Business Valuation is the first important step in M&A transactions that affects the negotiations between buyers and sellers. Vensol Energy Investment & Financial Advisory experts prepare an accurate valuation of your business or assets. It is research or examination provided for potential investments at the point of confirming any financial situation that may be effective before the parties’ agreement or financial transactions. During the valuation, financial records are overviewed, strategic positioning is provided by determining the market strategy.
Business Valuation is the first of the important factors for determining strategy in mergers or acquisitions and creating value after operations. The measurability of the forward cash flows and the risks that will arise create a predictable acquisition or merger agreement along with the perceived strategic value. In most transactions, each potential buyer has a unique expectation of the synergy and value that will arise from a particular purchase, but a lack of adequate pre-purchase evaluation is costly.
– Excessive optimism due to insufficient analysis
– “Overoptimism” to rationalize the price considered necessary to secure the purchase
– Not paying enough attention to competitor strategies and activities
Business Valuation must be done by qualified valuators. With the accurate valuation of transactions, tactical planning in the sale of assets creates benefits such as obtaining financing or minimizing financial risk.