Build Sustainable Value , Build sustainable captital

Business valuation can be used to assess the fair worth of a company for a variety of purposes, including selling value, partner ownership, taxation, and even divestment procedures. Owners frequently seek impartial estimates of the worth of their businesses from expert business assessors.
Valuation could depend on number of factors. When it comes to the valuation exercise, it boils down to how much value we can generate using the current structure over a period of time. Methods like Discounted Cash Flow (DCF) and few others look at 2 main fundamental elements

1. Current Net Working Capital
2. Potential Future generated cash

While there are few other factors, but the above 2 are the most important ones. Point 1 is straight forward as that comes from the Financials direct. While Point 2 can be done in variety of ways, there are 4 main factors that generally act as levers

1. Ability to use the current Financial Capital to drive future additional cash – For example, investment strategy etc
2. Ability to untap the Technology IP the company possesses to drive additional cash over a period of time
3. Ability to use the inherent people capability of the company to drive additional future cash
4. Ability to use the inherent processes/practices that affect the society & environment in a positive way

While Financial Capital is slightly tangible, rest of the capitals are intangible in nature. It is the intangible nature of the remaining 3 capitals that could drive the value of companies. While these intangible components make the valuation exercise a bit circumspect, it is actually very important to make these intangible elements justifiable through valid operational metrics. The operational metrics actually will bring a slight sense of order to the valuation process as these operational metrics then can be attached a projected cash flow outcome.

QuarkCube Platform is ideally positioned to bring that blend of Operational metrics alignment to Financial Future Cash Flow Projections so that different valuation outcomes can be measured and evaluated.

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