Business and Enterprise Valuation
The art of evaluating a company goes far beyond the realm of established methods of assessment, such as discounted cash flow, market multiples and call options. A quality assessment requires the valuator to have a deep immersion into the day-to-day operations of the company. Realistic scenarios, based in the sector in which the company operates, have to be created. These scenarios have to respect the timetable for delivery of results and the appropriateness of the methodology used, and also take into consideration the ideal context and the ultimate goal of the evaluation.
When we take on a valuation project, we put ourselves in the client’s position by always looking into how we can add value and insights to our work.
If you need a valuation: for the total or partial sale of the company, for a corporate divestment, to search for strategic investors, to leverage the financing and operation of a startup, to resolve litigious matter, or to support growth through the acquisition of another company or business, we are ready to help you.
Valuation of Intangibles
Intangible assets often represent the main asset of any business. However, it was the convergence of accounting standards in Brazil with international standards (IFRS), imposed by Law 11.638/07, that Brazilian companies were imposed to start to pay more attention to the assessment, control and correct accounting of this asset group.
Rating a company’s brand, patent portfolio, customer base, non-compete and other intangible assets, requires the knowledge of a robust portfolio of specific methodologies that respect the criterion of fair value.
Compliance to IFRS (International Financial Reporting Standards)
The convergence of Brazilian standards to international accounting standards intends to give the financial statements transparency, trust and relevance. This enables for balance sheet comparison across different countries, and thereby generates a realistic snap-shot of business efficiency for the analysis of shareholders and investors.
To guide companies in this process, the CPC– a Brazilian GAP- was created. It is formed by several entities, with the objective to study, prepare and issue technical statements on accounting procedures that ensure the standardization and uniformity of a convergence process.
We advise our clients in the process of adapting to international accounting standards, with special attention to the changes triggered in the evaluation of intangible assets and related aspects of fair value. Listed below are some of the statements that repeatedly work on:
CPC 01 - Impairment of Assets (Impairment test);
CPC 04 - Intangible Assets
CPC 06 - (R1) – Lease Operations
CPC 12 - Adjustment to Present Value
CPC 14 - Financial Instruments: Recognition, Measurement and Disclosure
CPC 15 - (R1) – Merger of Businesses
CPC 27 - Fixed Assets
CPC 29 - Biological Assets and Agricultural Produce
Project Finance & Modelling
We advise our clients on projects that require financial modeling in a strategic context and with a business plan, for long-term projects.