Tag: Consult
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Why we have so many questions when doing a business valuation
One of the most common methods we use to calculate a company’s value is the Discounted Cash Flow (DCF) model. This approach requires not just the historical performance, but also a 5-year forecast — which means we need to deeply understand how the business actually operates. If the company sells products, we break things down…
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Can we do a business valuation before year-end? Or do we have to wait for the audited financial statements?
As the year comes to a close, we often get this question from clients who want to start a valuation but aren’t sure if they should wait until the new financials are ready. The short answer is no — you don’t have to wait. What we usually need are: If it’s a listed company, we’ll…
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💡 Why You Should Always Read the Auditor’s Comments
We’re currently gathering information for a business valuation, and one of the first documents we ask for is the audited financial statements. Instead of jumping straight to sales, profit, or debt levels,we always start with the very first page — where the auditors put their comments and signature. Because if there’s anything that doesn’t sit…
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Why some revenue are useless in business valuation
Sometimes when we do business valuation using the discounted cash flow (DCF) method, we actually have to ignore some parts of the revenue. Here’s why 👇 1️⃣ One-time event – it happened once and won’t happen again.2️⃣ Discontinued operation – the company no longer operates that business line, so it shouldn’t appear in future forecasts.3️⃣…
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“The company is a petrol station… but next year we’ll invest in transportation too.”
We often hear something like this during valuation projects. When we do a business valuation using the DCF (Discounted Cash Flow) model, sometimes the company hasn’t fully decided on their next move. Maybe they’re unsure which project to pursue, or whether they should expand or stay focused. That’s where scenario analysis comes in.We can build…
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How are we doing compared to our peers?That’s a question we often get from customers.
They want to know —👉 Is our profit margin good enough?👉 Are we spending too much?👉 Or maybe investing too little? Usually, we can benchmark against listed companies since their annual reports are public and quite detailed. For non-listed companies in Thailand, you can also check the short version of financial statements on the DBD…
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Who would be interested in our company?
A customer recently asked us this question — Usually, we see potential buyers who are somehow related to your business: Basically, someone who would benefit when the two businesses combine — when 1 + 1 > 2. But not all deals are like that.Some buyers look to diversify, stepping into a completely different business if…
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💡 Should a company pay out all retained earnings before bringing in a strategic partner?
One of our clients is currently exploring an M&A deal with a strategic investor.Before the transaction, they’re considering paying out a large amount of retained earnings as dividends. Why?Because if it’s not paid before the deal, the new shareholders would also share that retained profit — even though it was earned before they joined. That…
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💡 Why is Book Value sometimes higher than Market Value?
We were recently asked by a client:“Why is the book value (shareholders’ equity in financial statements) higher than the market value (stock price × total shares)?” Let’s break it down. 1️⃣ Book Value 2️⃣ Market Value 📊 Key insight: ⚠️ Takeaway: 💬 Curious how this applies to your business or investment?Drop us a message or…
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Why is PE Ratio so popular?
Even though the Price-to-Earnings (PE) ratio is not the most reliable way to value a business, it’s by far the most popular—especially for non-listed companies. Why?✅ It’s quick.✅ It’s easy.✅ You can do it yourself. Unlike the Discounted Cash Flow (DCF) method, which takes weeks (sometimes months) to build assumptions and projections, PE gives you…
ORNA Company Limited 