Valuation of a company

What can we do for you?

Sale or purchase of a company it is a process that requires making accurate decisions based on reliable data. Navigator Capital Group comprehensively supports clients planning purchase and sale or M&A transactions. We have many years of experience in valuing companies, regardless of their size, legal form or the sector in which the entity operates. We assess the value of companies listed on the WSE, New Connect and operating outside the stock exchange.

We perform an in-depth analysis of financial data and check the market environment in which the company operates. The main criterion that guides us in the valuation process is the reliability of the performed activities. We are aware that the correct valuation plays a strategic role in manageming the company and forms the basis for making key decisions.

What is company valuation?

Company valuation allows you to estimate the value of the company. Most often, it is carried out in the case of buying or selling companies, mergers and acquisitions , bankruptcy and tax proceedings.

The valuation process includes the analysis of many different areas of the company’s operations, including: such as:

Financial condition
The condition and potential of the sector in which it operates
Customer structure
Resources
Development prospects

We perform company valuations both for investors planning to purchase the company and for those preparing to sell the company. In the case of a sale transaction, a professionally prepared company valuation may more effectively attract potential buyers. For the buying side, an appraisal helps to reliably estimate not only the current value but also the business potential. This, in turn, makes it easier to make an informed investment decision.

HOW DO WE PERFORM BUSINESS VALUATIONS?

Income method (DCF)

Based on future cash flows.

Income valuation methods are based on the present value rule, in which the value of assets is the value of future expected cash flows from these assets. The basis for the valuation are the prepared financial projections and the estimated level of risk of the enterprise.

The DCF method is considered one of the most reliable methods of examining the value of a company.

Market and transaction method

Market multiples based on listed comparable companies/transaction multiples based on completed transactions.

Valuation using the comparative method involves comparing the valued enterprise to companies with a similar business profile that are listed on the public market or for which the details of the sale transaction are known.

The basis for comparisons are market indicators such as P/E (price/net profit), P/BV (price to book value), P/S (price to sales) or EV/EBITDA (value of equity to operating profit with depreciation).

How do we calculate company value? The enterprise valuation process at Navigator Capital

DETRMINING THE PURPOSE OF THE VALUATION

Determining the purpose of the valuation is basic information that determines further stages of the procedure.
The choice of the appropriate method depends on the valuation purpose.
If the valuation is performer for the sake of the liquidation of the enterprise, the category of value will be the liquidation value; However if the purpose is the sale of shareholders’ shares, the valuation will be aimed at obtaining information about the market value of the given entity.

DATA COLLECTION

This is one of the key stages of valuation.
The final valuation of the company will depend on the correctness of the data.
At this stage, it is necessary to collect information from the client, including: the business model, finances and market environment.

CREATING A REPORT AND SENDING IT TO THE CUSTOMER

The report contains a full analysis, economic and financial assessment of the company and the valuation prepared in the previous stage.
Navigator Capital provides further support until all customer doubts related to the prepared report are clarified.

Stages of company valuation using the DCF method

This is the method most often used in company valuation processes

Analysis of the company’s business model
Microenvironment analysis
Market analysis
Preparation of a dedicated financial model used for calculations
Financial analysis
Analysis of macroeconomic indicators and financial analysis of competition results
DCF Valuation Summary

Company value – valuation report

A report determining the value of the enterprise prepared by Navigator Capital experts includes:

Assumptions adopted for the valuation of the company, in accordance with the client’s needs
The adopted valuation methodology
Key data about the company, e.g. history, area of business activity, services or products offered, markets in which it operates, company bodies, specifics of the sector, competition, prospects for the industry.
Detailed results of the analyzes performed – including analyzes of historical and current financial reports, including assets and liabilities
Indication of the estimated value of the company with justification

Our company valuation reports have a logical and transparent structure. We prepare them in accordance with national and international standards:

KSWS – National Standard for Specialized Valuation
IVSC – International Valuation Standards Council

How long does the company valuation process take?

The company valuation process usually takes 3 to 4 weeks.
Completion of the works within this period depends on whether the Company provides the necessary materials, in particular historical financial data and the Company’s forecasts.

Enterprise valuation – why us?

We have extensive experience in the area of transaction advisory, we support clients from various sectors
We always adapt our activities to the individual needs of our clients, providing support at every stage of the purchase or sale of enterprises
We operate comprehensively, offering a wide range of transaction advisory services
We put high quality and reliability of our valuations first, diagnose potential risks related to the transaction and support clients in making key decisions.

Do you want to find out how we can support you when buying or selling a company?

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M&A market q2 2023

July 2023

The mergers and acquisitions market is currently an extremely dynamic area that plays a key role in the restructuring and development of companies and shapes the business landscape around the world.
In our expert commentary, we will focus on analyzing the latest trends and the challenges it faces. We will also look at the impact of global events and economic changes on M&A activity to better understand the opportunities and risks presented by this fascinating area of business.
We invite you to an interview with Artur Wilk – Manager in the M&A Department of Navigator Capital, in which we will answer these questions.

M&A market q1 2023

April 2023

The mergers and acquisitions market may fluctuate depending on the overall economic situation, global trends, government policies, as well as other external and internal factors that may influence mergers and acquisitions decisions.
In recent months, we have noticed a dynamic revival in the number of transactions, primarily in the IT and medical sectors.
We invite you to an interview with Artur Wilk – Manager in the M&A Department of Navigator Capital, in which we will answer these questions.

MARKET IMAGE ANALYZED IN M&ampA INDEX POLAND reports

M&A market in Poland – Summary of Q3 2023

October 2023

In cooperation with FORDATA Virtual Data Room, we have prepared a report in which we describe the 3rd quarter of 2023 on the Polish mergers and acquisitions market. It shows that in the third quarter In 2023, we witnessed 94 transactions. This is 20 more than in the third quarter. 2022 and 2 less than in Q2. 2023 The largest transaction was the acquisition of Techland by Tencent.

M&A market in Poland – Q2 2023 summary

July 2023

In cooperation with FORDATA Virtual Data Room, we have prepared a report in which we describe the second quarter of 2023 on the Polish mergers and acquisitions market. It shows that in the analyzed period, 96 mergers and acquisitions transactions were completed on the Polish market. This is 7 more than in Q2. 2022 and 1 more than in the first quarter. 2023 The largest transaction was the acquisition of STS Holding by Entain CEE.

M&A market in Poland – Summary of Q1 2023

April 2023

In cooperation with FORDATA Virtual Data Room, we have prepared a report in which we describe the first quarter of 2023 on the Polish mergers and acquisitions market. It shows that in the analyzed period, 95 mergers and acquisitions transactions were completed on the Polish market. In terms of industry, the Media/IT/Telecom (16%), Industry (15%) and FCMG (12%) sectors dominated.

M&A market in Poland – Summary of 2022

January 2023

In cooperation with FORDATA Virtual Data Room, we have prepared a report in which we describe the end of the year on the Polish mergers and acquisitions market. It shows that in 2022, 341 mergers and acquisitions transactions were carried out on the Polish market, approx. 4% more than a year ago and approx. 48% more than in 2020 (328 and 229 transactions, respectively).

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Valuation of a company

What can we do for you?

What is company valuation?

HOW DO WE PERFORM BUSINESS VALUATIONS?