{"id":2198,"date":"2020-10-20T11:06:42","date_gmt":"2020-10-20T16:06:42","guid":{"rendered":"https:\/\/php81.anepsa.com.mx\/?page_id=2198"},"modified":"2025-01-31T17:56:40","modified_gmt":"2025-01-31T22:56:40","slug":"valuacion-empresas","status":"publish","type":"page","link":"https:\/\/php81.anepsa.com.mx\/en\/business-valuation\/","title":{"rendered":"Business Valuation"},"content":{"rendered":"
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Business Valuation<\/h1><\/div><\/div>\n\n\n\n
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In Mexico the valuation of companies was not always of great importance,<\/strong> However, in recent years, studies on the subject have expanded and have made it possible to assess its relevance when making decisions within any company and on its ability to generate profits, which is the main objective for any type of entrepreneur. .<\/p>\n\n\n\n

In Business Valuation, both tangible and intangible assets must be considered; the latter have a value of great importance today, unlike some years ago. Their importance is notorious, since if they are not considered in the appraisal, partial or inadequate valuations of the company<\/strong>, sometimes overvaluing it with high tangible assets or undervaluing it. <\/p>\n\n\n\n

The purchase or sale of a business is the most common reason why a business valuation is required, however, there are other reasons such as planning, reorganization or verifying its value to lenders or investors.<\/strong><\/p>\n\n\n\n

A company, depending on the business to which it is dedicated and the sector in which it develops, can be made up of a wide variety of assets; from industrial warehouses, furniture, special installations and heavy machinery, to software, industrial secrets, trademarks and patents, as well as debts, income statements, etc. And the value of each of these elements is variable over time.<\/p>\n\n\n\n

To carry out the valuation of a company it is necessary to take into account a wide range of aspects, not only the value of the assets it owns. Therefore, it is a complex process, but if it is carried out with the correct methodology, it provides extensive and useful information about the company.<\/p>\n\n\n\n

What is business valuation?<\/strong><\/h2>\n\n\n\n

It is a process used more frequently by investors or businessmen to know the real value of the shares of a particular company, through this process the value in perpetuity of a company is estimated over time according to its historical behavior. <\/p>\n\n\n\n

What is business valuation used for?<\/strong><\/h2>\n\n\n\n

There are several reasons why you decide to carry out a business valuation, among them are:<\/p>\n\n\n\n

Buy and sell<\/strong><\/td>It is useful to reveal the theoretical value of a company, this is the minimum price that the seller must accept and the maximum price that the buyer must pay.<\/td><\/tr>
Stock Market Operations\/IPOs <\/strong><\/td>The result is the price at which companies should trade on the stock market.
When a company decides to go public, it is necessary for its shares to have a price so that, from that moment on, they can start trading on the secondary market.<\/td><\/tr>
Inheritances\/Judgments<\/strong><\/td>When a company is inherited, it is necessary to pay share distributions that will be determined based on its value.<\/td><\/tr>
Remuneration<\/strong><\/td>On certain occasions, a part of the remuneration of the company's directors is determined by increasing the value of the company.<\/td><\/tr>
Strategy (Merger and\/or Split) <\/strong><\/td>To find out which products add the greatest value to the company or if it is convenient to merge with others, in order to guide the company's strategy in one direction or another.<\/td><\/tr>
Arbitration processes and bankruptcy proceedings<\/strong><\/td>When a company has debts, fines or legal problems, a valuation must be carried out in order to cover the corresponding compensation.<\/td><\/tr>
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Business valuation methods<\/strong><\/h2>\n\n\n\n

The fair value of your company is determined through the adoption of financial statements to International Financial Reporting Standards (IFRS<\/a><\/strong> or IFRS for its acronym in English), which are inscribed in the acceptance patterns of the global economy. Once the company information is integrated into the IFRS<\/a>,<\/strong> Its value can be determined with the following three valuation approaches<\/p>\n\n\n\n

Income Method<\/strong><\/p>\n\n\n\n

This approach is premised that the value of the company is directly proportional to the income that the company receives. A projection is made on the inputs and outputs, with which the famous and virtuous for financial modeling is obtained. \u201cCash Flow<\/a>\u201c<\/strong><\/em>, this has to be abstracted through the \u201cDiscounted Flow Method or Free Cash Flow to Firm\/Equity\u201d<\/em><\/strong>, to conclude with a finite value of the business, which aims to measure the future projection at today's value for a finite time during its journey, with respect to its behavior in the sector to which it belongs.<\/p>\n\n\n\n

Market Method<\/strong><\/p>\n\n\n\n

To carry out a company valuation from a market perspective, a deep investigation of similar transactions must be carried out, evaluating similar companies, innovation of their products, etc. <\/p>\n<\/div>\n<\/div>\n\n\n\n

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Cost Method<\/strong><\/p>\n\n\n\n

To carry out the brand valuation with a cost approach, the argument is taken that the value of the brand is equal to the economic resources that were used to create it, however, it has the disadvantage that the result could be somewhat high or very low, so this approach is not suitable if you plan to use the valuation for a financial transaction.<\/p>\n\n\n\n

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How is a business valuation done?<\/strong><\/h2>\n\n\n\n

The most popular and used method is Discounted Flows (Free Cash Flow to Firm)<\/strong>, which enters as a business valuation model, within the income methods.<\/p>\n\n\n\n

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There are other company valuation methods that can be used for some other purposes, or even that in their application are more virtuous when it comes to measuring diversified impacts of risk, or by type of flow relationship that the product has, or by evaluate by which we can have different models:

 Some of the models used:<\/strong><\/p>\n\n\n\n