Valuation Report: [Subject company or business interest]
A full business valuation report: engagement and purpose, standard and
premise of value, scope and information sources, business and
financial analysis, forecast, income approach (discounted cash flow),
market approach (trading comparables and precedent transactions),
asset approach, sensitivity analysis, reconciliation to a concluded
value, assumptions and limiting conditions, and the valuer statement.
Structure aligned with the International Valuation Standards (IVS,
effective 2025-01-31) by standard number, with fair value references to
IFRS 13 and FASB ASC Topic 820 by name and number only. The worked
example values "Halvard Tools", a fictional listed toolmaker; every
figure is invented. Replace every [bracketed] value and every row
marked Example. This is a document format, not financial,
investment, tax, legal or accounting advice. Obtain the standard or law
for the normative text.
Document control
| Field | Value |
|---|
| Document ID | [VAL-2026-001] |
| Subject | [Legal name of the company or interest valued] |
| Interest valued | [100% of ordinary equity / minority stake of n% / business unit / enterprise value] |
| Purpose | [Board assessment / financial reporting / tax / transaction / dispute] |
| Standard of value | [Market value / fair value / fair market value / investment value / other] |
| Valuation date | YYYY-MM-DD |
| Report date | YYYY-MM-DD |
| Currency and units | [EUR millions unless stated; per-share values in EUR] |
| Version | [0.1] |
| Status | [Draft / Under review / Issued / Superseded] |
| Owner (lead valuer) | [@lead-valuer] |
| Approvers/reviewers | [@engagement-partner], [@quality-reviewer] |
| Client or addressee | [Name and role] |
| Classification | [Confidential] |
| Last updated | YYYY-MM-DD |
| Model file and version | [Model name, version, hash or location] |
Approvals
| Role | Name | Decision | Date |
|---|
| Lead valuer | [@lead-valuer] | [Prepared] | YYYY-MM-DD |
| Independent quality reviewer | [@quality-reviewer] | [Reviewed, no open points] | YYYY-MM-DD |
| Engagement partner or head of valuation | [@engagement-partner] | [Approved for issue] | YYYY-MM-DD |
Revision history
| Version | Date | Author | Change |
|---|
| 0.1 | YYYY-MM-DD | [@lead-valuer] | First draft with DCF and trading comparables |
| 0.2 | YYYY-MM-DD | [@lead-valuer] | Precedent transactions, sensitivity and reconciliation added |
| 1.0 | YYYY-MM-DD | [@engagement-partner] | Issued |
Contents
1. Summary of conclusion
| Item | Conclusion |
|---|
| Interest valued (Example) | 100% of the ordinary equity of Halvard Tools, standalone, no synergies |
| Standard and premise of value (Example) | Market value, going concern, minority marketable equivalent |
| Valuation date (Example) | 2026-12-31 |
| Concluded range (Example) | EUR 38.40 to EUR 45.20 per share (EUR 4,608m to EUR 5,424m for 100%) |
| Point estimate (Example) | EUR 41.50 per share (EUR 4,980m for 100% of equity) |
| Reference market price (Example) | EUR 42.00 close on 2026-12-31 (market capitalisation EUR 5,040m) |
| Control value reference (Example) | EUR 47.12 to EUR 51.15 per share from precedent transactions, shown separately in section 10 |
Key judgements (Example):
- The forecast assumes revenue growth of 5.0% falling to 3.0% and an EBITDA margin recovering from 15.0% to 17.5% by 2029E as two plant closures and price increases take effect (section 7).
- The discount rate is a WACC of 8.04% (cost of equity 8.5%, target debt weight 10%) with terminal growth of 2.0% (section 8).
- The terminal value is 76.6% of enterprise value, so the conclusion is most sensitive to the WACC and terminal growth pair (section 12).
- Trading comparables at the median NTM EV/EBITDA of 11.5x imply EUR 44.81, 14.0% above the DCF value of EUR 39.30; the gap reflects a market that prices more margin recovery, or a higher terminal multiple, than the base case (sections 9 and 13).
