Valuation
We assists clients in determining the market value of a company or specific project for mergers or acquisitions, litigation and dispute resolutions between shareholders, company restructure and reorganization, assistance in negotiations and project dimensioning to make investment decisions.
How we Work
To determine the correct value of a company or project, after understanding the business and reviewing its background, we set up a cash flow projection model with all relevant variables to that business, for which assumptions are determined together with the client.
From this model we use different methods for determining the company value. In the end we define the method that best suits the reality of the company at hand.
The methods are:
• Discounted cash flow;
• Market balance;
• Market multiples.
The first, whose approach reflects techniques based on discounted future cash flows, is the DISCOUNTED CASH FLOW METHOD. It starts with the premise that the value of the entity must be derived based on its potential to generate wealth.
The second refers to models based on adjusted assets and liabilities based on conversion to market value of the items included in the financial statements if the company’s activities have ceased – LIQUIDATION VALUE METHOD.
The third method seeks to derive the company value adopting the comparison of similar companies in the market, taking as an example the MULTIPLES METHOD for business valuation.