Company evaluation is a complex activity whose goal is to estimate with accuracy the value of a going concern, of a company or of an entire group of companies. There are different evaluation methods that are chosen for a specific transaction and therefore the type of business and the goal of the evaluation.

The principal evaluation methods are:

  The Net Worth method.

  The Profit method.

  Mixed methods.

  The Financial method.

  The EVA method.

Why an evaluation is performed?

The reasons for an evaluation are several, but they may be collected in groups:

  A company is evaluated because of management needs. Evaluating a company grants important insights related to the global efficiency degree of the company thus permitting to evaluate the internal strategies to take for the immediate future.

  A company is evaluated for needs which are requested for extraordinary transactions. Activities such as mergers, acquisitions, contribution in kind, sales, transfers of strategic assets, etc., require the respect of rules and provisions supplied by skilled people.

STSMI supports clients, domestic or international, in evaluation activities of companies and going concern.

The legislator permits the Company to modify its company structure.

The modification of the company’s nature maybe due to two main reasons:

  The business growth.

  The necessity to answer to different and major market needs.

The transformation process of a capital company into another capital company is not covered by the civil code. Such process has the characteristic to leave unmodified the capital autonomy of the company and to have no effects on the shareholders’ liability. The shareholders liability has an important effect in case of transformation of the company into a S.a.p.A.

The transformation process of a company made up of individuals into a limited company is governed by D.L. 91 dated June 24, 2014.

STSMI’s Professionals support companies in their growth path.

The Financial Statement is a document whose drafting is mandatory by law. This document collects a lot of information regarding the organization and its management, that are used to produce economic, financial and capital analysis, in order to obtain insights for the management’s analysis.

The whole of these activities brings to the financial statement analysis, technical instrument that studies the economic results deriving from company’s activities. The financial statement analysis focuses the attention on:

  Economic situation, which determines the productivity of the company defining the capacity to generate profits.

  Financial situation, which determines the capacity to face a loan repayment.

  Capital situation, which determines the ratio between assets and debts.

The financial statement analysis, through a targeted interpretation of the financial statement’s indexes, allows the projections on the company’s performances soon supplying the information on which an optimized and targeted management can be elaborated.

STSMI offers the client its skills in the process analysis and drafting of the Financial Statement analysis.

The reclassified Financial Statement is a sort of re-working of the Financial Statement, a document which contains the main information about the P&L, financial and capital of the company. With the Financial Statement reclass., data contained in the Assets and Liabilities and in the P&L, are re-worked using certain Financial Statement indexes that supply relevant information on the financial-economic situation of the company.

The Reclassified Financial Statement has the purpose to let the Financial Statement reading faster and simpler, focusing the attention on the information of major interest for the analyst.

The indexes follow certain logics of:

  Capital and Financial Strength.

  Profitability (ROE, ROI, ROA, ROS, EBITDA, EBIT).

  Liquidity.

  Development.

These indexes represent the profitability ratio on own resources and third parties’ resources.

STSMI supports the client in all reclass operations on the Financial Statement’s accounts giving the availability of its own experts.