Valuation of companies and projects
Valuation of intangible assets

“Why?”

In finance, valuation can be defined as the process that is met to determine the final value of a product or of any kind, through the collection of various indicators, in order to enable its exchange in economic operations. The valuation process is very important in many situations including investment analysis, capital budget, mergers and acquisitions, among others.

The speed with which changes occur in the current business environment, requires that companies constantly engage in operations that, despite being increasingly complex, are valued from an economic point of view. Therefore, administrations need to have at their disposal all those elements that help them make the right decisions in the shortest possible time; and, that allow them to support the economic reasonableness of these transactions with high standards of transparency.

“How?”

1. Collection of relevant information Our consultants prepare a detailed report of the company, its business environment, macroeconomic factors and other relevant information. As a result, the economic and business factors that are relevant to the analysis are identified.

2. Selection of valuation model to be applied Based on the information obtained, the method of economic evaluation that is most appropriate for the company or transaction is chosen.

3. Analysis and projection of financial information The most important accounting and financial information of the company is identified to have a vision on its current financial situation, the resources it has, the results obtained, the cash flow, the profitability generated, among other aspects of relevance for the analysis. Likewise, those previously individualized elements are analyzed in detail, studying how they affect the business and identifying the risks involved and the economic functions that govern them.

Based on this information, a projection is made for the purpose of obtaining economic indicators and an overview of what will be the possible future financial behavior of the company or project.

4. Emptying of information in the valuation model All the elements obtained in order to generate results and the valuation that corresponds to the company are incorporated into the selected valuation model.

5. Model awareness and comparable Our consultants make adjustments to the results, taking into account the applicable variables according to the specific circumstances and circumstances of the company or project. A comparable pilot is built through the application of the chosen methodology to other companies or similar transactions, which are comparable, in order to compare both results.

6. Preparation and delivery of the valuation study The information collected and the analyzes are consolidated in a Valuation Study report, recording the relevant findings, as well as the applicable conclusions.