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By Gregoire Huret, partner and Milhan Baig, director, PwC Luxembourg
Valuation is not only about method and calculation, it requires the consideration of a number of commercial aspects which stretch beyond the typical financial performance metrics. When it comes to estimating the value of a business, profit, revenue and net assets are commonly perceived as being the main, or at times the only, components of value measurement. However, these are metrics and results of the underlying source of value, or what we may call value drivers.
Businesses which focus almost entirely on maximizing these metrics can risk overlooking wider commercial issues which are fundamental to sustainable value creation over the longer term. There are lessons learnt...
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