2. Engagement and purpose
| Field | Entry |
|---|
| Engaging party (Example) | Board of directors of Halvard Tools |
| Intended users (Example) | Board and its advisers only |
| Purpose (Example) | Assess the standalone value of the company to frame the board's response to an indicative, non-binding approach |
| Use not permitted | [Any other purpose, any third party, any offering document] |
| Terms of engagement reference | [Engagement letter ID and date] |
| Fee basis | [Fixed fee, not contingent on the conclusion] |
| Applicable standards | [IVS effective 2025-01-31; professional body rules; IFRS 13 or ASC 820 where the purpose is financial reporting] |
| Related regulatory context | [For example, a fairness opinion issued by a US broker-dealer is subject to FINRA Rule 5150; takeover rules of the listing jurisdiction] |
Describe the decision the report supports in two or three sentences. Say what the valuation does not do, for example that it is not a fairness opinion, does not consider the price or terms of any offer, and does not recommend acceptance or rejection.
For an offer assessment (Example), the board should read the standalone value in section 13 together with the control value reference in section 10: a bidder pays for control and for synergies it expects to capture, so an offer can sit above the standalone range and still undervalue the company to that bidder. A fairness opinion on the offer terms is a separate engagement with its own scope and, where a broker-dealer issues it, its own rules.
3. Subject, standard and premise of value
3.1 Subject
| Field | Entry |
|---|
| Legal entity (Example) | Halvard Tools (fictional), listed on [Exchange], ticker [Ticker] |
| Business (Example) | Design and manufacture of power tools, hand tools and accessories for professional trades and retail customers |
| Reporting framework (Example) | IFRS, functional currency EUR, financial year = calendar year |
| Share capital (Example) | 120.0m diluted ordinary shares (treasury shares excluded, in-the-money options included under the treasury stock method) |
| Rights attached | [Voting, dividend, transfer restrictions, shareholder agreements] |
3.2 Standard of value
Choose one standard and define it in the report's own words with a reference to its source:
| Standard | Typical use | Source to cite |
|---|
| Market value | General purpose, lending, transactions | IVS 102 Bases of Value |
| Fair value (financial reporting) | Measurement under accounting standards | IFRS 13 Fair Value Measurement; FASB ASC Topic 820 |
| Fair market value | US tax and some legal contexts | [Applicable tax authority guidance] |
| Investment value | Value to a specific owner or buyer, including synergies | IVS 102 Bases of Value |
| Equitable or fair value (legal) | Shareholder disputes | [Statute or case law of the jurisdiction] |
3.3 Premise and level of value
| Field | Entry |
|---|
| Premise (Example) | Going concern, current use, standalone |
| Level of value (Example) | Minority marketable equivalent (consistent with the quoted price and trading multiples) |
| Synergies (Example) | Excluded; no buyer-specific benefits |
| Control premium or minority discount (Example) | None applied to the conclusion; control value shown for reference only |
| Marketability adjustment (Example) | None; the shares are listed and liquid |
4. Scope, information sources and limitations
| ID | Source | Date or period | Reliance and checks |
|---|
| SRC-001 (Example) | Audited consolidated financial statements | FY2024 to FY2026 | Agreed to the model; audit opinion unmodified. The report is issued after the FY2026 audit opinion dated [YYYY-MM-DD]; at the valuation date only the preliminary FY2026 results were known, and the audited figures did not differ from them |
| SRC-002 (Example) | Management five-year plan approved by the board | Approved 2026-11-19 | Tested against history and peer growth (section 7) |
| SRC-003 (Example) | Market data for peers and risk-free rate | Close 2026-12-31 | From [data vendor], spot-checked to company filings |
| SRC-004 (Example) | Precedent transaction announcements | 2023 to 2025 | Public announcements and target filings |
| SRC-005 (Example) | Management interviews | 2026-12-07 and 2026-12-09 | Minutes in the working file |
Scope limitations to disclose:
- Information not provided or not verified, and the effect on the conclusion.
- Site visits not performed, or performed only at selected locations.
- Data cut-off date and any events after the valuation date that were or were not considered.
- Reliance on specialists (property, pensions, intellectual property) and their reports.
- Use of automated tools or AI models in data gathering or drafting, and the human review applied to their output.
