The value of a business
In case of the division of an estate upon a death in the family it was necessary for us together with experts in the catering and real estate business to value the shares of a large recreation company. Finding the right balance between liquidity, discounted cash flow and market value made this case one of the most challenging ones in 2010.
Another special case entailed the valuation of a medium-sized insurance company. Factors such as the solvency requirements of the De Nederlandsche Bank have an impact on the evaluation of share price. Another factor, for instance, was the fact that upward pressure on the discount rate failed to ease owing to the continuing threat of uncertainty facing emerging markets. We have developed the Earn-Out pricing model especially for use in the above circumstances and can report a growing interest.