“The true value of things is the effort and trouble of acquiring them.” Adam Smith.
Valuation, in addition to assigning a reference value for an investment, promotes the analysis of uncertainties, captures the risks involved and supports the definition of the business model. It is fundamental to enabling the entry of venture capital and angel investors into a business.
To achieve results, building a valuation involves a detailed analysis of the business and its sector of activity, in order to identify the most appropriate valuation method (FCD, TOR, multiples…). To determine value, a model must be built to project scenarios based on market and business operation assumptions.
More than certifying the value, valuation validates the viability of a business model.
