Business enterprise valuation for the purpose of attracting external financing

Business property and asset valuation for investment attraction

The realization of long-term strategic projects such as access to new markets, developing the new products and production modernization for a commercial enterprise, are rarely completed without an external source of funding. The two main sources of financing are borrowed funds or the offering of companys shares.

Any policy decision must be preceded by a valuation of the possible sources of funding, including an analysis of various factors: the capital structure, definitions of financial leverage, the ratio of debt to equity, the interest rate on a loan, the effect of increasing publicity of a company, the risk of "smearing" the capital structure if additional shares are issued, etc.

But the key factor in deciding on the source of financing is the value of the business and its change as a result of financial investments. The valuation of the borrowed funds effectiveness is not possible without an accurate business valuation. This task is very time-consuming, requiring special knowledge of all valuation aspects and it is better to entrust it to the most professional appraisers.

Swiss Appraisal regularly conducts such valuations for medium to large size businesses to determine investment needs and both the market and liquidation values of a company, which are essential, in equal proportion, to attract outside financing.
Swiss Appraisal offers the following:


To find out more about services related to valuation for attracting funding, please send a request via our website.

Also: