Valuation
What is your company worth?
A company’s value is not what the owner wants to receive. It is the range the market is willing to pay, given the cash it generates and the risk of that cash.
A good valuation turns that conversation into defensible numbers at the negotiating table.
When to get a valuation
- Before selling, to know what to accept and what to turn down.
- When a partner joins or leaves.
- In family succession and estate planning.
- Before buying a company or a stake.
- For management: to measure whether strategic decisions create or destroy value.
How we value
- Discounted cash flow, with a discount rate built for the company’s actual risk, in the same currency as the projected cash flow.
- Trading multiples of comparable companies in the sector, in Brazil and abroad.
- Precedent transactions, to understand how much buyers have paid for similar businesses.
- Scenarios and stress tests, including events that a simple change in the discount rate does not capture, such as losing a client that concentrates revenue.
The result is an independent report, with a value range and explicit assumptions.
Frequently asked questions
What is my company worth?
It depends mainly on three factors: how much cash it generates, how predictable that cash is and how much risk the buyer has to take on. For this reason, companies of the same size operating in the same sector can have very different valuations.
Does revenue or profit determine value?
Operating profit and cash generation weigh more than revenue. Recurring revenue, a diversified client base and management that does not depend on the owner tend to increase value.
How long does a valuation take?
On average, two to six weeks after we receive the information, depending on complexity.
Want to know what your company is worth?
The first conversation is confidential and without commitment.