Procedures
Business Valuation as a Management Tool
A Tool to Measure Business Liquidity
Understanding the Business and knowing its market value are critical issues to select the most appropriated strategy for the company and to choose the right time to:
- Invest;
- Go into a partnership;
- Or even sell the company whether partial or totally.
Therefore, a periodic Business Valuation is a key management tool to track its performance.
The Business Valuation Process
The valuation process that B,M,D follows renders not only the Business Value but also a Management Diagnosis for the Company’s current standing, as well as options and paths to lead shareholders and the company towards their objectives.
The valuation methodology is based on well known models as Discounted Cash Flow, multiples of EBITDA, EVA, among others, and must reflect the company’s ability to generate value and wealth for shareholders.
Different companies are constantly exposed to different external and internal risks and opportunities which can affect its business value; therefore the Valuation must be updated to reflect the current situation.
B,M,D conducts a professional evaluation looking at the business through the eyes of a potential buyer and turns it into a hands-on exercise to maximize business liquidity and meet shareholders’ expectations and perception about the optimum transaction price.
Brand Valuation
To manage the sources that generate value within a company the business owners must know and accurately identify the company’s intellectual assets like Brands. The economic valuation of a Brand can yield several advantages for the Company, including the incorporation of the Brand value into the Company Equity. The Brand value is also an important element for transaction as divestiture, merger or commercial and territorial expansions.
