EVALUATION OF COMPANIES

HOW MUCH WORTH YOUR COMPANY?
Market Value or Intrinsic Value?

There is no way to establish how much worth a business . That's because the value of the business means different things to different people.

A business owner may believe that the business connection to the community it serves is worth a lot. An investor may think that the business value is entirely defined by its historic income.

The circumstances of a business sale also affect the business value. There is a big difference between a business that is shown as part of a well-planned marketing effort to attract many interested buyers and a quick sale of business assets at an auction.

Hence, business value is really an expected price the business would sell for. The real price may vary quite a bit depending on who determines the business value. Compare a buyer who wants the business now because it fits important lifestyle goals to a buyer that purchases an income stream at the lowest price possible.

The selling price also depends on how the business sale is handled. Contrast a well-conducted business marketing campaign and a "fire sale".

.Evaluate a company aims to meet its economic viability. The Business Format is very important in this context.

The objective ( * ) can be : Investment , Performance Manager's Business , Social Change ( Input and Output Membership); sale of the Company or Brand, Acquisitions , Mergers and Acquisitions; Deployment of New Technologies; Restructuring of Capital Investment evaluate a design and etc. Before investing in any business you need to evaluate, i.e. (id est) determining the fair value, avoiding paying value above what it's worth.

When a company is evaluated, it is necessary to know the intrinsic value and fair value possibly being paid - before any DEALING, especially with input and output members or other goals (*).

It is quite common when the withdrawal of a partner(s) or shareholder(s) by internal dissent, especially in non rare exceptions when it comes to family in power and / or there is existence of " unaccounted VALUES. Attention !!! We are not making apology to illicit the words verbatim is political in nature and past  government management preconized by television, newspapers and etc.

With the implementation of System-SPED Public Digital Bookkeeping System and its adjacent controls created by the Brazilian Federal Government, we expect a reduction of such illegalities.

The success of managers is how to manage properly the dilemma wealth and  maximization liquidity. The value of the Equity reflects the investment made by partners or shareholders, throughout their lives, linked to accumulated retained earnings.

When a company is evaluated, what matters is the ability to generate future results, sometimes only with INTANGIBLE especially BRANDS etc, not retained earnings and past investments.

The value of the company is of commercial interest to both members and shareholders - Capital - as well as encouraging others - business men. Administer is synonymous to decide and business growth will depend on the quality of decisions.

It is necessary to pay attention when faced with partial dissolution or corporate resolution scenario, whose evaluation criteria before the partnership agreement are often dissonant VALUATION of economic methodology, prevailing methodologies already accepted in our Courts.