Company Valuation Guide now available

Haltin has published its Company Valuation Guide for business owners. The eight-page guide, written in Turkish, offers a short framework for reading a company’s value before a sale, partnership or growth decision.

Questions that move value

The guide opens with concrete questions about how small changes affect value: a 1% rise in revenue, a 1-point fall in interest rates, collecting receivables 10 days earlier, or investing in a new machine. The answer depends on profitability, cash needs and risk. Valuation measures those effects together.

Which decisions?

Valuation starts before a sale. The guide separates four decision points:

• Sale and partnership: Ground expectations in evidence for a full or partial sale.
• Acquisition and merger: Assess the target, strategic fit and possible synergies.
• Growth and investment: Measure how new capacity and investment decisions affect cash flow.
• Ownership structure: Prepare for share transfers and exit discussions.

Sources of value and methods

Revenue, profit and cash are not the same thing. The guide asks how much of earnings converts into sustainable cash, under three headings: profitability, cash conversion, and risk and continuity.

It sets out three ways of looking at the same company:

• Discounted cash flow: Expected free cash flows brought to today, taking risk and time into account.
• Multiple analysis: A comparison with similar companies and transactions, allowing for differences in scale, growth and risk.
• Net asset value: The difference between the appropriate values of assets and liabilities.

The choice of method depends on the company and the purpose of the valuation. A dividend approach can also be used where it fits.

Value and price are not the same

The guide separates enterprise value from the equity value that belongs to the owners. In its illustrative example, adding TL 10 million of cash to an enterprise value of TL 100 million and deducting TL 30 million of financial debt gives an equity value of TL 80 million. In a real transaction, price can also be affected by payment terms, working-capital adjustments, control rights and buyer-specific synergies.

Preparation

Increasing value starts with preparation. The sequence the guide suggests is to assemble the data; make dependence on a single customer, key people and suppliers visible; test scenarios for growth, margin, collection period and financing cost; and choose priorities for cash conversion, reporting and management structure.

The first meeting is free and confidential. For a valuation, sale preparation or a partnership process, get in touch.

This material is for general information. It is not a company-specific valuation or investment advice. Every engagement should be read together with its purpose and valuation date.