Business valuation
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Valuing a company is a decisive step for owners, investors and managers who wish to obtain a transparent and rigorous view of the economic situation of their business. A valuation process not only provides certainty in purchase and sale operations or mergers, but is also essential when requesting financing, planning tax strategies or making important corporate decisions. In Tecnitasa Group, our experience of more than four decades allows us to offer accurate and detailed company valuation reports, recognized by financial institutions, investors and official organizations.
What is business valuation?
Business valuation consists of determining the economic value of a company based on its financial health, its capacity to generate profits and its future growth expectations. Each method used is adapted to the sector, the size of the company and the purpose of the report, whether for a merger, an internal audit, a sale and purchase transaction or tax planning.
> Key factors influencing the valuation of companies
The valuation of companies requires an exhaustive analysis of multiple variables that have a direct impact on the final value assigned:
Financial position and profitability
A history of recurring profits and a low reliance on short-term debt strengthen solvency and boost investor and lender confidence.
Tangible and intangible assets
Tangible and intangible assets complement the valuation. Physical assets such as real estate, machinery or inventories provide an easily quantifiable tangible value. In parallel, intangible assets represent elements that can be decisive in maintaining competitive advantages in sectors such as technology, health or professional services. The correct valuation of these intangibles makes a significant difference to the bottom line.
Market positioning
The company’s market positioning and market share reflect its degree of consolidation in the industry. A company with high levels of brand recognition, a loyal customer base and high barriers to entry for new competitors is usually perceived as having greater value.
Customer portfolio and commercial contracts
The existence of long-term commercial contracts and framework agreements with strategic customers adds revenue predictability and stability to the business project, which positively influences valuation.
Sector and macroeconomic context
The macroeconomic context and the situation of the sector to which the company belongs play a fundamental role. Market trends, current regulations, growth prospects and the risks associated with the global economy. A rigorous valuation incorporates scenario analyses that examine everything from interest rate fluctuations to regulatory changes, in order to provide a realistic figure adjusted to present and future conditions.
> Why is it important to value a company?
Obtaining a professional valuation of a company provides clarity and substance in many areas:
Determine the real value of the company
Determining the real value of a company allows the owners and the management team to know exactly the financial and economic situation of the organization, which facilitates the planning of investments, divestments or capital increases.
Obtaining financing and bank backing
Financial institutions and investors require accredited valuations to assess risk when granting loans, lines of credit or participating in financing rounds.
Tax planning and accounting optimization
It allows to correctly manage the tax burden and accurately reflect the value of the company in the balance sheets.
Protection in litigation
In situations of litigation or corporate disputes, having an impartial valuation report translates into a solid defense of the interests of each party. Whether in legal proceedings, inheritance or separation of partners, the document acts as objective evidence before courts or mediators.
Benefits of hiring a professional business valuation service
Calling on a team specialized in business and financial asset valuation offers key advantages for any organization:
Experience in valuation of companies and financial assets
The experience accumulated in various sectors guarantees a rigorous analysis based on internationally recognized methodologies. Each study is customized to fit the company’s profile and the purpose of the report, whether expansion, audit or corporate transaction.
Up-to-date and competitive valuations
Beyond the overall value of the company, it is possible to perform specific studies, for example, to separate the valuation of a particular line of business or to analyze only intangible assets. This flexibility makes it possible to design detailed action plans, from internal restructuring to new product launches.
Approved and accurate technical reports
These documents include all the necessary annexes, itemized calculations and methodological criteria used, making them valid instruments for banks, auditors, investors and tax authorities. In addition, by incorporating up-to-date market data, a competitive valuation is achieved that accurately reflects the prevailing circumstances.
Discover other valuation services
In addition to companies, Tecnitasa Group offers appraisals and valuations of all types of assets. Its specialist team
applies specific criteria for each type of asset, adapting to the particular needs of clients.
Latest news on valuations
Check our blog for up-to-date news and specialized articles on the valuation industry. We offer information on trends, market changes, regulations and advice for owners and investors in this segment.
If your objective is to obtain a company valuation that meets the highest standards of quality and technical rigor, in Tecnitasa Group, through our consulting company TT Advisory we are ready to help you. Our multidisciplinary team combines a large number of willing experts, who work in a coordinated manner to deliver a customized report, tailored to the specific characteristics of your company and the purpose of the valuation.
If you need a valuation of your company, please contact us.
