Evaluating a firm and its different business units provides critical insights for business navigation and financing activities. This analysis describes the very essence of your business and its stability. In addition to the four standard financial statements, we can establish interim statements to follow trends, improve forecasts and adapt the business to the market.
Used to paint a complete picture of the business’ value, it is also important to consider the relationship network and others types of intangible value created, such as non-compete agreements and other contracts. This comprehensive approach allows for benchmarking, effective business coordination, a reduction of the cost of capital, and in case of a sale, the true value of this business unit. Moreover, the make-or-buy-decision can be estimated more precisely.