The company valuation is a process that allows the obtaining of intrinsic value of a business, thereby using different techniques or methods of valuation, widely accepted in the professional practice.
The valuation of a company has many different purposes, such as:
- Operations of sale/purchase.
- Registration and de-registration of shareholders or capital increases.
- Identification of unit values (sources of value creation and destruction).
- Making strategic decisions for business continuity.
- Mergers, acquisitions or exchange of securities.
- Operations with venture capital.
The conception of a proper Business Plan is key to facilitate decision-making, being this plan what may ascertain whether a particular business idea is economic, commercial or financially viable.
Therefore, the business plan development becomes crucial, when making decisions in various situations, such as:
- Creation of a new business.
- Desire or need for expansion of an existing business.
- Expansion of the company activity to other businesses.
- Seeking and obtaining external financing.
- Entry of new partners.
- Obtaining official grants or subsidies.
In certain circumstances, it is essential to propose and make changes in the business variables, which may impact on the economic aspects.A Viability Plan would set out the implications that such changes might have on a financial and economic level to society.
Its development helps making decisions in various situations such as:
- Making investments.
- Relaunching of a company.
- Handling bankruptcy proceedings.
- Seeking and obtaining external financing.
- Entry of new partners.
- Obtaining official grants or subsidies.
Companies must have an economic orientation when undertaking their activities in the market.
ARPA Lawyers Consultants can help organizations in their budgetary approach, as well as in monitoring them, in order to control the implementation of measures, which may have impact on a better outcomes’ development.