Besides a classical valuation, OMNICAP can also elaborate a valuation formula that can be used as a basis for a transaction. Such a valuation formula is useful in the context of a statutory exit formula and in the event of the establishment of a liquidity program to promote liquidity for the shareholders. In the latter case, the valuation formula replaces an annual valuation.
The advantage of such a valuation formula is its simplicity resulting in less discussion, the predictability of the value and thus the cash planning in case of repurchase programs. The disadvantage of such formulas is that they do not adapt to changing market conditions and therefore sooner or later result in a value that may differ from the market value.
For these reasons, a valuation formula is only useful in the context of a limited liquidity provision, but not in case of the sale of substantial shareholdings or entire companies.