Financial valuation

Implementation of standard methods of financial assessment (discounted cash flows, determination of ratios, etc.),

as defined by the Code Monétaire et Financier (French regulations on financial transactions) or on a contractual basis.

Financial valuation:

  • Firm: using DCF and multiples (peers, comparable transactions) in various context (equity deal, legal purpose, etc.).

  • Patent and patent portfolio for assets disposal, Joint Venture incorporation including contribution in assets, negotiations, etc. using the royalties’ methods and the costs impacted by the lifetime of the assets.

  • Management package, stock-options plan, preferred shares, etc. using financial methods: Black & Scholes, binomial model, Monte-Carlo simulation.

We valuate in various context of equity deals with a strong competence in innovative industries. Our expertise is based on multi-criteria approaches to perform financial valuation of firms, patents or patent portfolios, other intangible assets, etc.

We work closely with Intellectual Property lawyers and advisors.

Based on an analysis of your needs, we combine intrinsic and/or analogical methods of valuation.

Intrinsic methods

  • DCF (Discounted Cash Flows). Assessment of the company value based on net cash flows likely to be generated, discounted to the ratio corresponding to the revenue expected by shareholders in function of field of activity. This is predicated on availability of business plan and balance sheets, as well as projected income statements prepared by management.
  • Return method. Based on profits shared; applies to companies distributing dividends on a regular basis. Based on the discounting of dividend flows, it entails evaluation of company policies over several budget years.
  • Patrimonial method

Analog valuation methods

  • Stock ratio method : ratios are chosen after sampling comparable companies (and according to context, turnover, EBIT, net results, PER), and a corrective rate is applied if necessary.
  • Comparable transactions