What are the advantages of an independent evaluation?
During total or partial sales of companies, evaluations are often conducted by intermediaries who are party to the future sale, and are invoiced as a fixed retainer fee included in and inseparable from the general selling instructions.
By requesting an evaluation of your company by an independent appraisal company you will:
-
obtain a complete presentation and valuation of your company, while remaining totally free to choose an intermediary to conduct the sale
- be able to negotiate lower fixed charges from the intermediary for the sale
When is it necessary to evalue a company?
Whenever there are changes in the company's shareholders:
- Sale to be carried out when the manager retires
- Capital increase, sale of shares
- Merger (acquisition of interlocking investments) between two companies (calculation of the conversion parity)
- LMBO (Leverage Management Buy Out)
- Informing employees and shop stewards during mergers/acquisitions
- Initial public offering.
As well as any time one of the shareholders must appraise his personal assets.
This is the case in the following situations in particular:
- Inheritance
- Gifts
- Appraisal of the company in connection with the solidarity tax on wealth (ISF) (1st tax return or justification of a change in the declared value for non-exempt private assets).
Method
Appraisal of the company involves determining the price at which a transaction should be concluded under normal market conditions.
The appraisal of a company's value is based on a combination of different methods of calculation, and a comparison with databases of real transactions. But it involves more than just accounting and financial aspects: it also includes elements qualifying the appraisal, which any buyer would take into account, resulting from an analysis of the company's strengths and areas for improvement:
- Commercial positioning, competitors
- Industrial, human resources (manager and team) and legal context
- Contracts and commitments
- Anticipated developments.
Lamy SA conducts complete appraisals of enterprise value by pooling the skills of multidisciplinary teams (finance, management, industry, services etc.).
In France, approximately 50,000 companies change hands each year.
But the number of transfers of companies is expected to increase significantly in coming years: the baby boom generation of company managers (born between 1944 and 1954) is about to retire.
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