By acquiring a company or business unit, you successfully implement your growth strategy and develop your business model strategically and operationally. However, the acquisition also has a direct impact on the balance sheet and accounting.
Our range of services
We support you in the early analysis of future burdens on earnings as part of the pre-deal PPA as well as in the complete purchase price allocation following a successful transaction.
Based on our experience in complex valuation and accounting issues and the special features of your industry, we offer you comprehensive guidance for identifying the key intangible value drivers and determining the fair value of intangible and tangible assets, liabilities and contingent liabilities.
We not only provide you with accounting support, but also assist you with the annual goodwill and asset impairment tests, impairment tests of investments and the valuation of financial instruments.
KPMG Insights on Deal Advisory
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Business valuation as the basis for well-founded decisions
A robust business valuation provides guidance in situations where management, shareholders or investors have to make far-reaching decisions. Whether for a purchase, sale, financing, restructuring, accounting or tax purposes: the value of a company depends on many factors that must be assessed with technical precision.
KPMG supports companies with valuation issues throughout the entire transaction and decision-making process. In doing so, KPMG combines financial valuation methods with industry knowledge, capital market expertise and experience gained from national and international projects. This results in valuations that are transparent, robust and appropriate for the specific decision-making context.
What sets KPMG’s valuation services apart
KPMG’s valuation services stand for sound business valuation in complex economic situations. The reasons for valuation vary significantly: A transaction requires different analyses to an impairment test, a fairness opinion or a valuation for tax purposes.
KPMG therefore considers not only financial models, but also the business model, market environment, capital structure, synergies, planning assumptions and risks. It is crucial that the valuation is appropriate to the issue at hand and that the underlying assumptions can be transparently understood.
Services relating to business valuation
Valuation in the context of M&A transactions
In acquisition or disposal processes, business valuation serves as a key reference point for pricing, negotiation and decision-making. KPMG provides support in analysing business values, value drivers, potential synergies and sensitivities. This gives decision-makers a sound basis for the next step in the transaction process.
Valuation for accounting and reporting purposes
Valuations are also regularly required outside the context of traditional transactions. These include impairment tests, purchase price allocations and valuations of equity investments and intangible assets. KPMG provides support with methodological classification and transparent documentation for internal and external stakeholders.
Fairness opinions and independent assessments
When making significant business decisions, an independent valuation can provide additional certainty. KPMG produces robust analyses that support management, supervisory bodies or shareholders in assessing economic appropriateness. The focus is on objectivity, transparency and technical clarity.
Valuation of complex financial instruments and assets
Complex financial instruments, options, equity structures or intangible assets place high demands on methodology and modelling. KPMG brings quantitative valuation approaches and capital markets expertise to bear. This enables even complex valuation issues to be addressed in a structured manner.
Strategic valuation analyses
Corporate value is influenced by the market environment, strategy, financing and operational performance. KPMG analyses which value drivers influence corporate value and where options for action exist. This helps management teams to better assess investments, portfolio measures or strategic initiatives.
Business valuation with sector and transaction experience
A good valuation does not end with the calculation model. It must explain why a value is plausible and which assumptions are particularly relevant to that value. KPMG combines valuation know-how with expertise from Deal Advisory, due diligence, M&A, Accounting Advisory and Tax.
This enables valuation issues to be examined from a variety of perspectives. This integrated approach is a key advantage, particularly in the context of international transactions, complex group structures or volatile market conditions.
Frequently asked questions
A business valuation is appropriate when management, shareholders or investors require a sound basis for decision-making. Typical reasons include M&A transactions, financing, reporting requirements, restructuring or strategic portfolio decisions.
A company’s value is influenced, amongst other things, by its business model, profitability, growth prospects, capital structure, market environment, risks and potential synergies. Planning assumptions and the cost of capital can also have a significant impact on the valuation result.
KPMG provides support in analysing enterprise value, value drivers and sensitivities. This gives decision-makers a robust basis for purchase price considerations, negotiations and internal decision-making processes.
No. In addition to M&A transactions, business valuations also play an important role in financial reporting, tax matters, fairness opinions, restructurings, investment valuations and strategic decisions.