Our International Valuation Newsletter series addresses current hot topics and upcoming themes. While some articles may focus on particular sectors or asset classes, all will have one thing in common: the provision of insights into the development and practical implementation of solutions to common challenges when valuing businesses and business assets. The newsletter is therefore of interest to those involved in valuations for transactions, financing, tax, accounting, restructuring and dispute resolutions, among other areas. It is also highly relevant to academics, lawyers and government or tax authorities.

International Valuations Newsletter – June 2021

Although (some) lockdown measures are still in place, many countries have begun to see signs of hope as large-scale vaccine campaigns progress.

With a renewed focus on the future, we can look forward to the promise of greater workplace flexibility and innovation in remote collaboration. Against this background, we want to celebrate the businesses that innovate, sculpt our future and address some of the world’s greatest challenges head-on: start-ups and early-stage companies.

Valuation of early-stage companies

Start-up founders, entrepreneurs, venture capitalists and state-owned agencies bolstering young businesses are forging the world of tomorrow through innovative products, services and solutions. Their efforts advance our quality of life and make the world a better place. That’s why we’re focusing on early-stage companies in this edition of our Quarterly Brief, where we explore the many ways, they give us hope for a brighter future.

In this newsletter, we address typical questions that arise when valuing early-stage companies:

  • Which methodology should be used to properly capture the value potential of an early-stage company?
  • How is the specific risk profile of early-stage businesses reflected in a valuation, even when they have zero sales or have not yet obtained required regulatory approvals?
  • Is there a way to assess potential value development over time?


Answers to these questions would facilitate more transparent discussions between founders and investors regarding value and price of early-stage companies – allowing for a better allocation of risk and return.

Capital market data

In the final section, we cover the most recent capital market data for selected markets in our usual format. Here are the latest developments at a glance:

  • Major stock market performances: seven out of eleven indices gained more than 50% on a yearly basis. What looks like a tremendous annual return across all indices does not reveal the full picture, however.
  • S&P Eurozone BMI Index sector multiples: most multiples increased further, except for Health Care. This is now the third consecutive quarter of decline, and the multiple reached its  lowest level of the last two years.
  • Risk-free rates: the risk-free rates of all considered currencies increased compared to 31 December 2020.


We look forward to discussing how we could help you assess the potential of your business and the possibilities the future holds. Stay safe, stay healthy.

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