The company valuation is a hot topic in today's economic world. The interest in this activity is also strong growth in the light of a situation characterized by strong market transactions in the field of special operations (acquisitions, restructurings, transfers, splits, spin-offs, etc..) due to a restructuring of corporate balance following the crisis of global markets.
All this is making some news in the field of the theory of company valuation, adding to traditional assessment methods supported by a large and well-documented theoretical doctrine, methods for estimating the value based on theories not as solidly documented and mature.
The objective of the business is to determine the theoretical value of the economic capital of a company to provide relevant information for special operations such as capital increase, share transfer, mergers, etc.. or even as a result of statutory duties.
The main stages of concern the selection and application of valuation methodologies are appropriate from those suggested by economic theory and practice professional located in this area, application methods, eg finance, stock market multiples of comparable transactions or , income, etc..
The company valuation leads to the drafting of an appraisal more or less articulate in which the estimator, estimated the property identified, describe the purpose and characteristics of the estimate, the assumptions and the evaluation process on which it is based, the methodology applied in the evaluation of the company and its conclusions of value.
The company valuation is carried out in many contexts and with as many purposes. In principle we can say that it is performed by a hand at special operations (transfer of undertakings, sale of shares, sale of a business, corporate transformation, transfer, divestiture, business rental, corporate restructuring , revaluation of investments, entry of a new partner, capital increases, surcharges, court proceedings, arbitrations, court expert, demand for guarantees for loans, impairment testing, evaluation and recognition of intangible - Trade marks and patents, etc.-resulting in estimated fair value of the purchase price allocation (PPA), Verification of compatibility of the estimated economic capital etc..) On the other hand however it is becoming an increasingly routine for measuring Past performance and future.
From this point of view tends to consider the value of holding on the basis of future prospects and on the basis of expected returns and risk profiles of business initiatives to be taken. The key word which is built on the company's estimate is therefore the word "projection". The projections are in fact the basis on which the forecasts are constructed, which in turn are the basis on which the company builds its own commitments to third parties.
Whatever the reasons for which an assessment is made of an undertaking, the report of the assessment shall be reflected in a document which is technically called "appraisal". The appraisal is prepared in accordance with a scheme that in principle can be summarized as follows: identify the properties estimated, the estimator will describe the purpose and characteristics of the estimate, the assumptions and the evaluation process on which it is based, the methodology applied in the evaluation of the company and its conclusions of value. So we say that the lineup of the steps to follow can be summarized as follows:
-Definition of the objectives of evaluation and recipients of the report
-Definition of assessment and analysis on domionio (or determining the scope of the assessment)
-economic context in which the company operates.
-analysis of policies and strategies
-Historical Analysis of the results of the budget.
-Defining the date of the valuation
-Choice of assessment methods and parameters indicating the reasons for the choices.
-Performing calculations and checks. Considerations on the role of personal assessments of estimation. his is a very important point because one of the problems that emerged in the past is that is made too often resort to personal evaluations and too little in quantitative methods. The personal assessments are an essential part PEL estimation process, since it is the individuals to make the estimate, but bosogna consider very seriously the problem of personal bias. For example, several studies were found in the fact that the estimates made by those whose interests were coming under greater caution, proved to be distorted compared to what would otherwise have been.
-Sensitivity analysis of the results, scenario analysis, considerations of the likely error rates of the estimates. Conclusions-
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