What the revised KFS/BW 1 (the Austrian professional standard for business valuation) requires.
One business, several values?
Anyone comparing two valuations of the same business will often find different figures.
This is rarely due to a calculation error – but rather to the method, the assumptions and the occasion of the valuation.
Which method suits which occasion?
The capitalised earnings method
- Basis: surpluses to the owners. The results that will flow to the owners in future are discounted.
- Revised KFS/BW 1: The professional standard applies to engagements accepted from 1 July 2026.
- Common in proceedings: For example, in court-appointed expert opinions, divorces and shareholder disputes.
The DCF method
- Basis: free cash flows. Discounted at a cost of capital that reflects the company’s risk.
- Equivalent to capitalised earnings: With identical assumptions, the choice of method does not affect the result.
- Common in transactions: For example, in M&A, fairness opinions and international matters.
Often overlooked
Multiples
For the objectified value, a plausibility check using a market approach is mandatory (para. 50).
Rules of thumb
Industry rules of thumb do not satisfy the professional standard – at most, they serve as a plausibility check (para. 47).
Rule of thumb: The value depends above all on the quality of the financial planning.
From our engagements: manufacturing company, Upper Austria
Valuation of a medium-sized manufacturing business in the context of a management buy-out. Expert opinion in accordance with KFS/BW 1 as a common basis for negotiation between the former owner and the management.
Expert opinion accepted as the basis for negotiation.
Anonymised example. Discretion is our highest priority.
Which method suits your occasion?
In an initial consultation, we will tell you honestly whether and how we can help.