Business valuation

Business valuation is the process of determining the worth of a specific company or a group of companies. The necessity to know the value may arise when the fair value or the sale value of a company needs to be determined, which on most occasions happen when a new company is established, or new partners attracted, the existing company is for sale or it is being split up. In addition, valuation of a business is necessary also when evaluating new projects, considering mergers and acquisitions, and making strategic decisions on future development.
Valuation of companies, whose shares are not traded on a stock exchange, is a complex process; valuers need to understand the factors that drive corporate value and form the basis of the future growth. The result of a business valuation is a valuation report that allows the client to understand the worth of the valued company, before any activities are begun in relation to any movement of this company’s shares.

Business valuation service is used not only by the sellers of companies but also by investors who wish to purchase a company and want to make sure that they do not overpay. Also, the assumptions used and the inferences and conclusions drawn in the process of valuation may be used as certain guidelines to the existing or the new management or owners of a company on how to create the value for the future.
Our valuers at SIA TVK Group have extensive experience in determining the value of a company. We have prepared valuations both in cases of structural changes of ownership, when selling/purchasing shares, and providing conclusions in cases of property contributions/right to demand. Edgars Kreits is a certified valuer of entrepreneurship (business) and non-material assets, and all our valuers are included in the list of Valuers of Property Contributions of the Registry of Enterprise.
SIA TVK Group provides:

  • business valuation in accordance with the laws and regulations of the Republic of Latvia, and in compliance with the Latvian and international valuation standards;
  • valuation of non-material property (trademarks, patents, licences, etc.);
  • determination of the value of the right to demand;
  • due-diligence or in-depth investigation of a company prior to any merger, acquisition or sale;
  • sector reports regarding companies listed on the stock exchange and comparable market transactions.