Why do you need a business valuation?
Owner immersed in the day-to-day life of his company, is aware of the evolution of financial figures, the behavior of the client portfolio, negotiating with suppliers, exploring new products or markets, in short, knowledge about the operation of your company.
However, perhaps he does not stop to think if the efforts he makes increase the value of his company, if the management has improved the company, we are not talking about an increase in Equity, but the value that the company would have in the future.
For this reason, there are several reasons why a company is valued, for example:
INTERNAL REASONS
- Know company’s net worth, divorces, dispute between sharholders or partners, litigations.
- Protocolo familiar e implementar política de dividendos.
- Control leverage level.
- Management control.
- Sell-buy shares.
EXTERNAL REASONS
- Sale shares.
- Mergers and acquisitions.
- Leverage Buy Out: LBO, MBO, MBI, BIMBO
- Capital raising.
When do you need a business valuation?
Business valuation can be carried out at any time, it is important that the owner knows value creation of his company in each phase of the life of the company, that he measures the work of the management team or that he needs to value his company for the reasons described above.
How to calculate your business valuation?
There are many method of business valuation as:
Accounting valuation method
- Is a static method, because it work with balance sheet, it is historical data and it not consider potential growth company.
LIQUIDATION VALUE METHOD
- This method is static and consider an scenery of liquidation of company, include expenses and liquidations assets.
PRECEDENT TRANSACTIONS
- Review some transaction, compare the company with other companies recently sold in the same industry.
COMPARABLES TRADING MULTIPLES
- This method consider trading multiples, then use this multiples for calculate the business value.
DCF ANALYSIS
- This method consider projections and calculate a intrinsec value in cash flows, then use a discount rate for calculate present value of this cash flows.
Who make a business valuation?
There are many professionals as accountants, financial advisors, but our advice is that valuation must be make for financial advisors expert in business valuation.
We think a solid valuation report is a great tool for negotiation process.
What is a valuation report?
A valuation report is a negotiation tool, where you will know the value of your company and the capacity to generate value in the future. This report can be very detailed depending on the needs of each owner, as well as the reasons for the valuation.
Why choose Us?
Why choose Us for yor business valuation?
For us it is very important to know the business model and the capacity to generate value in the future, we use validation methods that are contrasted and technically accepted by the financial community and finally the valuation of your company will be carried out by experts in the field.
- Our team have experience in business valuation.
- We have our internal multiples database.
- In deep comapny analysis, understand business model.
- Sólid valuation report with standard of quality.
- All the process is condifential
Contact
All the process is confidential.
Edificio Cuzco IV, Paseo de la Castellana 141, 8, 28046 Madrid
+34 91 029 5540