| Abstract [eng] |
Master Thesis studies the subject „Business Valuation in the Context of the COVID-19 Pandemic“. The object of the Thesis is to reveal what challenges the COVID-19 pandemic posed to the business valuation process. The goal of the Thesis is to analyze business valuation methods and evaluate their application in a COVID-19 pandemic situation. The first section of Master’s Thesis analyses the key challenges and issues, which faces the entire business valuation process in the context of the COVID-19 pandemic. The emergence of uncertainty risks is one of the key challenges that valuators must minimize in their valuations in order to properly calculate value. Rapidly changing environment forced by uncertainty creates additional challanges for valuation process. Firstly assumptions today may no longer be actual tomorrow, secondly financial data reliability decreases also valuation methods became more complex and requires additional adjustments. Taking all of these factors into accounts, valuators face challenges, which are not relevant under normal economic conditions. The second section of Master’s Thesis analyses scientific literature, which states that there are three main methods of business valuation: income, market, and asset. In general, there is no single method in the business valuation methodology that is suitable for use in all situations. Therefore, the choice of business valuation method depends on the characteristics of the company being valued and the current economic situation. In the context of the COVID-19 pandemic, valuators have to consider many different options due to the current uncertainty, so even the applicability of standard valuation methods can vary significantly. Each business valuation method has its own specific aspects of use, so due to the risks posed by a pandemic, valuators need to carefully assess the variables and reliably substantiate their assumptions. The third section is dedicated to introduce and describe the Master‘s Thesis research methodology. The research methodology is based on a mixed method strategy, which includes qualitative and quantitative research. Qualitative research is conducted through a semi-structured interview approach of business valuators. Quantitative research analyzes „Novaturas“ case study, which aims to test the application of the income method in the context of a pandemic and calculate the value of the company. The mixed method strategy was selected in order to further disclose the impact of the pandemic on the business valuation process, since this crisis not only affected valuation methodology but also valuators working routine and other related aspects. The fourth section of Master’s Thesis studies begins with the presentation of qualitative research results. The results of the qualitative research provide the valuators answers to the questions asked during the semi-structured interviews. The questions to valuators can be grouped into two main sections, the first one analyzes how the pandemic has affected business valuation methods according respondents experiences and what changes had to be made in order to reliably determine the value of the company. The second part focused on the general experience of valuators in the context of a pandemic with goal to obtain more information and to find new angles to analyze this situation. Most of the valuators responses substantiated the fact that the pandemic affected the business valuation process, but this was not a significant challenge that would pose difficult problems to resolve. The valuation methodology has remained unchanged, but the indicators used to measure the risk of uncertainty must be carefully assessed. In general, valuators have managed to adapt to other difficulties caused by the pandemic, which has only partially affected the provision of assessment services. This section continuous with further analyzes of „Novaturas“ company case study. The case study determined the value of the „Novaturas“ company in two different periods, the first focusing on the current times in 2022 and the second on the peak of the COVID-19 pandemic in 2020. The change in the value of the company during these two different periods is obvious and this reveals the key aspects that need to be taken into account when applying the income approach in the context of a pandemic. The case study confirms the valuators views in the qualitative study that the business valuation methodology has remained unchanged, but additional attention needs to be paid to the variables and assumptions, a correct assessment of these matters makes it possible to determine the value of the company properly. |
