Business / Company Valuation
Among the spectrums of business valuation:
Sale or acquisition of businesses
Valuation is essential for determining the correct price of a business in the case of a full or partial sale. This helps both parties understand the true value of the business and make informed decisions.
Mergers and acquisitions (M&A)
In merger or acquisition processes, valuation is necessary to determine the value of each entity involved and to negotiate the terms and conditions of the transaction.
Transactions between affiliated parties
Valuation is important to ensure compliance with market value principles, transparency, and fiscal compliance, as well as to prevent potential disputes.
Strategic partnerships or joint ventures
When a company seeks to form strategic partnerships, valuation can help establish the value of each partner’s contributions, ensuring an equitable distribution of benefits.
Accessing funding and attracting investors
Banks and investors request valuation to understand the business's value and risks before offering financing or investments. Valuations are also useful for securing non-repayable grants or other forms of financial support.
Initial Public Offering (IPO)
In the case of an IPO, valuation helps determine the market value of the company and set the correct price for the shares.
Delisting from the stock exchange
When a company decides to withdraw from the stock market and become private, valuation is necessary to determine the correct value of shares, ensuring fair compensation for shareholders wishing to exit and compliance with delisting regulations.
Strategic planning and performance monitoring
Companies use valuation to set clear growth objectives and assess management performance based on the evolution of the business value. Monitoring investments is particularly important for venture capital and private equity funds.
Succession and ownership transfer
In the case of succession or ownership transfer within a family or to a third party, valuation is necessary to determine the business’s value and ensure a fair transition.
Litigation and legal disputes
Valuation is important in cases such as divorce, shareholder disputes, insolvency, or other legal issues involving the determination of business value.
Motivating and retaining key employees
Some companies use valuation to implement employee reward programs, such as stock or stock options. These can contribute to motivating and retaining essential staff.
Internal reorganizations or restructuring
When a company wants to reorganize its structure or divide certain divisions, valuing each part involved is important to understand the market value and the contribution of each segment to the total business.
Exit strategy planning
Entrepreneurs may request valuation to understand the current value of the business and decide the most appropriate time and method to exit, whether through sale, merger, liquidation, or other methods.