5. Business and industry analysis
5.1 Business overview
| Item | Description (Example) |
|---|
| Segments | Power tools, mostly cordless (45% of revenue), hand tools (40%), accessories (15%) |
| Geography | Europe 60%, North America 30%, rest of world 10% |
| Channels | Professional trade through dealers and distributors 55%, retail (home-improvement chains and online) 45% |
| Customers | Top 10 customers 32% of revenue; largest single customer, a home-improvement chain, 8% |
| Operations | Nine plants, two of which close by 2028 under the footprint plan; battery cells purchased from two suppliers |
| Employees | About 14,000 |
| Management and governance | [Board composition, key people, succession risk] |
5.2 Industry and competitive position
Describe market size and growth in the subject's segments, the cyclical drivers (construction activity, industrial production, housing renovation), the competitive structure, pricing power and the substitution risk. For each point, name the source and the date, and state the link to a forecast assumption or to a risk premium.
| Driver | Evidence | Link to valuation |
|---|
| Construction cycle (Example) | [Index or survey, date] | Revenue growth 2027E to 2028E |
| Cordless platform adoption (Example) | [Market study, date] | Mix shift and margin path |
| Raw material and battery cell prices (Example) | [Commodity data, date] | Gross margin risk, scenario B |
| Tariffs and trade policy (Example) | [Official source, date] | Downside scenario, North America |
5.3 Strengths, weaknesses and key risks
List no more than five of each, written as facts or evidenced judgements. Each risk should map to a sensitivity or scenario in section 12, or to a reason why it is not modelled.
6. Historical financial analysis and normalisation
6.1 Historical summary (EUR m)
| Line | FY2024 (Example) | FY2025 (Example) | FY2026 (Example) |
|---|
| Revenue | 2,700.0 | 2,860.0 | 3,000.0 |
| Reported EBITDA | 432.0 | 438.3 | 430.0 |
| Normalisation adjustments | 0.0 | 5.0 | 20.0 |
| Normalised EBITDA | 432.0 | 443.3 | 450.0 |
| Normalised EBITDA margin | 16.0% | 15.5% | 15.0% |
| Depreciation and amortisation | 94.5 | 100.1 | 105.0 |
| Normalised EBIT | 337.5 | 343.2 | 345.0 |
| Capital expenditure | 108.0 | 114.4 | 120.0 |
| Net working capital at year end | 405.0 | 429.0 | 450.0 |
6.2 Normalisation adjustments
| ID | FY | Item | Amount (EUR m) | Rationale | Source |
|---|
| ADJ-001 (Example) | FY2026 | Plant closure costs (two plants) | 15.0 | Restructuring under an approved, time-bound plan; cash costs end in 2028 | Note 7, FY2026 report |
| ADJ-002 (Example) | FY2026 | Litigation settlement | 5.0 | Single case, closed | Board minutes 2026-09-14 |
| ADJ-003 (Example) | FY2025 | Acquisition costs | 5.0 | Transaction specific | Note 30, FY2025 report |
6.3 Balance sheet items and the equity bridge
Identify every item that sits between enterprise value and equity value at the valuation date: borrowings, cash (net of trapped or operating cash), lease liabilities (consistent with whether EBITDA is before or after lease costs), pension deficits, provisions that behave like debt, non-controlling interests, associates and non-operating assets.
| Item at 2026-12-31 (Example) | EUR m | Treatment |
|---|
| 5.25% senior notes due 2031 | 400.0 | Deduct |
| Bank loans | 100.0 | Deduct |
| Lease liabilities (IFRS 16) | 150.0 | Deduct (EBITDA is before lease costs) |
| Cash and equivalents | (50.0) | Add back (all treated as excess cash) |
| Net debt including leases | 600.0 | Deduct from EV |
| Pension deficit, non-controlling interests, associates | 0.0 | None material at the valuation date |
| Total EV to equity adjustments | 600.0 | Deduct from EV |
Match every bridge item to the definition of the cash flows. Because EBITDA here is before lease costs, the lease liability is a debt-like item; a report that deducts leases but values EBITDA after rent counts the same cost twice. Treat cash as excess only after setting aside the operating cash the business needs to trade (the example assumes all EUR 50m is excess; many valuers hold back 1% to 2% of revenue). Use balances at the valuation date, not at the last reporting date, and adjust for dividends declared but unpaid, closure provisions that will be paid in cash and any earn-outs owed on past acquisitions.
