Business Valuation

We have been conducting Business Valuation in companies for 14 years from different sizes and sectors of the economy, assisting customers throughout Brazil. Our services comprise valuations of companies, participation, intangible assets (such as trade names, customers, agreements and licenses, technologies) and financial instruments, and so on.


The value of any business depends on two things: future profits and the risks associated with such profits. Valini's broad experience in financial modeling and forecasting assures that the information that underlies our business valuation estimates is as accurate and reliable as possible. Besides, our business valuation experience ensures our customers that the suitable methods are used to achieve accurate and reliable estimates of the market value of your company. Our business valuation estimates represent what business owners can reasonably expect the market prices of their business to be in a transaction.


Through the experience of our professionals, we provide an integrated model considering the perspective of the company sector, the valuation itself, the technical accounting (US GAAP and IFRS), business structuring, taxes and our business-consulting models.


We adopted the standard of valuation for companies suggested by CVM - Securities and Exchange Commission of Brazil, using three analysis methodologies: Discounted Cash Flow Method, Multiples, and equity.


The diagram below illustrates how our services fit your business/investment decisions.

Consulting on Transactions between Companies
Business Valuation for:

 

  • Buying and selling of Business/Companies

  • Business Combination (CPC 15 - R1)

  • Joint Venture Formation

  • Benchmark

  • Corporate actions performance control

  • Equity Planning for Dividend Distribution (Payout)

  • Business Expansion

  • Disputes, corporate reorganizations or recognition of shareholder value

  • Shareholders Dispute

  • Conjugal Dissolution

  • Business interruptions

  • Fraud Analysis

  • Breach of contract lawsuit

  • Other potential lawsuits

  • Debts settlement or restructuring

  • Impairment Testing

  • Calculation of fair value of a stock

Business Plan, Valuation and Project Finance
  • Elaboration and review of financial modeling

  • Elaboration and review of financial projections and business plans

  • Investment analysis

  • Shareholder value analysis

  • Process management and review of valuations prepared by third parties.

Frequently Asked Questions about Business Valuation:


1. Do I need a business valuation?
If you have are interested in the total or partial acquisition of another company, at some point, you may need an assessment of its value. The following are examples of situations in which owners are likely to need our business valuation services:

  • Business-to-business:

    • Buying a company

    • Selling a company

    • Facilitating a buy-in or buy-out of the owner

    • Obtaining debt or equity financing

    • Mergers and acquisitions

    • Acquisition or sale of intangibles

    • Purchasing of equity interest

    • Business Expansion

  • Tax planning and compliance

    • Implementation of a real estate plan

    • Establishment of a family investment entity or another type of investment entity

    • Business Combination (CPC 15 - R1)

    • Impairment Test

    • Tax saving in the amortization of Goodwill/Negative Goodwill

    • Benchmark

    • Dividend Distribution Asset Planning (Payout Índex)

 

  • Litigation and business disputes

    • Property Division in Divorce

    • Settlement of disputes between shareholders

    • Rights of dissidents

    • Economic damage assessment

    • Declaration of bankruptcy

 

  • Other Circustances

    • Planning for owner succession

    • Impairment Tests

2. What is the process of evaluating companies?
One of the most common questions about business valuation services is, "What are the steps to evaluate a business?”

  • Confidentiality and commitment agreement.

As with most professional services, the relationship between the customer and Valini will typically be set out in a written agreement (contract). This agreement will define the scope of the evaluation project, the obligations of each part, the estimated term, fees and other essential elements of the relationship between the parties. It will also be required a representative of the company, who will be responsible for the deadline of the project.

  • Request for information.

The next step in the process of evaluating companies is the collection of information. This usually is performed through data and documents, such as financial statements, organizational chart, managers’ qualification, owner remuneration data, a brief description of the history of the business, its products and services, its customer base and the competitive landscape.

  • Preliminary analyses

After obtaining the necessary documentation, Valini will analyze, organize and carry out initial investigations, independent industry surveys, economic drivers and other issues to prepare the interview with the owners and/or key management members.

  • Interviews with management and company visit

This is the time when Valini will seek to understand "the history behind the numbers", the segment in which the company is inserted, the organizational structure, the marketing activities, the customers and the main risk factors. It will also involve the company's historical financial performance and prospects. This interview might be conducted in person. These points are set out in the confidentiality term. Knowing the company's facilities is usually helpful but not a requirement. However, a visit to the facilities allows certain qualitative judgments about the business as well as the confrontation with the information provided.

  • Valuation Analysis

Valini will now synthesize information, documentation, interview results, and an independent survey to determine how these factors affect the company. It is at this point that we will define one or more appropriate evaluation methodologies. When using multiple valuation methodologies, each one of them will usually give a different indication of the value of the participation. At this point, we will use our experience and judgment to settle these different indications of value to arrive at a final opinion.

 

  • Issuance of follow-up reports and discussions

At this stage, the work might be done in two ways:

• Issuance of a final report in the form of a "draft", allowing the customer and his/her main managers to review the facts and reasons described in the report and, after discussion, to issue a final report.

• Validation of each stage during the evaluation and ending with the final report.

We adopted the standard of valuation of companies suggested by CVM - Securities and Exchange Commission of Brazil, using three analysis methodologies: Discounted Cash Flow Method, Multiples, and equity.

To know more about our way of working, contact us on the telephone below or by e-mail.

Matriz - São Paulo  - SP

Av. Paulista, 2073 - Horsa II - 17° andar - Cj. 1702  São Paulo - SP

comercial@valini.com.br | (11) 3373-7501

Whatsapp comercial (11)930111501

Filial - Ribeirão Preto - SP

Filial: Rua José Bianchi, 555, conj. 2104 - Ribeirão Preto – SP comercial@valini.com.br  |   (16) 4141-3091

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© 2017 - Valini Consulting