Business valuation is not a common practice in the business world in our region. The vast majority of business owners still do not understand its importance and the benefits it brings, and only resort to it when they find themselves in a situation that leaves them no other alternative.

For sound business management, it is advisable for an entrepreneur to periodically measure or quantify the value of their company. This is primarily for two reasons: 1) because such measurement or quantification will provide information about the true value of the business, which is likely very different from the net worth shown in the financial statements, and 2) because the evolution of the company’s value will indicate the effectiveness of its management.

At Gelso we support you in the process of estimating the value of a business and the shares that represent rights over the cash flows produced by that business.