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When your company needs the services of Business Evaluation?


Buy and Sell Businesses / companies

We offer complete technical support in evaluating companies in the purchase and sale of businesses or companies, measuring the fair value for the company negotiated the best possible conditions to enable the transaction.


Disputes, corporate reorganizations or recognition of the value of the shares of the Shareholders / Partners

We measured and identified the unit value of equity shares of members in instances of claims, reorganization or the simple need for measurement of asset value for management purposes.


Tax benefit on amortization of Goodwill (Issue of Technical Report)

We issue Technical reports that support for the recognition of goodwill / negative goodwill in operations.


Formation of Joint Venture

Provide and identify the possible gains in achieving the formation of synergies between companies;


Benchmark

We evaluate and compare the value of the company concerned with the values of companies in the same sector;


Control Performance of corporate actions

We monitor and supervise the business actions that create value for shareholders / owners of the company, providing value drivers of its operations;


Estate Planning Dividend (payout ratio)

We measured and structured the policy of distributing dividends based on the need for investment, growth rates and returns promoted by the company;


Business Expansion

Quantify and qualify the best investment options for organic growth or through M & A.

Business Evaluation

What is the fair value of a company?

Contrary to what many may think, the fair value of a company is directly linked to future benefits cash it can generate, not its physical assets and reported quantitative accounting. In other words, the fair value of a company can not be determined by its wealth generated in the past, but for what it can generate in the future.

 

The methods of evaluation of companies adopted, the best known are: discounted cash flow, Multi Market and Book Value. The discounted cash flow is the most appropriate methodology and used by the market to determine the value of a company today. The benefits of this method are many, including recognition of the capture of potential future economic benefits of housing and use of company fundamentals, namely the ability to measure the value of the company itself.

 

Another method often used is the adoption of Market Multiples as a parameter value a company, yet simple and easy to use, recognize the value of a company like this to be appropriate for pricing other company. The advantage of this method is given for its ability to contain the trends shown by the market prices, the ability to reflect the ratings of such companies and their way of comparing the performance of companies in the same sector. In this sense, however, the market multiples requiring several adjustments to get the fair value of the company in question, since it has its peculiarities. Learn more about Multiple.

 

When it comes to measuring the value of a company by asset value methodology is the recognition of the firm at book value of existing assets of the company, ie, rated current cost or market value.

 

However, recognizing the methodology DCF as the most appropriate to price assets, the company that needs to be evaluated must take due care in acquiring companies evaluated using this method. The industry has submitted reports in most cases a high degree of inconsistency in a number of assessments that use this methodology with a view to the further aggravation and disagreement over the fair value of the business processes in large M & A conducted in 2008. The classic mistakes most serious identified recently are: recognition of high rates of growth without investment, lack of recognition of perpetuity when existing incorrect discount rate.

 

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