Post by account_disabled on Mar 6, 2024 5:09:25 GMT
The business valuation process aims to estimate its price, through the application of technical knowledge and common sense, quantifying the elements that make up the equity capital of a company, its activity, its potential or any other characteristic that can be valued. . What does the valuation of a company consist of? From the field of finance, the main objective of companies is “ value maximization ”: companies prosper when they create real economic value for their shareholders, understood as their ability to grow, generate and sustain cash flow and returns above of the cost of capital over time. By taboolayou may like "don't yell at me", "bossy"... The public confrontation of letizia and felipe vi with jaime peñafiel within this field of knowledge, business valuation arises , which attempts to obtain an estimate of value or a justifiable range of value for the company's own capital.
This estimation involves carrying out a complete and holistic process of analysis, which encompasses much more than the application of a series of mathematical formulas (for this reason it is often said that valuation is both a science and an art). Among other key aspects, it includes understanding the Venezuela Mobile Number List main variables that affect the actions of companies, such as macroeconomic variables and the industry and market in which they operate, as well as multiple areas of their operations and strategy, such as such as its historical, current and future operations, its strategic perspectives and plans, and its “ value drivers ”, understood as those management parameters that have a significant impact on value. Objectives of business valuation companies are valued for multiple reasons.
Common valuation objectives include: mergers and acquisitions of companies ( mergers & acquisitions ) support of a transaction support before control organizations or tax requirements strategic business planning allocation of prices in cases of purchase of companies ( purchase price allocation ) business strategy evaluation corporate value management purchase audits ( due diligence ) obtaining financing and strategic partners remuneration systems for management positions inheritances and wills financial and tax planning ( tax planning ) impairment tests _ direction and management control arbitration and litigation processes although in most cases the valuation is usually carried out before buying or selling a company, its usefulness transcends this situation, since it is an important management tool that allows evaluating the best strategies and identifying the factors that create or they destroy value for the shareholder.
This estimation involves carrying out a complete and holistic process of analysis, which encompasses much more than the application of a series of mathematical formulas (for this reason it is often said that valuation is both a science and an art). Among other key aspects, it includes understanding the Venezuela Mobile Number List main variables that affect the actions of companies, such as macroeconomic variables and the industry and market in which they operate, as well as multiple areas of their operations and strategy, such as such as its historical, current and future operations, its strategic perspectives and plans, and its “ value drivers ”, understood as those management parameters that have a significant impact on value. Objectives of business valuation companies are valued for multiple reasons.
Common valuation objectives include: mergers and acquisitions of companies ( mergers & acquisitions ) support of a transaction support before control organizations or tax requirements strategic business planning allocation of prices in cases of purchase of companies ( purchase price allocation ) business strategy evaluation corporate value management purchase audits ( due diligence ) obtaining financing and strategic partners remuneration systems for management positions inheritances and wills financial and tax planning ( tax planning ) impairment tests _ direction and management control arbitration and litigation processes although in most cases the valuation is usually carried out before buying or selling a company, its usefulness transcends this situation, since it is an important management tool that allows evaluating the best strategies and identifying the factors that create or they destroy value for the shareholder.