The Paraguay-Brazil Chamber of Commerce (CCPB) hosted the event "How Much Is My Company Really Worth?", bringing together specialists to discuss traditional mechanisms for valuing companies in buy-and-sell transactions. The meeting takes on added relevance given the growing interest of foreign investors in Paraguayan firms, driven by the country's dual investment-grade rating.
CCPB President Fabio Fustagno led the conversation with Martín Peters, general director of Alpax Paraguay; Rodrigo Fernández, a partner at the law firm Vouga Abogados; and Federico Arana, head of Wholesale Banking at Itaú. Business leaders and senior executives attended the event.
The specialists pointed to transparency as an essential factor in navigating a sale process, building trust between the parties in the face of potential disagreements or unforeseen events. Confidentiality was also highlighted as a key asset in closing transactions.
Peters cited three methodologies commonly used to establish a company's price in mergers and acquisitions. The first, called "comparable transactions," involves looking at previous sales of companies in the same sector to determine a value based on those figures. Second, he mentioned "market multiples," which rely on public data from publicly traded companies to arrive at a cost estimate. Finally, he cited "discounted cash flow," the least used of the three because it is based on projections about the company, which can be questioned due to its subjective nature.
Peters noted that the exception to this last methodology occurs when dealing with a company whose primary asset is agricultural land. In such cases, it is necessary to analyze the wealth that can be generated from the area over a given period, that is, to assess the "appreciation over time." "The deal closes once that future potential can be demonstrated," the specialist concluded.