7. Forecast and key assumptions
Conventions: EUR millions, financial year ending 31 December, nominal terms, end-of-year cash flows in the worked example (state whether you use a mid-year convention instead).
| Line (EUR m) | 2027E | 2028E | 2029E | 2030E | 2031E |
|---|
| Revenue growth (Example) | 5.0% | 4.8% | 4.0% | 3.5% | 3.0% |
| Revenue (Example) | 3,150.0 | 3,301.2 | 3,433.2 | 3,553.4 | 3,660.0 |
| EBITDA margin (Example) | 16.5% | 17.0% | 17.5% | 17.5% | 17.5% |
| EBITDA (Example) | 519.8 | 561.2 | 600.8 | 621.8 | 640.5 |
| D&A at 3.5% of revenue (Example) | 110.3 | 115.5 | 120.2 | 124.4 | 128.1 |
| EBIT (Example) | 409.5 | 445.7 | 480.7 | 497.5 | 512.4 |
| Assumption | Value (Example) | Basis | Test performed |
|---|
| Revenue growth | 5.0% to 3.0% | Management plan, adjusted down 0.5 points in 2028E | Close to the two-year history (5.4% CAGR FY2024 to FY2026); peer median NTM growth 5.5% |
| EBITDA margin | 16.5% to 17.5% | Price increases and two plant closures | Above the FY2024 level of 16.0% by 2027E (16.5%), then a further 1.0 point from plant savings to 17.5% by 2029E; peer median NTM margin 15.0%; savings evidenced by the closure plan |
| Capital expenditure | 4.0% of revenue | Plan | Above D&A (3.5%) in every year, consistent with growth |
| Net working capital | 15% of revenue | Three-year level | Stable at 15.0% in FY2024 to FY2026 |
| Tax rate | 25% | Blended statutory rate | Effective rate FY2026 25.0% |
8. Income approach: discounted cash flow
8.1 Free cash flow to the firm
FCFFt=EBITt×(1−T)+D&At−CapExt−ΔNWCt | EUR m | 2027E | 2028E | 2029E | 2030E | 2031E |
|---|
| EBIT (Example) | 409.5 | 445.7 | 480.7 | 497.5 | 512.4 |
| Tax at 25% (Example) | (102.4) | (111.4) | (120.2) | (124.4) | (128.1) |
| NOPAT (Example) | 307.1 | 334.2 | 360.5 | 373.1 | 384.3 |
| Add D&A (Example) | 110.3 | 115.5 | 120.2 | 124.4 | 128.1 |
| Less capital expenditure (Example) | (126.0) | (132.0) | (137.3) | (142.1) | (146.4) |
| Less increase in NWC (Example) | (22.5) | (22.7) | (19.8) | (18.0) | (16.0) |
| FCFF (Example) | 268.9 | 295.1 | 323.5 | 337.3 | 350.0 |
| Discount factor at 8.04% (Example) | 0.9256 | 0.8566 | 0.7929 | 0.7338 | 0.6792 |
| Present value (Example) | 248.9 | 252.8 | 256.5 | 247.5 | 237.7 |
Sum of present values 2027E to 2031E (Example): EUR 1,243.4m. The model computes each line before rounding, so a column may differ from the sum of its rounded rows by 0.1.
8.2 Discount rate
ke=rf+β×ERP+[size or specific premium, if justified] WACC=D+EE×ke+D+ED×kd×(1−T) | Input | Value (Example) | Source and date |
|---|
| Risk-free rate | 3.0% | [Long-dated government bond yield in the cash flow currency, 2026-12-31] |
| Equity beta (relevered) | 1.10 | Median unlevered peer beta, relevered at the target debt weight; [regression window and index] |
| Equity risk premium | 5.0% | [Source, method and date] |
| Size or company-specific premium | 0.0% | Not applied; the forecast already reflects company risks |
| Cost of equity | 8.5% | 3.0% + 1.10 x 5.0% |
| Pre-tax cost of debt | 5.25% | Yield on the 5.25% senior notes due 2031, trading close to par at the valuation date |
| Tax rate | 25% | Section 7 |
| After-tax cost of debt | 3.94% | 5.25% x (1 - 0.25) = 3.9375% |
| Target debt weight D/(D+E) | 10% | Close to the market weight (600 / 5,640 = 10.6%) and peer median |
| WACC | 8.04% | 0.90 x 8.5% + 0.10 x 3.9375% = 8.044% |
Document any country risk premium, currency adjustment (inflation differential between the cash flow currency and the discount rate currency) and the reason for any premium not captured in beta.
