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What is valuation and how does it support M&A decisions?

Learn about economic-financial evaluation, its stages, and the deliverables presented by BBG.

By Business Builder Group · Help Center

Valuation is the assessment of a company's economic-financial value based on performance, cash generation capacity, outlook, and business risks. M&A refers to mergers and acquisitions. At BBG, the valuation proposal establishes a value reference to support strategic decisions, corporate negotiations, and investments.

Why does a value reference matter?

A structured evaluation helps discuss corporate negotiations, fundraising, growth, and merger or acquisition operations with explicit assumptions. The value reference alone does not determine the price of a negotiation: conditions, risks, parties' interests, and available information also influence the decision.

How is the BBG process organized?

The published schedule has four stages over 90 days: Diagnosis, with data and risk review; Assumptions, with drivers and scenarios; Projections, with results, cash flow, and simulations; Approval, with executive presentation, joint validation, and final adjustments.

What methodology and deliverables are presented?

The proposal describes calculation by Discounted Cash Flow (DCF), market references, scenario simulations, and sensitivity analysis. Final published deliverables include a valuation report and an editable financial model. Scope and information availability must be aligned for each company.

What information helps in the diagnosis?

The published process includes financial, accounting, and operational data; revenue, margin, and cash history; debts; working capital; business model; and risks. Talk to the team about the necessary documents and the appropriate channel to share them before sending company information.

Questions about capital

Does the valuation guarantee the sale of the company or investment raising?

No. Valuation provides a grounded reference for decision-making and negotiation. It does not represent a guarantee of a buyer, investment, final price, or closing of a transaction.

What is the valuation timeline presented by BBG?

The page presents a 90-day timeline, including Diagnosis, Assumptions, Projections, and Approval. Confirm the scope and data availability with the team.

What are the final valuation deliverables?

The published deliverables are a valuation report and an editable financial model, following an executive presentation, joint validation, and final adjustments.

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