How do we determine the value of a business?

WellCapital can help – we perform business valuations within the context of the prevailing market and business risks.

Determining the value of a business cannot happen in isolation of prevailing market conditions and context of existing ownership customised for business specific risk and advantages. An independent valuation that takes all of this into account is vital in equipping business owns and managers with the necessary understanding before entering negotiations. This exercise also creates the platform for maximising value in a transaction through to post-deal integration.

We make use of more than 5 different valuation techniques that borrow from the core needs of business owners, asset-intensity, dividend flows and industry practices to find the correct balance in price guidance. The price of a business is ultimately determined by a willing buyer paying the asking price.

WellCapital provides corporate finance advisory solutions with the focus on business valuations, financial performance evaluations and due diligence assessments. We act as lead or change-agent in business turnaround and interventions which can result in new or amended busines models, capital structures, mergers, acquisitions, disposals, business processes and forensic investigations.

WellCapital provides treasury advisory solutions with the focus on the various financial risk portfolios (liquidity risk, foreign exchange risk, commodity risk) arising as exposures from the underlying business models in order to develop appropriate risk management policies and strategies with performance metrics. The reconciliation of these performance metrics with the treasury accounting results is undertaken to provide both operational and strategic understanding.

The liquidity risk management includes:
- short-term and long-term cashflow forecasting using predictive modelling to identify the funding requirements and facilitate the operational and strategic decision making
- mapping of all bank accounts and optimisation of banking and lending facilities
- restructuring and refinancing of asset and liability portfolios
- interest rate risk and credit risk management
- obtaining credit rating and debt issues
- optimisation of working capital management
- alignment of cashflow forecasting with operational budgets and variance reporting based on actual cashflows
- development of local and global cashflow pooling
- implementation of intercompany financial support and transactions
- obtaining the necessary regulatory approvals to ensure compliance and control
- the treasury functions and responsibilities within the organisation should have the correct structures and systems to realise the potential positive strategic impact and value added.

WellCapital provides expert and independent advisory services to Board committees and within legal proceedings.

WellCapital prides itself in providing value‐added solutions and services to a wide variety of clients and markets which transcends industry and size and offer the services in a variety of ways to accommodate the requirements and priorities of our clients

ADDRESS

15 Pulipit Street, Southdowns

PHONE

+27 83 556 2466

EMAIL

dries.ferreira@wellcapital.co.za