{"id":48887,"date":"2020-12-18T09:56:57","date_gmt":"2020-12-18T08:56:57","guid":{"rendered":"https:\/\/techma.bakertilly.es\/?post_type=diccionario&#038;p=48887"},"modified":"2025-03-10T13:58:54","modified_gmt":"2025-03-10T12:58:54","slug":"ss-a1-company-valuation-advisor-impact","status":"publish","type":"diccionario","link":"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/","title":{"rendered":"Valuation of the company: How can an M&amp;A Advisor impact it?"},"content":{"rendered":"<p>Entrepreneurs are often reluctant to engage an M&amp;A advisor for an initial valuation of the company that will later be used as a basis for the company's future development. <a href=\"https:\/\/techma.bakertilly.es\/en\/vende-tu-empresa\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/techma.bakertilly.es\/vende-tu-empresa\/\" rel=\"noreferrer noopener\">will be sold<\/a>. <\/p>\n\n\n\n<p>Many business owners have the misconception when considering selling their business that the most difficult part of the process is finding potential investors, when in fact this should be the least of their worries. There are other <strong>critical factors, e.g., accompaniment or assessment<\/strong>.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/images.assetsdelivery.com\/compings_v2\/dolgachov\/dolgachov1611\/dolgachov161101688\/65111764.jpg\" alt=\"Company valuation is a slow and complex process that requires skills such as those of a trained and experienced advisor. \" style=\"width:494px;height:329px\" title=\"\"><\/figure>\n\n\n\n<p>When the owner of a company actively negotiates with a buyer, the owner believes that the difficult part of the process is over, but he or she is wrong. In reality, the most complex parts of the M&amp;A process are just beginning:<strong> The phase of&nbsp;<a href=\"https:\/\/cincodias.elpais.com\/cincodias\/2018\/11\/20\/pyme\/1542745274_511636.html\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/cincodias.elpais.com\/cincodias\/2018\/11\/20\/pyme\/1542745274_511636.html\" rel=\"noreferrer noopener\">Due Diligence<\/a>&nbsp;and the drafting of the sales agreement<\/strong>.&nbsp;&nbsp;<\/p>\n\n\n\n<p>It is in these latter steps that a smart and experienced buyer can systematically reduce the proposed valuation, diminishing the seller's product one seemingly small step at a time.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The M&amp;A advisor earns his fee by defusing problems and avoiding attempts to renegotiate deals. He is also an important pillar in the creation of the investor list, preparation of materials, meetings, etc.&nbsp;<\/p>\n\n\n\n<p>But no doubt, <strong>the most valuable part of an advisor's job is to ensure that the final transaction is what the seller considers to be a successful outcome.<\/strong><br><br><br>&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Contents\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#%C2%BFLa_valoracion_de_la_empresa_depende_de_las_capacidades_del_asesor_de_M_A\" >Does an advisor have a special ability to impact the company valuation?&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#1_La_competencia_de_un_proceso_ordenado\" >1. Competition from an Orderly Process&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#2_La_fuerza_de_los_subyacentes\" >2. The strength of the underlying&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#3_Honestidad\" >3. Honesty&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#4_Las_necesidades_y_deseos_del_comprador\" >4. The needs and wishes of the buyer&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#5_Motivacion_del_vendedor\" >5. Seller Motivation&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#6_Tenor_de_los_tiempos\" >6. Tenor of the times&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/techma.bakertilly.es\/en\/como-hacer\/ss-a1-valoracion-de-la-empresa\/#7_Habilidad_del_asesor\" >7. Adviser's skills&nbsp;&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%C2%BFLa_valoracion_de_la_empresa_depende_de_las_capacidades_del_asesor_de_M_A\"><\/span><sup><sub>Does an advisor have a special ability to impact the company valuation?&nbsp;&nbsp;<\/sub><\/sup><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One mistake some entrepreneurs make is to expect a consultant to magically get a buyer to raise an offer.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image alignright is-resized\"><img decoding=\"async\" src=\"https:\/\/images.assetsdelivery.com\/compings_v2\/fizkes\/fizkes1908\/fizkes190800475\/129154013.jpg\" alt=\"\" style=\"width:426px;height:284px\" title=\"\"><\/figure>\n\n\n\n<p>M&amp;A advisors do not have magic words to get buyers to increase their offers. Instead, valuation is the encounter with the competition, the strength of the underlying business, the honesty, needs and desires of the buyer, the motivation of the seller, the tenor of the times and the ability of an advisor to conduct an orderly sales process that <strong>\u00abdespeje el mercado\u00bb<\/strong> generating multiple offers.