An appraisal gives a focused view of the true value of a company. This value depends on how much benefit you receive compared to the risks involved. Commercial relationships, current contracts, and market conditions are also evaluated. Companies are valued based on their "profitability" and "risk". For a complete business appraisal, it is necessary to have an exhaustive review of the historical financial, administrative, contractual, and operational data to obtain the real value of the company.
The key points are included as follows:
Forecasting sector analysis where the company operates
Company Analysis: focused on the project’s finances, seeking to highlight its strengths
Business Model Structuring: a model must be created that allows investors to check the operational viability and market stability
Market Research
Asset Appraisals (property, plant, and equipment)
Financial Projections
Audited financial statements for the last 3 years