.e. the result obtained under normal operating conditions of the activity, by isolating items of an exceptional nature such as non-recurring expenses or executive compensation for example.
The company’s balance sheet structure is also taken into account, its assets (brands, business, real estate, investments), its liabilities (equity, financial debt, off balance sheet commitments) and net cash are then taken into account to estimate the company’s value. Auris Finance’s valuation expert uses a valuation matrix adapted to the company and its sector of activity.
- Identification of the normative income by excluding exceptional items
- Analysis of the balance sheet history
- Realization of an estimated budget of the current year
- Valuation matrix proper to the sector
Overview of the valuation of the company
Auris Finance uses methods of valuations adapted to the context and recognized by the main actors of the sector: precedent transactions, comparable company analysis, discounted cash flows, net asset valuation, etc. The valuations experts rely on the latest transactions in your industry and listed in our internal and external databases.
The industry expert determines an objective and adapted range of price according to the operation framework (full or partial sale, shareholder arbitration, family transfer) and the market (supply and demand, perspective of development, competition). AURIS Finance presents a detailed business valuation report. Beyond the values determined, it highlights the company’s assets, any obstacles to its sales, and recommends a list of actions to be taken in order to optimize its value as part of a project to sell the company.
For the past ten years, AURIS Finance has maintained a trustworthy relationship with us, and has efficiently helped us grow externally.
One of the main challenges of my sales project was finding a buyer who could keep my company sustainable. AURIS Finance was the best choice to take the lead because of their industry expertise. The team displayed outstanding professionalism throughout the entire process.
I tasked AURIS Finance with the financial valuation of my company. I particularly appreciated the quality of their final valuation report which reflected the experience and competency of the firm’s teams.