Q&A

There are several methodologies on how to valuate a company; each one is used under different circumstances and provides a different perspective. Value is subjective and relative, but when it comes to creating value, it always revolves around an inescapable economic truth: things are valued based on the potential they have to generate profits over time. For this reason, the ability to generate profits becomes the center of the discussion, as well as the risks that may arise with it. The value will not be the same for both parties, hence the negotiation strategy also becomes an essential factor. Shareholders have until the last minute to increment or diminish the value of their shares and should not dismiss any detail. Selling or buying shares of a company is not a regular task, so contact us, let’s talk, it will be a pleasure to support and guide you in this process. Please review our Confidentiality Policy.

Selling a business requires a careful planning of the tasks to be carried out, they must follow logical steps and consider important elements such as; prudence, proper handling of sensitive information and assertive internal and external communication. Inappropriate handling of these elements, could result in not only a decrease of the value of your shares, but also affect the relationship and trust of customers, suppliers and employees.
For this reason, experience, strategy and effective negotiation skills are required to best engage the right buyer and achieve a successful closure. These processes are unusual for most people but frequent for specialized firms, hence, it makes sense to seek the right partner to achieve your objectives. Let us address your concerns, it will be a pleasure to counsel you. Please review our Confidentiality Policy.

The purchase of a business is an investment, and as such it should generate a financial return in accordance to the risks associated to the sector and to the prominent company itself, hence, the basic financial rule that says “the higher the risk, the higher the return” and vice versa.
A business can grow based on internal efforts, or external strategies; one of these strategies is merging and acquiring other companies. The purpose of this strategy could be: cost reduction, new and better capabilities, integrate human talent, obtain advantages in a certain market niche, vertically integrate (buy a supplier or client), absorb or block the entry of an unwanted competitor and obtaining new technologies among many others.
In addition, acquiring the appropriate percentage of share and paying the correct price are decisive factors towards achieving your financial goals.
There are a number of important variables to make a decision of this type. Contact us and it will be a pleasure to learn more about your concerns and guide you on the road to your business success. Please review our Confidentiality Policy.

It is not possible to determine if the offer to buy your company is right or wrong when you do not know the right value of your business. The moral of the peasant says: “my horse is not for sale, but to sell it to you, make an honest offer, with money in hand, and I quickly respond to you”. However, the peasant has to know the value of his horse in advance. Hence, if the offer is less than the right value, the peasant is able to return home on his horseback, but if it was greater that the right value, the peasant would arrive home “by foot”. Moral: for you to get off the horse, you have to know the right value.

Know the right value your business and design the strategy to continuously increment its value; this should be one of your primary goals. Contact us, it will be a pleasure to talk about it. Please review our Confidentiality Policy.