Business Valuation

Company and business valuation

Because the Value of a Company or business depends on many factors, particularly the settlement or continuity scenario. And it also depends on the perspective of the interested party: shareholders and / or administrators or managers or creditors. Each assessment is a unique and distinct case and should be studied and tailored. At Serro & Andrade we follow international standards:

 

 

Equity valuation

The assets and liabilities of the entity, including those not accounted for (assets and contingent liabilities), are valued individually, using a certain valuation criterion for each of them. In this evaluation perspective, several criteria can be used, namely the settlement value, the book value, the replacement value and the fair market value.

YIELD – Discounted Cash Flows

It requires the development of preliminary work, together with the owner or management team of the company, of a projection for the coming years based on a certain strategy, conditioned by the envisaged environment. The final objective will be to obtain a value range based on the DCF (Discounted Cash-Flows) method, based on technical expertise and using specialized tools.

MARKET – Market Multiples Method

Using international databases, one obtains multiple market meanings that apply to a given cash flow, obtaining the value of the company.