The Importance of Valuing a Business Before Selling It 

The goal of every management team is to create value, whether for customers, employees, shareholders, investors, and so on. Value also plays an important role when you decide to sell off your company. 

Before you decide to sell your business, it is imperative that you connect with an advisor such as A Neumann & Associates. The company offers advisory services related to mergers and acquisitions, and can help business owners that are caught in the lurch. 

Selling your business is often a tough decision, and most people generally get emotional about it. However, with the advisory services of a professional such as A Neumann & Associates, you can make an informed decision. They have a highly qualified team that can guide you through every step of the selling process, including the preparation of a detailed analysis for selling your business, and for analyzing the offers.

They also use the services of an independent valuation firm to ensure a fair and partial value. 

However, this process goes beyond what constitutes the buying and selling of organizations. The valuation of companies for managerial management, commonly value management, is a tool to quantify how much value an organization creates, and behind the scenes, what accounts for the effectiveness or otherwise of management decisions.

A Neumann Understands Businesses

It is not just about knowing what the competition is, knowing the company’s products, prices and costs. It involves understanding the competitive advantages of the organization. It is no coincidence that some companies do well financially.

What lies behind is a reading of the attributes that allow them to compete more strongly in the market.

Brands, recurring customers who pay immeasurably with their loyalty beyond the purchase, improved processes that help them be more efficient, among others, are aspects that generate an advantage over the competition and help create value in the future. It allows to decipher which are the capacities to create value.

A Detailed Financial Analysis 

It is not enough for the brand to be recognized. These advantages must be capitalized on. That is, that they materialize in the financial records; that is, higher income or higher cash flow, typically a specialty of what is called Corporate Finance .

While business understanding qualifies, this analysis step quantifies it. Is that scaffolding of competitive advantage being reflected? It is the unknown that management has to formulate.

They Help With Calculations

It is the crux of the company valuation exercise. The spirit of valuing a company is to understand how much value an organization generates over time. In this sense, the fundamental thing is to take into consideration that not all the money will be received now, but that it will be received over a certain period of time.

To bring these cash flows to the present, certain methodologies must be applied, such as the CAPM model (Capital Asset Pricing Model). Through this, the variables that allow calculating the money that the organization can generate in today’s “pesos” are specified.