Business Valuation

Determine the state of the company and financial value to facilitate the strategic decision making of our clients.

Business Valuation

At ETL ILIA, we offer a business valuation service carried out by highly specialised experts. This type of work must be carried out in detail, reviewing the organisation’s accounts, financial status and other aspects. Thus, we can determine an optimal purchase price or if your prospects are adequate.

We carry out the different valuation tasks systematically and professionally. The goal is to determine the state of the company and financial value to facilitate the strategic decision making of our clients. The consulting firm’s analysts have extensive experience and have the relevant certifications, which guarantees top-quality results.

Experts in Business Valuation.

We take care of the entire process for your peace of mind.

Tell Us About Your Needs

What does our service consist of?

1. Previous analysis

We review the status of the target company by entering their income statements and balance sheets. In this phase of the service, we make a first approximation, which is very useful for the following steps.

2. Comparison (historical figures)

We contrast year-on-year data, such as net profit or sales evaluation, to see how the company has grown over time. This allows us to determine the type of business, its status, and the strength of the information presented in its reports. Thus, we see the development of trends or how management has solved problems in the past.

3. Accounting analysis

Business accounting is critical to understanding your situation. A thorough review allows us to know the status of your assets and liabilities, as well as the presence of failures or makeup attempts. It is an important step in determining the value of the company and its financial status.

4. Tax analysis

A healthy and up-to-date tax system is a good sign. However, we review this aspect thoroughly in search of defaults, outstanding charges and other problems. In this way, you avoid acquiring a company with problems with the treasury, which will have to be addressed in one way or another.

5. Job analysis

We investigate the company’s organisation chart, the situation of the workers, the state of the management or if the salaries are balanced. This allows us to get closer to the organisation’s productivity and know the strengths and weaknesses in the workplace.

6. Sectoral comparison

Once the investigation is completed within the company, we compare it with others in the sector. The objective is to determine your position in it, which will affect the final assessment. Only then will we know if it is a reference or one more.

7. Valuation reports

The work carried out crystallises in these documents. In them, we provide the information collected, the value of the company and the reasons that have led us to the conclusions set out. We record the annotations that we deem pertinent and recommendations to potential buyers.

8. Search for buyers

Finding the right buyer is as important as valuing the business. We pay attention to the organisation’s characteristics and its financial and employment status to find the best profile.

Business Valuation

We take care of the entire process, from the preliminary analysis to the delivery of the report with the conclusions.

1. What is Business Valuation?

The goal of the valuation of companies is to determine the range of values in which the price of a company is located. To reach this conclusion, different models are used, which fall into two groups: accounting models and future profitability models. The first is subdivided into two: balance sheet analysis and the multiples model. In the second case, there are three subdivisions: market value, discounted cash flows, and real options.

Each of the models allows estimating the value that the company would have. They rely on different factors to reach their conclusions, but it is necessary to argue them and explain how they were reached. In this way, important help is offered to the prospective buyer.

The valuation also has other purposes. When carrying out a merger, it is necessary to develop an exchange ratio, which is preceded by a thorough valuation. In addition, some types of OPA require this work to provide the public with important information. It is also used when security wants to go public to establish a starting price.

Whatever the method of conducting the assessment, the objective is always the same: to offer honest, realistic, and duly justified results. Consequently, we issue a quality report that is useful for the interested client.

2. Advantages of Business Valuation

The main advantage that valuation offers is that it prevents you from acting blindly. Acquiring a company is an important decision, as it could mean an increase in business or a loss in both the short and medium term. The purchase of companies is a way to diversify a larger company, consolidating its economic status.

Another aspect to consider is security. By resorting to a service offered by professionals, the chances of error in the valuation are reduced. This is done following different methodologies, which thoroughly study the economic circumstances of the company. The result is an argued, comprehensive report that shows both the strengths and weaknesses of the company to ensure a smart purchase.

In addition, using this service, you save the costs that would entail acquiring a business that is not worth it. These errors can be a serious blow to a company’s accounts, so it is necessary to avoid them as much as possible.

3. Conclusions

At ETL ILIA, we offer a quality and professional business valuation service. We have a team of certified experts who carry out these tasks. Developing this activity is key to making strategic decisions, which will substantially impact both in the short and long term. We want to provide our clients with security and solid arguments.

With this business valuation service, we contribute to acquiring solid, stable, and future-oriented businesses. We use reliable and proven methodologies to issue detailed reports. We seek to carry out precise, rigorous, and meticulous work. In this way, we provide the necessary confidence for our clients to make their decisions with complete peace of mind.