Financial estimation of the value of a company

Approach to estimating the value of a business

This approach will allow the seller to become aware of the accounting value range (without restatements) of the company and to become aware of the elements that influence this value. He will be able, with our assistance, to set up an action plan to improve them and thus directly increase the value of his company.

A business plan or exit plan is the projection of the company’s future over several years. It is an essential decision aid for any buyer. A good business plan informs the buyer about the turnover and profitability prospects, the size of the structure, the cash flow needs or surplus, the ability to repay the loans of the acquisition holding company, and of course, the appropriateness of the strategic option adopted. The need to present a successful plan will de facto force the company to think and implement the necessary performance improvement measures. A good business plan will save precious time for both parties and will considerably shorten the negotiation period while improving the estimation of the company’s value.

Various Recommendations

Beyond the Business Plan, we will make an inventory of the subjects which will also have an impact on the valuation of the company. These are notably points that cannot be quantified, such as the quality of the teams or the guarantee of a source of supply.

The final step before the company is put on the market is its second, more in-depth evaluation, which will have benefited from all the effects of the preparation. This is also the time to measure the progress made, and to evaluate the efficiency of our office whose remuneration is partly based on this result.