8.3 Terminal value
TVN=WACC−gFCFFN+1 | Item | Value (Example) |
|---|
| Terminal growth g | 2.0% (at or below long-term nominal growth expectations in the main markets) |
| FCFF in 2032 (revenue +2.0%, margin 17.5%, NWC on incremental revenue) | EUR 362.3m |
| Terminal value at end of 2031 | EUR 5,995.3m |
| Present value of terminal value (x 0.6792) | EUR 4,072.1m |
| Implied exit multiple of 2031E EBITDA | 9.4x |
| Exit multiple cross-check at 11.0x 2031E EBITDA | EUR 45.24 per share |
Check that terminal year capital expenditure exceeds depreciation by enough to fund the assumed growth, and that the implied exit multiple sits within the range of trading multiples in section 9. In the example the implied 9.4x sits below the peer range (10.4x to 15.6x NTM): record the reason (peer multiples embed growth above 2.0% in perpetuity, or the market is pricing more recovery) and show the exit multiple cross-check alongside.
8.4 Enterprise value to equity value
| Item | EUR m (Example) |
|---|
| PV of explicit cash flows | 1,243.4 |
| PV of terminal value | 4,072.1 |
| Enterprise value (computed before rounding) | 5,315.4 |
| Terminal value share of EV | 76.6% |
| Less EV to equity adjustments (section 6.3) | (600.0) |
| Equity value | 4,715.4 |
| Diluted shares (m) | 120.0 |
| Value per share | EUR 39.30 |
9. Market approach: trading comparables
The full peer analysis is in Comparable Companies Analysis (finance/comparable-companies-analysis), document [CCA-2026-001]. Summary at 2026-12-31 (Example):
| Multiple | Peer 25th percentile | Peer median | Peer 75th percentile | Halvard metric | Implied value per share at median |
|---|
| EV / NTM EBITDA | 10.9x | 11.5x | 12.2x | EUR 519.8m (2027E) | EUR 44.81 |
| EV / NTM EBIT | 14.2x | 14.7x | 15.7x | EUR 409.5m (2027E) | EUR 45.10 |
| P / NTM EPS | 17.6x | 18.0x | 18.8x | EUR 2.38 (2027E) | EUR 42.92 |
Implied equity value=Multiple×Metric−EV to equity adjustments Selected method (Example): EV / NTM EBITDA, because peers differ in depreciation policy and leverage. Interquartile range EUR 42.21 to EUR 47.84 per share. One peer (Ostrand Fastening, 15.6x) is retained but flagged as an outlier; without it the median is 11.2x and implies EUR 43.51.
10. Market approach: precedent transactions
| ID | Target (fictional) | Year | EV (EUR m) | LTM EBITDA (EUR m) | EV / LTM EBITDA | One-day premium |
|---|
| PT-001 (Example) | Arnhild Tooling | 2023 | 1,540 | 110 | 14.0x | 31% |
| PT-002 (Example) | Breckan Abrasives | 2024 | 947 | 64 | 14.8x | 24% |
| PT-003 (Example) | Quillon Hand Tools | 2024 | 3,100 | 200 | 15.5x | 29% |
| PT-004 (Example) | Severin Measuring | 2025 | 2,067 | 152 | 13.6x | 22% |
| Median | | | | | 14.4x | 26.5% |
Applied to Halvard FY2026 normalised EBITDA of EUR 450.0m, the interquartile range of 13.9x to 15.0x and the median of 14.4x imply EUR 47.12 to EUR 51.15 per share, median EUR 48.99 (Example). Because the interest valued is standalone and minority marketable equivalent (section 3.3), this range is shown as a control value reference and is not weighted in the conclusion.
11. Asset approach
| Item | EUR m (Example) |
|---|
| Book value of equity attributable to owners at 2026-12-31 | 1,800.0 |
| Book value per share | EUR 15.00 |
| Price to book at the concluded point value | 2.8x |
Conclusion (Example): the asset approach is not used to conclude value because the business earns returns above its cost of capital (ROE 13.1% against an 8.5% cost of equity) and its value lies in intangible capabilities (brand, platform, distribution). Book value per share serves as a floor reference only.
