Corporate Finance · Turkey

Selling a company
in Turkey?
Valuing your Turkish business?

Kapital Finans is a London-based corporate finance advisory specialised in Turkish companies. We value businesses in both Turkish lira and US dollars, prepare them for sale, investment and bank financing, and translate Turkish accounting records into the language international buyers, lenders and boards read.

Request a consultation → How we value Services
Our method
  • Discounted cash flowWith a year-by-year, inflation-linked discount rate path
  • 5,000-run Monte CarloA probability distribution, not a single number
  • The lender's viewDebt service capacity, borrowing headroom and the binding constraint
  • Multifractal market analysisHurst exponents and MF-DFA for the structure of risk
01 / Why a specialist

A Turkish company needs a Turkish lens
and an international standard.

Valuing a company in Turkey is not the same exercise as in a low-inflation economy. Reported figures move with high inflation and the exchange rate; a statement that looks profitable in lira may tell a different story in dollars. Interest rates, the country risk premium and sector conditions change quickly, and much of the detail sits in the Turkish trial balance (mizan) under the national uniform chart of accounts.

We read those records directly, test them for consistency, and rebuild the company's earning power on a comparable basis. The result is a valuation range expressed in both TRY and USD, with every assumption written down and every figure traceable to its source. That gives a foreign buyer, a bank or an investment committee a documented basis to use in a negotiation.

01

Sellers

Defend the price on future cash flow, not on machinery or past turnover; arrive with a range and a sale file.

02

Buyers

See whether the asking price is reasonable: comparable multiples, Borsa Istanbul sector data and sensitivity analysis side by side.

03

Boards and lenders

Debt capacity, covenant headroom and an early-warning score, measured before the bank asks.

02 / Services

Advisory for every stage
of your capital.

I

Company Valuation

Independent valuation reports for sales, acquisitions, partner entry, shareholder agreements and investment decisions, using discounted cash flow, multiples and net asset value, reconciled across methods.

DCF / Multiples / Net Assets
II

Buying and Selling in Turkey

For domestic and foreign investors: valuation in TRY and USD, conversion of Turkish accounting records into an international reading, an information memorandum and support through the negotiation.

Sale / Acquisition / Foreign Investor
III

Outsourced CFO Support

Finance director support for your decisions: valuation, credit preparation, cash planning, debt restructuring and preparation for bank and investor meetings. You make the decision; we prepare its basis.

Valuation / Credit / Cash
IV

Corporate Finance

Capital structure, debt restructuring, financial models for funding and investor presentation packs.

Capital / Restructuring / Modelling
V

Quantitative Research

Multifractal market models, volatility analysis and macro-micro integration for family offices and fund managers.

MF-DFA / Hurst / Volatility
VI

Risk Advisory

Measurement of market, credit and operational risk; scenario and stress testing built into investment and financing decisions.

Stress Test / Scenario / Covenant
03 / Method

The formula comes before the claim.

Every result in our reports rests on an explicit formula and on data with a stated source. The main methods we use:

∑

Discounted Cash Flow

Enterprise value is the present value of future free cash flows and the terminal value, discounted with the mid-year convention at a rate that changes year by year. Turkey's inflation path is built into the discount rate, and the value is read in both TRY and USD.

EV = Σ FCFFt / Dt + TV / DN ,  Dt = Πk≤t(1 + WACCk)
β

Cost of Capital

The cost of equity combines the risk-free rate, beta and an equity risk premium that includes country risk; small company and liquidity premia are added where justified. Beta is a sector beta estimated by quantile regression on Borsa Istanbul panel data, following Aygören and Uyar (2016).

Ke = Rf + β · ERPTR + additional premia
P

Monte Carlo Simulation

Growth, margin and discount rate are varied together 5,000 times; the result is a value distribution with its median and the P10 to P90 range. Tornado charts and a growth by discount-rate matrix show sensitivity.

P10 · median · P90 (n = 5,000)
D

Debt Service Capacity

The lender's view: cash flow available for debt service, the debt service coverage ratio, borrowing capacity and its binding constraint, maturity scenarios and covenant compliance.

DSCR = CFADS / (principal + interest)
Z

Early Warning

The Altman Z-score combines liquidity, profitability and leverage into a single financial distress indicator. The private-company Z′ model or the non-manufacturing Z″ model is selected according to company type.

Z′ = 0.717X1 + 0.847X2 + 3.107X3 + 0.420X4 + 0.998X5
H

Multifractal Analysis

MF-DFA measures how volatility behaves across time scales; generalised Hurst exponents reveal the fat tails and regime shifts that classical models miss.

Fq(s) ∝ sh(q)
04 / VALOR

The company report card:
the whole story, not one number.

VALOR is the platform we built to bring our valuation work under one methodology, one formula set and one quality gate. Starting from the trial balance and financial statements, it produces a report of around 100 pages in 13 main chapters: value range, lender's view and borrowing capacity, three-scenario ten-year projection, Monte Carlo robustness, sector comparison with Central Bank of Turkey data, risk map and a value creation roadmap. Every figure shows its source and formula, and the key valuation parameters are not published without expert approval. Reports are produced in Turkish; the key findings are summarised and discussed in English.

Platform 01

VALOR

Company Report Card and Valuation

Valuation range in TRY and USD, debt service coverage and borrowing capacity, 5,000-run Monte Carlo, tornado sensitivity, Altman Z early warning, investor exit scenario and dividend capacity.

VALOR in detail →
Platform 02

AKIŞ

Cash, Cheque and Payment Tracking

Cheques, promissory notes, loan and lease instalments and recurring payments on one cash calendar, with a 13-week cash flow, a minimum cash threshold warning and foreign currency items consolidated at Central Bank of Turkey rates.

Learn more (Turkish interface) →
05 / Team

The people behind the report.

HK

Dr. Hakan Kılıç

MSc Software Engineer
  • RoleTechnology Director · MSc Software Engineer
  • LocationUnited Kingdom (England)
  • ExpertiseWeb · Desktop · Databases · Financial Software

A UK-based technology director with long experience in software engineering. He has worked on many large-scale web and desktop applications, database architectures and enterprise financial software systems, and specialises in turning complex financial models into reliable, scalable software. His careful, solution-oriented approach forms the technical backbone of the team.

Let's talk
about your company.

Whether you are selling, buying, bringing in a partner or simply want an independent second opinion on a Turkish company, contact us. All initial conversations are confidential.

Email
info@kapitalfinans.com
Phone
+90 532 669 48 68
Office
London
87 Millmead Business Center, Millmead Road, London, N17 9QU
Initial consultation

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