Valuation
What is the true value of an asset? Valuation is a complex process not indifferent to the particular situation of the involved actors. Our Valuation Solution becomes an essential tool during merges & acquisitions, internal negotiations between equity holders and asset liquidations.
In order to determine a useful value reference of an asset, Dante Consulting applies three different approaches:
Income approach
This approach of valuation translates future cash flows into a present monetary amount. When valuating, income might represent different cash flow concepts like EBIT, EBITDA, equity cash flow or dividends. The most widely used methodology is Discount Cash Flow (DCF), since it allows a clear exposition of the fundamentals of the asset.
Market approach
This approach leans on transactional information to assess the value of an asset. It includes as input private company transactions, public company transactions, and public company valuation measures that consider current stock market information. A key step of this approach is to find assets similar enough to the one been valuated (i.e., peer companies), in order to determine its value by the means of comparison.
Cost approach
This approach assess the value of an asset by quantifying the market replacement cost of the elements necessary to build a similar asset. In most cases this approach serves as a valuation floor reference, since the great majority of companies have greater value as an ongoing concern than they would if they were liquidated.
Every valuation approach relies on the findings of four of our practices: Economic Research, Industry Research, Quantitative Analytics and Economic and Financial Modeling. The output of the valuation is poured into a simple and friendly document, produced by our Communication Practice.
Dante Consulting has vast experience valuating real estate assets, agricultural assets, and equity stakes of companies in several industries. Every valuation experience has proved our proficiency, accuracy and unbiased opinion.