&nbsp;<\/p>\n\n\n\n<p>Let's take a look at the different ways in which an M&amp;A advisor can impact a company's valuation:<br><br><br>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_La_competencia_de_un_proceso_ordenado\"><\/span>1. Competition from an Orderly Process&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Executing a sale mandate means that the M&amp;A advisor will create competition. Competition creates options, and running in the hands of a capable advisor can be a valuation advantage. <strong>Only after an adequate amount of competition has been created can an advisor's negotiating skills be harnessed to maximise the company's valuation.&nbsp;<\/strong><\/p>\n\n\n\n<p>The execution of an orderly process is facilitated if the adviser has an <strong>negotiating team<\/strong>. A single advisor (not a team of advisors) who has to do everything may be taking on too much responsibility to do an effective and efficient job for the client. Responsibilities of team members include:&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image alignright is-resized\"><img decoding=\"async\" src=\"https:\/\/images.assetsdelivery.com\/compings_v2\/fizkes\/fizkes1902\/fizkes190200036\/116459515.jpg\" alt=\"m&amp;a advisormp;a\" style=\"width:401px;height:267px\" title=\"\"><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span style=\"color:#2fa300\" class=\"has-inline-color\">Preparation of materials<\/span><\/strong>The following activities can be carried out: gathering the necessary information to create a CIM (sales booklet), disseminating financials, conducting market research, creating a list of buyers, gathering materials for due diligence, maintaining an online data room.&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>&nbsp;<strong><span style=\"color:#26a300\" class=\"has-inline-color\">Implementation of the agreement<\/span><\/strong>The following are some of the key elements of the project: disseminating information, obtaining confidentiality agreements, requesting tenders, organising meetings, handling enquiries and follow-up requests.&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li><strong><span style=\"color:#45a21a\" class=\"has-inline-color\">Successful<\/span><\/strong>: crafting a deal that makes sense for the seller, avoiding attempts to lower the company's valuation and\/or change the terms, making sure the deal closes.&nbsp;<br><br>&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_La_fuerza_de_los_subyacentes\"><\/span>2. The strength of the underlying&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A company with growing revenues, a strong bottom line, no customer concentrations and a strong management team will be more desirable than a company that loses money. Having multiple options means that the seller has a much better chance of maintaining the valuation on the strong offer.&nbsp;&nbsp;<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Honestidad\"><\/span>3. Honesty&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One sure way to thwart an opportunity to make a deal is to mislead and misrepresent. L<strong>dishonesty will quickly ruin the credibility of the seller.<\/strong>The company's valuation would be tarnished and perhaps make the deal virtually impossible to close.&nbsp;<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Las_necesidades_y_deseos_del_comprador\"><\/span>4. The needs and wishes of the buyer&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A buyer who wants a particular company more than all others is more likely to pay a higher price. The best way to find such a buyer is to <strong>clearing the market<\/strong>.<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Motivacion_del_vendedor\"><\/span>5. Seller Motivation&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If a seller has few options and is desperate to do a deal, it will lower the valuation. A seller at the helm of a solid financial company with multiple offers in hand will be in a much stronger negotiating position.&nbsp;<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Tenor_de_los_tiempos\"><\/span>6. Tenor of the times&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>&nbsp;Buyer demand now far outstrips the supply of companies coming to the market and this is driving up valuations.