There is no company without a value , little or much. This business value is called Business Valuation , an important concept for managers , after all, it directs all strategic actions that the company will follow . Knowing Valuation and knowing how to apply it is essential, as professionals need to know how to attribute the economic value of a company .
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But this process is not simple, it is necessary to understand and master this “technique”, and this requires a lot of study and application of efforts . It is necessary to get your hands dirty and put the idea into practice.
How to apply Valuation in your company?
Having the mastery of information about your company is essential for a manager . He needs to have control not only of resources, but also of all indicators, market situation and, above all, the company’s valuation .
The Valuation is of utmost importance, is a calculation that evaluates the estimated value of the company . This calculation is done through methodologies that make the result more assertive. Valuation means valuation of the company , which seeks to understand the position the company occupies in the market and the expected return on an investment. This assessment can be done in several ways:
- What the company has of assets and liabilities.
- The value of intangible assets (brand, technology, relationship, etc.)
When you have the company’s value , that is, the valuation of a company in the market , all the planning of this company can be done in a much more assertive way. It is possible to identify the opportunities that the business may have in the market , and thus further increase this value.
This process is important because the manager has complete control over the most diverse points of the company , the real situation beyond the metrics . That way he will be able to make the best strategic decisions for the whole.
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When a manager needs to make a decision involving a share purchase and sale or merger, the valuation is a decisive factor in this decision, he who directs all other actions:
- more competitive advantage ;
- analyze areas of expertise;
- increase the share of market share ;
- more aggressive operating strategies ;
- improve organizational structure.
Therefore, knowing the valuation of companies , whether small or large, is essential in various situations of the company. For example, selling your stake or improving your financial management . The most appropriate method for measuring this strategy is the one that is most in line with the purpose of the valuation . It is not an exact number, but a parameter for trading .
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