Valuations
Providence Capital has broad experience in developing complex valuation models applying the full set of valuation methodologies normally used by sophisticated investors, including different variations of the following methods:
- Discounted Cash Flow analysis (DCF)
- Dividend Discount Models
- Transaction Comparables
- Trading Comparables
- EVA
Valuations are increasingly used for a wide range of purposes, including one or more of the following:
- Facilitate the exit of an existing shareholder, or the entrance of a new investor
- Provide a reference price for transfer of shares between partners of unlisted or illiquid companies
- Comply with IFRS requirements
- Have a “mark-to-market” of illiquid investments
- Understand whether a business is generating economic value
- Monitor value creation or destruction over time
- Evaluate management performance