Knowing when it is necessary to make a valorization of companiesThe best possible decision regarding your business and the value it possesses is guaranteed.
Having certain knowledge to be used at a given moment makes it easier to make decisions regarding any type of investment or action. However, not many people even know when to apply a valorization of companieswhy is a valorization of companies or to whom to go to do it, makes it more difficult to know when it should be done. That is why we will now answer the question "When is it necessary to do a valorization of companies?
Although business sales and purchases occur for different reasons and in different ways, knowing the value of the business facilitates the way in which decisions must be made. Likewise, a business valuation is generally performed when a company is to be sold.
Thanks to the valorization of companiesIn this way, weaknesses or opportunities for improvement can be detected in order to carry out the best possible measures.
A valorization of companies is important because it accurately and precisely measures the amount of value the business currently holds.
For what reasons should a business valuation be performed?
Among the reasons why you should always make a valorization of companiesare:
Develop strategies
In the event that a company is not in the best possible momentum and is at risk of dissolution, divestitures, value retributions or is about to merge, expand and take acquisitions, it is necessary a valorization of companiesThe best possible strategy can then be determined.
Allows the search for liquidity
In the event of debt restructuring, sales of equity investments, collateralized loans, IPOs and other issues, it is necessary to have an valorization of companies to know the best financial decisions with respect to each of these factors present.
Improve fiscal processes
Perform a valorization of companiesThe capital gains and/or losses on the sale of shares can be determined and a guarantee is provided for payment deferrals.
Knowing what the company is really worth
Thanks to a valorization of companiesThis allows you to get to know how much a business is really worth, without assumptions or hypothetical estimation scenarios.
To have a valorization of companies a business can be sold at the best possible price, having the minimum selling price for sellers and the maximum buying price for buyers.
In view of valorization of companies is subject to mathematical methods and precise calculations, avoids any inaccurate or imprecise estimation, achieving the highest possible profit.
What is the difference between price and value in a company?
The price is the result that exists between supply and demand, which is determined through negotiation, where desires, tastes, synergies, preferences, opinions of the amount, among other aspects that influence the transaction process, are very present.
Value, on the other hand, is the result obtained through explicit calculations, in order to help make the best possible decisions.
What methods of business valuation are there?
Currently, there are several types of methods and formulas for making a valorization of companiesHowever, the most commonly used are:
- Cash flow discounting.
- The accounting method.
- The method of settlement.
- Mixed methods.
- Comparable multiples.
A valorization of companies allows you to achieve many positive aspects for a business; either because you are going through a bad time and want to sell your company completely or because you want to make some acquisitions or mergers.
What determines the value of a company when performing a business valuation?
There are different elements that influence the value of a valorization of companiesamong these are:
- Macroeconomic factors. All elements from the macroeconomy, such as Gross Domestic Product (GDP), inflation, exchange rates, currency exchange rate, interest rates, legal regulatory framework and other external aspects that affect a company.
- Profitability and growth. Aspects such as investment, financial structure, collection periods, sales margins, product rotation and others, influence the value that a company obtains when making an investment. valorization of companies.
- Other common characteristics of the sector. Such as the structure of competitors, market behavior, entry barriers, internal regulations, among others.
What mistakes should be avoided in a business valuation?
Among the errors to be avoided in a valorization of companiesare:
- Failure to correctly apply the valorization of companies appropriate in the sector.
- Determine the value of the company only by its assets, without taking into account the liabilities or intangible aspects it possesses.
- Failure to take into account SME companies for a valorization of companies.
- Not having a strategic plan for a correct valorization of companies.
- To come to believe that a loss-making company no longer has sufficient value to be sold.
- To give importance only to the final result of the valorization of companies and not to the path of this one.
Why use an expert in business valuation?
Perform on your own account a valorization of companies is quite complex, as well as having numerous types of complications. The best option for limiting any type of error or unforeseen event in a valorization of companiesis to have the help of an expert in the field.
The expert in valorization of companieswill provide a number of objectivity, coherence, transparency, strategies, knowledge and results that seek to find the true value that a business possesses.
These regulations or factors that an expert in the valorization of companies has, limits the likelihood of having an inaccurate value.
At Valoriza.clyou can get the peace of mind you need by obtaining a valorization of companies fair and subject to precise and accurate calculations.
We invite you to contact to us so that we can provide you with more help and information on the valorization of companies.
