The 5 biggest reasons to do a valuation of your company

The 5 biggest reasons to do a valuation of your company

Knowing the real value of your business is essential. It is valuable information that will give you the opportunity to always be in a good position to define the direction of your company. And to have this valuable information at hand, only with a quality valuation, which brings you all the points that show the real value of your company in the market.

Check now the main reasons to make a valuation of your company:

1. Personal reasons

A divorce affects the couple’s assets. At the time of sharing, how much is the participation of entrepreneurs in the business worth? Despite being a delicate topic, it is necessary to understand how to solve all the doubts that will arise at the time of dividing the assets.

A group of heirs needs to know the value of the business to study how to share it. The valuation of the company or group of companies is essential to start the necessary discussions.

2. Entry and exit of members

Changes in the corporate structure of the company are common events. The entry of a new partner may occur for different reasons, from the need to increase the share capital, add new skills, or even the departure of a previous partner. As with your withdrawal, it is fair that you receive the value of these shares. It is at these times that information on the company’s value is essential.

3. Company merger

The merger of companies is the union of two or more organizations, resulting in the creation of a third new company. Considering the dynamics of the market and its constant transformations, this type of business reorganization happens to form even more solid and powerful companies. Thus, it is necessary to know the value of each company separately to determine the value of the new company and its synergies.

4. Sale of the company

Understanding the value of your company allows the entrepreneur to get to know it better, exploring the aspects that value it. Knowing what the fair value of the company is is vital information to avoid being harmed in a transaction, nor losing an opportunity to close the deal because you believe that the company is worth more than the market value. With this information, the entrepreneur will have better conditions to negotiate with a possible buyer/investor.

5. Lines of credit

Is a loan necessary? What is the interest rate to be charged? Presenting only accounting data helps, but showing that the company is performing and has growth plans helps much more. Showing the cash flow situation and growth assumptions are crucial to getting credit at better rates. A good valuation report helps in this task.

PreValor and the “uncomplicated” valuation

PreValor is a valuation company that offers its services mainly to small and medium-sized companies and startups. PreValor provides an accurate Valuation based on globally accepted financial metrics that also take into account the Brazilian reality.

With the reports made by PreValor, you will have the information that investors and business buyers want to know about your business.

In addition, PreValor was designed to be an affordable valuation platform for micro, small and medium-sized companies. Seeking to uncomplicate and reduce costs for its customers.

At PreValor you will find two ways to build a valuation:

-Self-assessment, in which the entrepreneur himself is responsible for providing all the company’s data on our web platform.

– And the valuation done with the help of a team of financial analysts.

All very simple, fast and safe.

Now it’s much easier to do the valuation of your company with PreValor. Visit and learn more.

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