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Mines and mineral resources --- Discounted cash flow --- Taxation --- Economic aspects

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Mines and mineral resources --- Mines and mineral resources --- Discounted cash flow --- Taxation --- Economic aspects

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Lumbering --- Discounted cash flow. --- Industrial equipment --- Break-even analysis. --- Machinery --- Costs. --- Costs.

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Nowadays, the transmission of companies market is rapidly expanding. Given this development of the market, the company BestValue was created to be an intermediary between seller and buyers. This project thesis focuses on this phenomenon and particularly to the position of the purchaser of a company. 
In order to transfer a company, BestValue needs to follow different steps. Valorization is one of the most important steps and leads to the value of the target company. One of the challenges is to make the acquirer understand the meaning of this valorization process. Therefore, the thesis will help the purchaser to see where he can create value with the target company. 
Some interviews realized during the project will help to understand the motivation that leads a buyer to buy someone’s business instead of creating his own. Moreover, it helps to value the target company in the position of the acquirer. 
To do so, this thesis starts with some theoretical aspects : an overview of the different methods of valorization, the different types of acquirer and what is transmitted in a company transaction. After the theoretical part, this thesis addresses more practical aspects, with the presentation of cases. Indeed, it will describe where the value is created when someone buys a company, and how the acquirer can optimize his purchase. 
The first output of this work is the creation of a new tool which will help BestValue to demonstrate how the acquirer can create value with a targeted company. Moreover, thanks to the Leverage Buy-Out method, the understanding of the financial aspects of the purchase is the second output of this work.

Adjusted present value --- Discounted cash-flow --- holding --- leverage buy-out --- memorandum --- net present value --- tax shields --- transmission --- valorization --- weighted average cost of capital --- Sciences économiques & de gestion > Finance

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Company valuation is at the center of many crucial steps in the life of an SME. Whereas works on company valuation are plentiful, those focused on SME valuation are much scarcer. This master's thesis firstly aims to provide a summary of the works that have been realized on the adaptation of the discount rate when valuing a company through the Discounted Cash Flow (DCF) model. Another objective of the paper is to determine if the theory put forward through these works finds its counterpart in the practicians' day-to-day when valuing SMEs in Belgium. Through the realization of interviews with eight business valuation experts, answers to this question were provided. Though used by most of the respondents, the DCF model is not perfect and is not suitable for every type of company. When suitable, however, adaptations to the expected rate of return are often necessary to take into account the fact that the company is an SME and therefore has riskier characteristics than large or quoted companies. Such risks include management dependency as well as illiquidity. The adaptations made to the model often consist in adding a small firm premium (SFP) to the base rate. Though studies on the topic exist and propose either referencials or ways to compute this SFP, there is a clear tendency from Belgian professional to draw this premium from their own experience, rather than theoretical works.

évaluation, pme, dcf, sfp, small firm premium, discounted cash flow, valuation, sme, ibbotson, morningstar, duff & phelps --- Sciences économiques & de gestion > Finance