Business Valuations

Why value your business with Sunbelt Central America?

At Sunbelt Central America we use a structured and proven process to determine the most probable sale price (MPSP) range of your business.

We are characterized by:

  • Use of different valuation methodologies
  • Sensitization of potentials and various scenarios of the most probable sale price
  • Reference and statistical analysis with comparable business transactions at international level
  • Qualitative analysis of the company with respect to its industry

Do you know how much you could sell your business?

Why use an independent valuation company?

Regardless of whether the entrepreneur has an idea of the value of his business or not, an independent valuation is critical to objectively determine what is the value of his company and thus attract potential buyers.

A business is probably the most valuable asset an entrepreneur has, therefore, why would an owner risk not selling his business for the maximum value?

The peace of mind generated by knowing that the sale price of your company is the right one is a good start. However, the most important thing is to make sure that you are maximizing the sale price and that you have the necessary documentation to support that price before any possible buyer. This is achieved through the knowledge and detailed analysis we perform during the assessment process.

Valuation Methodology

Income focus

Based on the Principle of Future Benefits. Determines that the value of a company is the sum of the present value of future income, discounted at a rate that reflects the cost of capital.

The 2 fundamental elements for the income focus are:

  • Projection of expected income in the future
  • Return on investment

Market Focus

Based on the Substitution Principle. The value of the target company depends on how the market values similar companies from an operational and financial point of view.

The 2 fundamental elements for the market focus are:

  • Multiples of the market for comparable business transactions
  • Operational performance indicators (sales, EBITDA, Net Profit, etc.)

Cost Focus

This approach is based on the book value of assets and / or commercial value. As well as the equity value of a business to value it.

Other Benefits of Hiring a Company for the Valuation of your Business

  • The key to selling your business is that it is valued correctly. If the valuation results in a price higher than your expectation, it is the most appropriate time to sell your business. On the other hand, if the valuation results in a value that is too low, it is probably not the most opportune moment to sell your business and you need to take an additional time to concentrate on increasing the value of your company
  • The probability of sale of a company with a professional and impartial valuation is higher, since it generates transparency and credibility for potential buyers
  • A valuation is a starting point that simplifies the negotiation between buyer and seller, and therefore will close the time gap of the negotiation between what the seller expects to receive and what the potential buyer is willing to offer.

The place to go to buy or sell a business

If you are interested in buying or selling a business, contact us. We solve your doubts without compromise.