Business Valuation

Shareholders and investors ask themselves frequently how much their business is worth. We elaborate valuation reports for companies of any size and in any sector. We have knowledge of different valuation techniques that can be applied to a wide range of companies. We are ready to provide you with a valuation report of your business.
The value of a business rests primarily in the capacity to create future expected cash flows. Therefore, it is important to understand the details of not only the company but also the sector and the market in which it operates. A well-balanced approach between risk and return is a factor that defines to a large extent the quality of the valuation.

Our clients consist of shareholders of family businesses, SME´s, and large corporations, as well as accounting firms and the public sector.

Understanding the value of your business is important when buying or selling a share and in merger processes in which synergy plays an important role for value creation.

In addition, the valuation services are relevant for auditing purposes: Impairment testing, purchase price allocation (or PPA), and intangible asset valuations are some of the accounting areas that require a professional valuation.

Transaction support

We provide support to clients that embark on a transactional process. Mergers and acquisitions (M&A) can be considered for different reasons, but it is important to always take into account the strategy behind a transaction and to act accordingly.

The process of acquiring or selling a company consists of several stages, including a strategic analysis, evaluation of valuation aspects, deal monitoring, financial projection, legal steps and due diligence. It is important to have trusted advisors that will handle this process for you and acts in your best interest.

Our experience in M&A is built on a career in Big4 firms. We apply our knowledge in a practical way relevant to our clients, aiming to add value to your business.

Due Diligence

There are different types of Due Diligence, depending on the objectives, but they all have something in common: to provide detailed insight, to understand the real financial situation of a company and to obtain a well-documented report of findings. In Pilar Corporate Finance we have the capacity and the experience to carry out a tailor-made Due Diligence with high quality standards.

Buy-side Due Diligence: Key to decision-making in acquiring a business is the quality of earnings of a target company. Understanding the recurrence of revenues, the capacity to generate cash flow and the appropriate working capital levels, are elements that a buy-side Due Diligence will address. It is based on facts and analyses of financial figures. As a result of the process will give you advice regarding to the transaction, identify the warranties and guarantees that should be included in a binding contract and determine what adjustments are appropriate to the purchase price.

Vendor Due Diligence: Providing a potential buyer with a well-documented financial report about your business (subject to signing a confidential agreement or NDA) creates value and can be a determining factor in the deal-making or negotiation process. It is the opportunity to prepare the company for sale and anticipate any critical questions that the counterpart will observe.

Quick scans

¿What is a Quick scan? In about two weeks, we will perform an integral analysis of your business based on a financial review, corporate information, and interviews with key employees. The results? A summary-style report in which we identify risks, spot areas for improvement and present a gap analysis between your company and best practices. It is a powerful tool that can be the start of a business improvement process.

Financial Modeling

One of our core competences is creating a tailor-made financial model for our clients. While accounting and auditing look backwards, a financial model aims to project future financial statements based on historical financial trends as well as forecast assumptions regarding future developments.

Benefits? Thorough understanding of how future value is created in your business, identifying opportunities of improvements in operational efficiency, seeing the impact of certain strategic decisions concerning profitability, cash flows and financing requirements.

Financial modeling is the basis of corporate finance. It is used for business valuation, feasibility studies, evaluation of strategic scenarios and developing business plans. They are also relevant in obtaining debt financing with banks and to obtain insight into the capacity of the business to distribute dividends.

It is the key tool for each CFO and frequently used in board meetings as a support in strategic decision-making.

Business Plan

A business plan is not merely a static document that you create one day and then disappears in the bottom drawer. A good business plan should aim to get investors united to fund the business, and banks convinced to provide financing. Pilar Finance helps you to turn a business idea into an integral plan. The process itself of developing a business plan is already interesting and it helps reveal the true value drivers of your future business. Contact us so we can help you turn your idea into a business.