M&A: Do you know your company´s worth?

Have you ever wondered how much your comapny is worth?

Whether because someone has shown interest in your company, or because you have already thought about selling, raising capital or simply out of pure curiosity, this is a matter that you should consider as you never know when an interested investor might appear.

VALUE ≠ VALUATION ≠ PRICE

How a company valuation works

The value of a company is defined through the company's valuation process, in which a series of criteria and factors, both internal and external, qualitative and quantitative, are analysed and evaluated. Making it tangible is essential to determine the value of the company and its Equity.

Internal factors

Internal factors are those that concern the organization itself and its founders. We highlight the following:

• Historical performance and ability to generate revenue and income, associated with the added value generated by the company's activity(ies);
• Internal resources and competencies (specialized know-how, recurrence of R&D activities, brand, qualified human resources, assets such as real estate, equipment, among others);
• Customer portfolio and geographic scope;
• Management Team (governance) quality as well as other ESG (Environment, Social & Governance) matters.

External factors

We consider as external factors all those that do not concern the structure of the organization but rather the surrounding environment and context in which it operates. We highlight the following:

• Sector of activity trends as well as competitive advantages;
• Market positioning of the company as well as the company's reputation.

And the purchase/sale price?

The price will take all these factors into account and will depend on the amount the potential buyer is willing to pay.

Knowing the value of your company is information that is too relevant to ignore when making important and informed decisions. You can count on our team of specialists in Corporate Finance to help you with this process.

Contact us!