It is very important to keep in mind that the valuation of companies, like the appraisal of any asset or real estate, is not an exact science, since the final value will always depend on the result of a negotiation. However, if you want to sell your company or make a capital increase, it is essential to make a rigorous valuation that provides the tools to face a good negotiation with potential buyers, who will also make their estimate to determine how much they will be willing to pay for the business.
A company is worth "whatever someone is willing to pay for it," but how much is a rational buyer willing to pay for a given company? Sophisticated and financially savvy investors base their willingness to pay on the ability of the company to generate box in the future. Not its sales, not its EBITDA, not its profits. Box.
Estimating the cash-generating capacity of any business is something that is not so easily gleaned from a company's income statement. It has strategic, risk and market considerations, and even the legal framework in which the company operates.
The valorization focuses both on determining a company's ability to generate cash in the future and the levels of risk associated with these estimates. For this purpose, it is necessary to identify the drivers from which a series of figures are derived: sales, costs and expenses, margins, cash flow mismatches, working capital and necessary reinvestments. In short, the elements that make a company generate value.
