Commercial Business Valuation Model (VECO)
This technology offer is based on the development of valuation models for commercial businesses, particularly in sectors with high transferability, such as community pharmacies.
TECHNOLOGY DESCRIPTION
The technology offer consists of a sophisticated financial model implemented in Excel, specifically designed to value the goodwill of commercial businesses, with specialist expertise in the pharmaceutical sector. Unlike traditional methods that require on-site audits or full access to accounting records, the VECO model uses external indicators and sector-specific variables to project a business’s cash-generating capacity.
TECHNOLOGY APPLICATIONS
The VECO model is an essential strategic tool for:
- Financial Institutions: Risk analysis and the granting of loans for pharmacy acquisitions (LBOs, etc.).
- Investors and Shareholders: Assessment of purchase or merger opportunities without the need for exhaustive due diligence processes at preliminary stages.
- Public Authorities: Valuation processes or sectoral studies on the transferability of licences.
- Owners: Self-assessment of their business to plan succession or future sale processes.
ADVANTAGES AND INNOVATIVE ASPECTS
Current valuation models for commercial businesses, particularly community pharmacies, are basic models based on methodologies using multiples or discounted cash flows, with limited information.
The proposed model we offer applies the discounted cash flow methodology while incorporating up-to-date macroeconomic and sector-specific information, enabling more efficient valuations that more accurately reflect market conditions.
DEVELOPMENT STAGE
The model is already available for use and can be adapted to the specific characteristics of any community pharmacy or similar commercial business, providing an objective valuation that reflects market conditions.
APPLICATION SECTORS
- Pharmaceutical Sector (Community Pharmacies).
- Financial Consultancy and Valuation.
- Banking and FinTech Sector.
- High-turnover Retail.
PRINCIPAL RESEARCHER
Javier Reig Mullor – Department of Economic and Financial Studies