Four valuation standards – and why the choice changes the result.
The same shareholding. Two different values.
The new expert opinion KFS/BW 1 (the Austrian professional standard for business valuation) distinguishes four valuation standards. It applies to engagements accepted after 30 June 2026 (Rz 1; Rz = margin number).
The first question is therefore not “What is it worth?” – but: Which value is meant?
- Objectivised business value
- Market value
- Typified subjective business value
- Arbitration value
Objectivised value: without discounts.
It applies where interests are opposed and equal treatment is required (Rz 17).
- Financial control assumed – irrespective of the size of the shareholding (Rz 17)
- Pro rata value – minority discounts and majority premiums are not permitted (Rz 137)
- No marketability discount – permanent holding is assumed (Rz 136)
Method: Capitalised earnings or DCF method, plausibility-checked in particular against the market approach (Rz 50).
Market value: the realistic price.
New in the expert opinion: the expected price between independent parties on the valuation date (Rz 19).
- Real market conditions – influence on corporate policy also counts (Rz 21)
- Premiums and discounts – customary in the market, including marketability risk (Rz 147, 149)
- Market prices first – otherwise capitalised earnings/DCF and multiples in parallel (Rz 51)
Concept: An exchange value: a sale on the valuation date is assumed (Rz 21, 139).
Often overlooked: The purpose decides.
Allocation under KFS/BW 1 E 9
Compensation on exit (§ 2 GesAusG (Austrian Squeeze-out Act), § 137 UGB (Austrian Commercial Code)): objectivised value. Compulsory portion (§§ 778 et seq. ABGB (Austrian Civil Code)): market value.
Check contracts
Compensation clauses in the articles of association may set their own requirements for the valuation.
The valuation standard belongs in the engagement – before the first calculation (Rz 190).
A 20% shareholding, two results
Fictitious worked example
Value of equity: €10.0 million. Pro rata shareholding: €2.0 million.
Objectivised value
pro rata, without discounts
2.00 million
Market value
assuming −10% minority, −35% marketability
1.17 million
Over 40% difference – from the standard alone
Freely chosen figures for illustration, not an actual engagement. Discounts multiplicative: 2.0 × 0.90 × 0.65.
Clarify the standard first, then value.
Which valuation standard fits your purpose? We will discuss it with you in a free initial consultation.