FAQ
FAQ
NSCF is owned by partners who have generated years of experience not only in corporate finance but in various industry sectors having worked in those sectors as CEO’s or CFO’s and later supported those sectors in the area of corporate finance.
How do I sell my company?
Depending on the size and products of the company, we can look for international buyers as well as local buyers.
What is EBITDA?
EBITDA is short for Earnings Before Interest Tax Depreciation and Amortization.
Why are Valuations based on a multiple of EBITDA?
EBITDA is operational cash flow before taxes and interest. Valuations calculated as multiples of EBITDA are convenient to compare since different countries have different tax policies and interest rates and a buyer might also be able to influence the future interest and tax payments.
Is a multiple of EBITDA the best way to Value a company?
It is the easiest way to Value a company, however, a more accurate way to Value a company is by discounted cash flows, which also take into consideration cash used for capital expenditures.
What is better? acquisition or green field investment?
A green field investment has the advantage of not acquiring any historical undisclosed risks and it is created exactly how the Client wants. However, it takes more time to get results than an acquisition which has as its advantages assets, including existing labor, existing customers, existing partnerships, relationships and local market recognition.
How to mitigate acquisition risks?
The most common way to mitigate acquisition risks is by transferring those risks to the Seller through legal documents. For further safety it is possible to acquire the assets without acquiring the company in an Asset Deal.
What are the advantages of entering a new market in Central and Eastern Europe?
Central and Eastern Europe have a highly educated and relatively cheap work force. Their industries are more upstream compared to Western Europe and therefore might be better at manufacturing or any more labor-intensive production.
Is it safe to invest in Eastern Europe?
One must distinguish 3 groups of Eastern European countries, EU members, Russia and others. The EU member countries abide by EU law and transparent EU court systems. Russia’s legal system is one to avoid if necessary and to do that, we recommend staying away from politically strategic businesses in Russia (i.e. energy). And if your investment is of significant size, then it might be beneficial to have a multinational development bank as an equity partner. All other countries in the region have their own particular political and economic risks that should be examined.
Are there foreign currency risks?
Yes, it is important to be aware of currency risks and to hedge against them.
Is it difficult to find local management?
There is an abundance of highly educated multilingual experienced managers all over Central and Eastern Europe as well as a very motivated young population.
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Major Sectors
Transport & Logistics
Automotive
Mechanical engineering
Consumer goods
Technology & IT
Financial Industry
National ressources
Unique understanding of the local economy
Specialized Channel for Germany Central Europe and CIS
Member of Geneva Capital Group with presence in over 30 countries
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