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>The current low interest rates make it difficult for a business owner to replace business income with fixed investment income. This reduces sellers and puts further upward pressure on valuations.&nbsp;&nbsp;<br><br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Habilidad_del_asesor\"><\/span>7. Adviser's skills&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>El mayor valor que dan los asesores a un cliente es en los \u00faltimos d\u00edas antes del cierre. Una valoraci\u00f3n fuerte no es el resultado de las \u00abpalabras m\u00e1gicas\u00bb de un consejero. En su lugar, es la confluencia de una multitud de acontecimientos, todos orquestados por las manos de asesores conocedores y experimentados.&nbsp;<\/p>\n\n\n\n<p>Magical assessments can be had, but they are not the result of magic, they are the result of skill, foresight, planning, experience and execution.&nbsp;<\/p>\n\n\n\n<p>Download the complete guide to company valuations here:<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f65332-o1\" lang=\"es-ES\" dir=\"ltr\" data-wpcf7-id=\"65332\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/diccionario\/48887#wpcf7-f65332-o1\" method=\"post\" class=\"wpcf7-form init cf7mls-no-scroll cf7mls-auto-return-first-step cf7mls-no-moving-animation\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\" data-trp-original-action=\"\/en\/wp-json\/wp\/v2\/diccionario\/48887#wpcf7-f65332-o1\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"65332\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"es_ES\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f65332-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_recaptcha_response\" value=\"\" \/>\n<\/fieldset>\n<div class=\"llamadanombre\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Name*\" value=\"\" type=\"text\" name=\"your-name\" \/><\/span>\n\t<\/p>\n<\/div>\n<div class=\"llamadaemail\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"your-email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email*\" value=\"\" type=\"email\" name=\"your-email\" \/><\/span>\n\t<\/p>\n<\/div>\n<div class=\"llamadatel\">\n\t<p><span class=\"wpcf7-form-control-wrap\" data-name=\"text-24\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text\" aria-invalid=\"false\" placeholder=\"Company\" value=\"\" type=\"text\" name=\"text-24\" \/><\/span>\n\t<\/p>\n<\/div>\n<div class=\"llamadaaceptar hidelabel\" style=\"font-family: Roboto, Sans-Serif; 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font-family:Roboto, Sans-Serif; text-align:center; z-index:100;\">\n\t<p><strong>On which topic would you like to receive information?<\/strong><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"segmento\"><span class=\"wpcf7-form-control wpcf7-checkbox\"><span class=\"wpcf7-list-item first\"><label><input type=\"checkbox\" name=\"segmento[]\" value=\"Venta de empresas\" \/><span class=\"wpcf7-list-item-label\">Sell a company<\/span><\/label><\/span><span class=\"wpcf7-list-item\"><label><input type=\"checkbox\" name=\"segmento[]\" value=\"Compra de empresas\" \/><span class=\"wpcf7-list-item-label\">Buy a company<\/span><\/label><\/span><span class=\"wpcf7-list-item last\"><label><input type=\"checkbox\" name=\"segmento[]\" value=\"Otros\" \/><span class=\"wpcf7-list-item-label\">Other<\/span><\/label><\/span><\/span><\/span>\n\t<\/p>\n<\/div>\n<div style=\"text-align:center; margin-left:50px!important;\">\n\t<p><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Send\" \/>\n\t<\/p>\n<\/div>\n<style>.hidelabel .wpcf7-list-item-label {display:none;}\n<\/style><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<input type=\"hidden\" name=\"trp-form-language\" value=\"en\"\/><\/form>\n<\/div>","protected":false},"author":8,"featured_media":49049,"template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"paso-howto":[2227],"sectores":[],"class_list":["post-48887","diccionario","type-diccionario","status-publish","has-post-thumbnail","hentry","paso-howto-venta-valoracion"],"acf":[],"_links":{"self":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/diccionario\/48887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/diccionario"}],"about":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/types\/diccionario"}],"author":[{"embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/users\/8"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/media\/49049"}],"wp:attachment":[{"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/media?parent=48887"}],"wp:term":[{"taxonomy":"paso-howto","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/paso-howto?post=48887"},{"taxonomy":"sectores","embeddable":true,"href":"https:\/\/techma.bakertilly.es\/en\/wp-json\/wp\/v2\/sectores?post=48887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}