12. Sensitivity and scenario analysis
12.1 DCF value per share: WACC and terminal growth (EUR)
| WACC \ g (Example) | 1.5% | 2.0% | 2.5% |
|---|
| 7.54% | 40.32 | 43.37 | 47.02 |
| 8.04% | 36.78 | 39.30 | 42.26 |
| 8.54% | 33.74 | 35.85 | 38.30 |
12.2 Scenarios
| ID | Scenario | Key changes | Value per share | Weight |
|---|
| SCN-A (Example) | Base | Section 7 forecast | EUR 39.30 | Not weighted; base case used |
| SCN-B (Example) | Margin squeeze | Battery cell cost shock, EBITDA margin flat at 15.0% to 2031E and in the terminal year; revenue as in the base case | EUR 30.89 | Disclosed only |
| SCN-C (Example) | Downturn | Revenue -5% in 2027E and flat in 2028E, then +5.0%, +4.0% and +3.0%; margin 14.0%, 15.0%, 16.5%, 17.0% and 17.5% | EUR 33.31 | Disclosed only |
Both scenarios use the base WACC of 8.04%, terminal growth of 2.0% and the same capital expenditure, D&A and working capital ratios as the base case (Example). Neither is covered by the concluded range of EUR 38.40 to EUR 45.20: the conclusion assumes the plant savings are delivered, and the board should read SCN-B as the value if they are not. Record for each scenario the narrative, the trigger that would make it more likely, and whether the concluded range covers it. A scenario that changes one driver without the drivers that move with it (for example lower revenue with unchanged working capital) understates the effect; change the linked drivers together and say which ones you held constant.
13. Reconciliation and conclusion of value
| Method | Range per share | Point | Weight | Reason |
|---|
| DCF (Example) | EUR 35.85 to EUR 43.37 (WACC plus or minus 0.5 points) | EUR 39.30 | 60% | Forecast tested, company-specific drivers captured |
| Trading comparables (Example) | EUR 42.21 to EUR 47.84 (interquartile) | EUR 44.81 | 40% | Five listed peers, liquid, consistent definitions |
| Precedent transactions (Example) | EUR 47.12 to EUR 51.15 | EUR 48.99 | 0% | Control level; reference only |
| Asset approach (Example) | EUR 15.00 | n/a | 0% | Floor only |
| Weighted (Example) | EUR 38.40 to EUR 45.16 | EUR 41.50 | 100% | Point: 0.6 x 39.30 + 0.4 x 44.81; range: same weights applied to the lows and highs |
Conclusion (Example): the market value of 100% of the ordinary equity of Halvard Tools as at 2026-12-31, on a standalone, minority marketable equivalent basis, lies in the range EUR 38.40 to EUR 45.20 per share (high end rounded), with a point estimate of EUR 41.50 per share (EUR 4,980m in total, 120.0m diluted shares). The quoted price of EUR 42.00 lies inside the range. The DCF carries more weight because its inputs are tested against the plan; the higher comps value is a signal that the market expects more margin recovery than the base case, which the reader should weigh against the scenarios in section 12.
14. Assumptions and limiting conditions
General assumptions (Example):
- The financial statements and plan provided are complete and accurate in all material respects.
- No undisclosed liabilities, litigation or environmental obligations exist beyond those in the financial statements.
- The company operates as a going concern under current management policies.
- Laws, tax rates and trade policy in force at the valuation date continue unless stated.
Special assumptions (Example):
| ID | Special assumption | Effect if not true |
|---|
| SA-001 | Both plant closures complete by the end of 2028 as planned | Margin path in 2028E to 2029E delayed |
| SA-002 | The EUR 100m bank facility due 2028 is refinanced at similar terms | Cost of debt and equity risk higher |
Limiting conditions: the report is valid only at the valuation date and for the stated purpose; it must be read in full; no responsibility is accepted to third parties; values may change materially after the valuation date.
