Investing in a non-listed company

When a company invests in other companies, the investment itself matters in a business valuation — not just the core operations.

In practice, we don’t simply take the initial investment cost and stop there.

During valuation, we assess how those invested companies are actually performing.

Think of it as a mark-to-market concept:

• If the invested company performs well, the investment value can be higher than the original cost.
• If performance deteriorates, the investment value may need to be written down.

In many cases, we re-evaluate the investment using standard valuation approaches (e.g. income-based or market-based methods), rather than relying on book value alone.

This ensures the valuation reflects economic reality, not just accounting numbers.

#ORNA #BusinessValuation #DCF