Tag: Analysis
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How do we value companies in highly technical industries?(E.g. Solar, power plants, mining, etc.)
At ORNA, we specialise in financial modelling and valuation.For industries that require engineering or technical expertise, we rely on industry-specific reports provided by our clients to ensure our assumptions align with actual operational conditions. Examples include: These reports form the technical foundation of our financial forecasts.From there, we translate the information into revenue projections, cost…
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It’s beginning to look a lot like Christmas 🎄Peak season is coming… and for many businesses, sales are about to shoot up.
This is why, when we do a business valuation, we always ask for year-to-date performance (internal numbers are perfectly fine) and at least 3 years of historical data. Because not every business behaves the same throughout the year. Some are seasonal — Christmas, Chinese New Year, school terms, tourism periods, you name it. Some have…
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Can I get a business valuation from ChatGPT (or any AI tool)?
The answer is… yes and no. Yes — you can insert your company’s financial statements and ask AI to calculate a valuation. You’ll probably even get a clean-looking number, maybe with a DCF model attached. But the thing is — unless you know what to input, the result won’t be realistic. AI will happily crunch…
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How do you repay debt when you don’t have cash?
At the beginning of this year, Company A borrowed money from Company B.The deal was straightforward: repay the loan plus interest by year-end. But there was a condition.If Company A couldn’t repay in cash, the repayment would be in shares. So the big question became:👉 How much is one share of Company A actually worth?…
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“We’re just a small company, we don’t have projections.
This is what we usually get when we ask for a company’s forecast. But projections don’t need to be big complicated tables with hundreds of numbers. What we really need to know is simple: We ask these questions because in order to value a company, we need to forecast its revenue for the next…
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Things we consider when valuing a company
1️⃣ The past – What has the company actually achieved? We look at audited financial statements to see the real, proven performance — not just estimates. 2️⃣ The plan – Usually a 5-year projection from management. This includes revenue growth assumptions, expected profit margins, investment plans, and funding requirements. 3️⃣ The industry outlook – Is…
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When should you value a company using book value instead of future cash flow?
Not every business has a clear growth story.Sometimes, the value lies in what it already owns. ✅ Loss-making companies — no profits, but still have assets✅ Distressed businesses — when you’re thinking about liquidation✅ Asset-heavy companies — factories, real estate, etc. In these cases, book value gives you a better picture than DCF or P/E.…
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💸 What is a Discount Rate and Why Should You Care?
Imagine this:You’re offered $1 million today, or $1 million five years from now.Which one do you take? Most of us would take the money today — and that’s where the discount rate comes in. In business valuation, the discount rate reflects the time value of money and risk. It helps us calculate what future cash…
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“Can I get the company’s value within 2 weeks?”
We get this question a lot — and the answer is: yes and no. As consultants, our first step is to send over a list of required documents and key questions. From there, we begin building the valuation model. Typically, we need financial statements from the past 3–5 years (sometimes longer, especially if there were…
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Is This Deal Worth It?
“Is this investment too risky? When will I get my money back? Should I structure it as preferred stock? How much management power should I have?”At ORNA Company Limited, these are the types of questions we frequently receive from clients considering investments in other companies.To provide clear answers, we conduct a comprehensive business valuation and…
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