Value Study (valuation, feasibility studies and scenario analysis)

 

What

Economic value study and/or feasibility study to determine the value and/or return over an investment, either a business, a project or an asset. This is a comprehensive study, detailed and allows to decide how much, when and how to invest disinvest or finance, and what are the potential economic results of each decision. It allows to make the best choice from a shareholders’ and/or company’s value generation standpoint. Can be used to determine a range of values or returns for the business, project or asset.

 

When

When necessary to support strategic decisions based on the cash generation of investment, company or asset. Usually takes place in contexts of expansions, investments, mergers, acquisitions, restructuring, turn around, synergies determination, return over investment, internal rate of return, net present value, financing and refinancing, capital restructuring, transactions, deals and disputes.

 

How

Application of specific and worldly recognized concept, theory, approach and methodology to determine business value. Gathers historical and prospective operating, managerial and accounting information, and along with market data, builds an economic financial model ("Model") which calculates the business value, as well as, several other financial and operating parameters. This Model can include sensitivity analysis, considering different economic and operational scenarios, and further comprise shareholders' and management’s strategies. This process can take up to 6 weeks on average, depending on the business complexity and scope extent.

 

Format

This study should be presented according to client’s needs and can be a full comprehensive report or an executive presentation or executive summary.