15. Valuer statement and independence
| Statement | Entry |
|---|
| Valuer and firm | [Name, qualification, firm] |
| Standards complied with | [IVS effective 2025-01-31 / professional body standards / other], with departures listed: [None or list] |
| Independence | [No financial interest in the subject; no prior engagement in the last n years, or details] |
| Fee | [Fixed, not contingent on value or outcome] |
| Use of specialists | [Name, scope, reliance] |
| Use of automated tools or AI | [Tools used, purpose, human review performed] |
| Signature | [Name], [Role], YYYY-MM-DD |
16. Quality review and assumptions log
16.1 Reviewer checklist
| ID | Check | Result |
|---|
| QR-001 | Purpose, standard and level of value consistent across sections 2, 3, 9, 10 and 13 | [Pass / Finding] |
| QR-002 | Model recomputes every table in this report; no hard-coded overrides | [Pass / Finding] |
| QR-003 | Cash flows, discount rate and growth all nominal and in the same currency | [Pass / Finding] |
| QR-004 | EV to equity bridge agrees to the balance sheet at the valuation date | [Pass / Finding] |
| QR-005 | Implied exit multiple and terminal growth plausible against peers and macro outlook | [Pass / Finding] |
| QR-006 | Sources dated and retained; licensed data used within licence terms | [Pass / Finding] |
The reviewer should recompute the conclusion from the report alone before reading the model, then trace any difference. The most frequent findings are a WACC built on a debt weight that differs from the bridge, a terminal year that still contains growth capital expenditure or a margin above the explicit forecast, mid-year and end-year conventions mixed between the DCF and the exit multiple cross-check, and a section 1 summary that was not updated after a late change of inputs.
16.2 Assumptions log
| ID | Input | Value | Owner | Source | Date | Sensitivity rank |
|---|
| AS-001 (Example) | Equity risk premium | 5.0% | [@lead-valuer] | [Source] | 2026-12-31 | 2 |
| AS-002 (Example) | Terminal growth | 2.0% | [@lead-valuer] | [Macro source] | 2026-12-31 | 1 |
| AS-003 (Example) | Target debt weight | 10% | [@lead-valuer] | Market weight and peer median | 2026-12-31 | 4 |
| AS-004 (Example) | 2029E EBITDA margin | 17.5% | Management, accepted | Plan p. 14 | 2026-11-19 | 3 |
17. Glossary and references
17.1 Glossary
| Term | Meaning |
|---|
| DCF | Discounted cash flow: value equals the present value of expected future cash flows |
| FCFF | Free cash flow to the firm, available to all capital providers after tax, reinvestment and working capital |
| WACC | Weighted average cost of capital, the blended required return of debt and equity holders |
| CAPM | Capital asset pricing model, used to estimate the cost of equity from beta and the equity risk premium |
| ERP | Equity risk premium: expected market return above the risk-free rate |
| EV | Enterprise value: value of operations available to all capital providers |
| LTM / NTM | Last twelve months / next twelve months |
| Level of value | Whether a value reflects a controlling or minority interest, and whether it is marketable |
| Special assumption | An assumed fact that differs from the actual facts at the valuation date |
| Terminal value | Value of cash flows beyond the explicit forecast period |
17.2 References
| Reference | Version or date | Use |
|---|
| International Valuation Standards (IVSC) | Effective 2025-01-31; IVS 102 Bases of Value, IVS 103 Valuation Approaches, IVS 104 Data and Inputs, IVS 105 Valuation Models, IVS 106 Documentation and Reporting, IVS 200 Businesses and Business Interests (numbers and names only) | Structure and documentation expectations |
| IFRS 13 Fair Value Measurement | Names and numbers only | Financial reporting purpose |
| FASB ASC Topic 820, Fair Value Measurement | Topic number only | US GAAP purpose |
| FINRA Rule 5150 (Fairness Opinions) | Rule number only | When a broker-dealer issues a fairness opinion |
Comparable Companies Analysis (finance/comparable-companies-analysis) | [CCA-2026-001] | Trading multiples |
| [Data vendor, risk-free rate source, ERP source] | [Dates] | Inputs |
Standard and licence note
Structure aligned with the International Valuation Standards (IVSC,
effective 2025-01-31), cited by standard number and name only, with
references to IFRS 13 and FASB ASC Topic 820 by name and number only and
to FINRA Rule 5150 by number only. No text from these standards is
reproduced or paraphrased; the headings, guidance and worked example are
original. The DCF, CAPM and WACC formulas are standard finance methods
expressed in our own notation. Halvard Tools, its peers and the
precedent transactions are fictional, and all figures are invented for
illustration; nothing here is a view on any real security. Check the
current official versions of the standards and any rules that apply to
your purpose and jurisdiction before use. This is a document format, not
financial, investment, tax, legal or accounting advice. Template
licence: MIT.