is important to know that in these times either to borrow money, merge or simply find out if your company is still profitable, it is useful to know how your business is valued.
Have you ever thought how much what you do? Or how much money you need to capture this idea takes a long time in your head?
course to determine the value of a business can not take into account those little details that we seem so important and so many efforts have cost us, but we have to take into account various mechanisms allow us to determine if the company of our dreams or business initiative is or will be profitable over time.
To start we have several alternatives, we can determine:
Net worth of the company: It consists in calculating the value of a company minus total liabilities (obligations of a company, for example, debts) of total assets (real and rights of the company, such as machinery, equipment, buildings, land, etc.) If the result is negative, it means that your company is solvent.
Discounted cash flow: In this method, the value depends on the company's ability to generate sustainable cash flows in the long term (ie, the amount of money into and out of company in a given period).
comparative value: This method, otherwise very basic, is to compare your company with an operation of purchase / sale has been made recently of a similar business, recent acquisitions, etc. The problem with this method is that a business is never equal to another. Once
clear the criteria we will use to determine:
Liquidation value: we can say that this value is the value or amount of money which a company can be sold quickly. There are basically two types: ordered (to sell the assets to the highest bidder) or distress - at a cost of emergency - which is often minor, whether for lack of time or lack of buyers.
Key
Each method has its advantages and disadvantages, it is recommended to see which is most appropriate for each case, but can also be used in addition
Before calculating the value of your company's advisable to consult with an accountant or financial advisor, independent or a specialized firm, today we can find companies for a small fee we offer a complete service in this regard and may help us understand these concepts so rare that We had never crossed his mind that are so important when evaluating our business.
And last but not least is that the information they use to calculate the value of the company must be current and clearly grounded in showing the prospective buyer or investor. Ana V.
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