Financial Business Performance
Do you know the value of your business?
Do your assets return enough money for your investment?
Do your earnings grow each year but the investment rate remains steady?
If I tell you a company with net earnings of USD 10M per year is a “profitable business”, well I’m not showing you not the whole picture. How would your view of a profit business change if I told you that it had USD 350M of assets? This means the shareholders have to invest at least USD 350M to make a USD 10M return. Less than a 3% return on assets (ROA) is not great.
Allofit Group Corp has the advice of financial experts who will provide you with an external view (outside of the forest) to measure the financial business performance asked by shareholders, investors, employees, labor union, creditors, bondholders, and management.
There are many reasons to have an up-to-date business valuation, such as: sell the business due to divorce, retirement, or other family reasons. Also, you may need debt or equity financing for financial reorganization, expansion, etc.
To best measure your business’s financial performance, we ask for financial statements audited from the previous five years (depending on the type of business) including the internal control letter. With this information, we can look deeper and seek out margin growth rates, earnings stability, financial strength, and efficiency growth.
For business valuation, we ask for your financial statements audited from the previous ten years including the internal control letter, business plan forecast, and feasibility. With this information, we can start to value your company with the method Discounted Cash Flow (DCF).