Consulting > Company Valuation
In today’s world, businessmen constantly make strategic decisions in the sense of acquiring new business units, merging, splitting and selling non-strategic business lines.
In order to implement these decisions, executives need to have information that allows them to determine a negotiating benchmark.
The value of a company or business is marked by the resources it is capable of developing and generating. For this, it is necessary to analyze the multiple scenarios in which it can be developed as the consequences and probabilities of each of them. Only a professional and specialized work guarantees the greatest objectivity in the evaluation of each of these scenarios offering an adequate assessment.
The identification of the most appropriate valuation methodology is the first step to start the process. This is chosen based on the characteristics of the company, the capacity to generate flows and the information available.
- In the case of companies in operation and with an adequate flow generation, the Discounted Cash Flow (FCD) method is used, considered the one with the highest acceptance in such cases.
- Another widely used method is the Comparable Multiples, which is based on information obtained from independent companies selected as comparable.