Valuation in Spain!<\/p>\n
Spain works very differently to the Netherlands.<\/p>\n
There is a difference between the enterprise value and the price paid for a company.<\/p>\n
The enterprise value is a number that is the result of a certain valuation method to determine the enterprise value.<\/p>\n
The price is the amount the buyer pays and is the outcome of a negotiation process.<\/p>\n
Price and enterprise value are usually not equal.<\/p>\n
In Spain they always think in the form of “I think it’s worth it”.<\/p>\n
Methods of calculating value in use<\/p>\n
There are roughly two approaches to arriving at a going-concern value:<\/p>\n
Methods that mainly look at historical figures and methods that revolve around future cash flows.<\/p>\n
There is something to be said for both methods, and in practice a mix of both methods is often used.<\/p>\n
This method of calculating value in use mainly looks at the past.<\/p>\n
The advantage of this approach is that it quickly gives a first indication of the value in use.<\/p>\n
The disadvantage is that the future of the company – which is, after all, what the buyer is primarily interested in – is hardly considered. In general, this method of calculating the business value leads to simple formulas such as:<\/p>\n
3 x the net profit<\/p>\n
0.75 – 1.5 x the annual turnover<\/p>\n
The major disadvantage of this method is that the enterprise value is based entirely on past results.<\/p>\n
But as with investing, these do not offer any guarantee for the future.<\/p>\n
Moreover, it does not consider other factors that can be very decisive for the enterprise value Spain also works a lot outside?<\/p>\n
How dependent is the business on the owner?<\/p>\n
Are large investments needed in the short term?<\/p>\n
Let us do a management buy in check and see what and how the company can be taken over. This always costs less than a company that you buy too expensively.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Valuation in Spain! Spain works very differently to the Netherlands. There is a difference between the enterprise value and the price paid for a company. The enterprise value is a number that is the result of a certain valuation method to determine the enterprise value. The price is the amount the buyer pays and is […]<\/p>\n","protected":false},"author":5,"featured_media":23942,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[111,1],"tags":[298,638,276,563,562,607,586],"class_list":["post-23947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artikel-spanje","category-article","tag-horeca-advies","tag-horeca-advies-en","tag-hospitality-advice","tag-investering-en","tag-investering-spanje-en","tag-sale-and-leaseback-en","tag-zelf-je-hypotheek-afsluiten-in-spanje-en"],"_links":{"self":[{"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/posts\/23947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/comments?post=23947"}],"version-history":[{"count":3,"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/posts\/23947\/revisions"}],"predecessor-version":[{"id":23955,"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/posts\/23947\/revisions\/23955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/media\/23942"}],"wp:attachment":[{"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/media?parent=23947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/categories?post=23947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/horeca-spanje.com\/en\/wp-json\/wp\/v2\/tags?post=23947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}