For 16 years, we have been carrying out Company Appraisals, in companies from different sectors of the economy and sizes, serving clients throughout Brazil. Our services cover business valuations, equity, intangible assets (such as trade names, customers, contracts and licenses, technologies) and financial instruments, etc.
The value of any business depends on two things: future earnings and the risks associated with those earnings. Valini's deep experience in financial modeling and forecasting gives you assurance that the information underlying our business valuation estimates is as accurate and reliable as possible. In addition, our business valuation expertise ensures our clients the proper methods are used to reach accurate and reliable estimates of their company's market value. 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 offer an integrated model that takes into account the company's industry perspective, valuation itself, technical accounting (US GAAP and IFRS), business structuring, taxes and our business consulting model.
We adopted the standard for evaluating companies suggested by the CVM - Brazilian Securities and Exchange Commission, using three analysis methodologies: Discounted Cash Flow, Market and Equity Multiples.
The diagram below illustrates how our service offerings fit into your business / investment decisions.
Advice on Transactions between Companies
Business Plan, Valuation and Project Finance
Business valuation for:
Buying and selling businesses/companies
Business Combination (CPC 15 - R1)
Joint Venture Formation
Benchmark
Performance Control of business actions
Dividend Distribution Equity Planning (Payout rates)
Business Expansion
Disputes, corporate reorganizations or recognition of the value of the shares of the Shareholders/partners
Litigation between Shareholders
Marital Dissolution
business interruptions
Fraud AnalysisDispute in breach of contracts
Other potential litigation
Debt settlement or restructuring
Impairment Test
Calculation of fair value of shares
Preparation and review of financial modeling
Preparation and review of financial projections and business plans
Investment analysis
Shareholder Value AnalysisProcess management and review of assessments prepared by third parties.
Frequently Asked Questions about Business Valuation:
1. Do I need a business valuation?
If you are interested in acquiring all or part of another company, at some point you may need an assessment of its value. The following are examples of situations where owners are likely to need our business valuation services:
Business between companies:
buy a company
sell a business
Facilitate an owner buy-in or buy-out
Obtaining debt or equity financing
Fusions and acquisitions
Acquisition or sale of intangibles
Purchase of equity interest
Business Expansion
Tax planning and compliance
Implementation of a real estate plan
Establishment of a family investment entity or other type of investment entity.
Business Combination (CPC 15 - R1)
Impairment Test
Tax savings in the amortization of goodwill/discount
Benchmark
Dividend Distribution Equity Planning (Payout rates)
Litigation and business disputes
Division of Property in Divorces
Resolution of disputes between shareholders
Exercising the rights of dissenters
Economic Damage Assessment
bankruptcy filing
Other Circumstances
Other Circumstances
Owner Succession Planning
Impairment Tests
2. What is the company valuation process?
One of the most common questions about business valuation services is, "What are the steps to valuing a business.
Confidentiality and commitment agreement.
As with most professional services, the relationship between the client and Valini will typically be set out in a written agreement (agreement). This agreement will define the scope of the appraisal project, the obligations of each, the estimated term, the fees and other important elements of the relationship between the parties. It will also be required a company representative, who will be responsible in making the project on time and scope walk hired.
Request for information.
The next step in the business evaluation process is information gathering. This usually comes in the form of a list of requested data and documents, such as financial statements, organization chart, manager qualifications, owner compensation data, brief descriptions of the business's history, its products and services, its customer base and the competitive scenario.
Preliminary analysis
After obtaining all the necessary documentation, Valini will review, organize and carry out initial analyses, independent industry surveys, economic drivers and other issues with the aim of preparing the interview with the owners and/or key management members.
Interviews with management and company visit
This is the moment where Valini will seek to understand “the story behind the numbers”, the segment in which the company is inserted, the organizational structure, the marketing activities, customers and main risk factors.A significant portion of this discussion it will also involve the company's historical financial performance and future prospects. This interview can be conducted in person. These points are defined in the confidentiality agreement. Knowing the company's facilities is generally helpful, but not a requirement. Still, a site visit allows certain qualitative judgments about the business as well as the confrontation with the information provided.
Valuation Analysis
Valini will now synthesize the information, documentation, interview results and independent research to determine how these factors affect the company. It is now that we will define one or more appropriate assessment methodologies. When using multiple valuation methodologies, each will usually give a different indication of the value of the stake. At this point we will use our experience and judgment to reconcile these disparate indications of value in order to arrive at a final opinion.'
Reporting and follow-up discussions
At this stage, the work can be done in two ways:
Issuance of a final report in "draft" form, allowing the client and its key managers to review the facts and rationale described in the report and after discussions, issue a final report.
Validation of each step during the assessment and ending with the issuance of a final report.
We adopted the standard for evaluating companies suggested by the CVM - Brazilian Securities and Exchange Commission, using three analysis methodologies: Discounted Cash Flow Method, Market Multiples and Equity.
To learn more about our way of working, contact us on the phone below or by email.