They are deposits of minerals, fossils, gems and water existing in the interior or outcropping on the surface of the earth and have economic value. The best known deposits are gold, iron, oil, limestone and mineral water, but there are several other types of materials that form the deposits. The deposits valuation considers several factors, such as: geology, reserve (measured, indicated, inferred), legal authorization for the mining, environment, production capacity, useful life of exploration, production process, among others. The economic value of the deposit depends on gross and net revenues, cost production, operating expenses, taxes, profit and other relevant economic…Read more
Cannabis-producing companies rely on legal authorization to operate and market their products for medical or recreational use. In the US, the average growth in production and consumption is 16.4% per year and the market is estimated at 40 billion dollars. The “waves” of cannabis production and consumption are: (1) decriminalization; (2) medical adoption; (3) massive investments; (4) bubble burst, deflation and market saturation; (5) stratification, consolidation and market integration, similar to alcohol. The risks for this business are: legal restrictions, price reductions, excessive taxation and advertising limitation. The Cash Flow method must consider efficiency, profitability, production scale, costs, brand, distribution…Read more
Corresponds to companies’ value that in the long term (over 20 years) have superior performance when compared to companies that in the short term (up to 5 years) may have superior performance, but also have periods of negative or below average performance, resulting in an average long-term performance lower than long-term companies. The results (profits/losses) that long-term companies delivered to their stakeholders over the years (20 years or more) is greater than the results (profits/losses) of short-term companies. This analysis is used to define the long-term value of companies, being widely used by institutional investors….Read more
We all know that parks, nature reserves, hospitals, cemeteries, businesses and other assets have value to the local community, but unless they are the owners, we rarely try to calculate that value. The social (economic) value generated by an asset from the perspective of users (population) can be defined as everything that promotes people’s well-being and/or improves the quality of life of the population. What is the (economic) value of this? What are the advantages of this? What is the cost of this? What’s the payoff from this? What is your opinion on this? We await your opinion….Read more
Economic losses are financial losses in commercial contracts or personal injuries that may be permanent or temporary. The repair of damages requires period analysis, repair, restart of operation and market resistance to return to operations. The most used method is projections (cash flows back and cash flows forward). The result of this valuation is fair compensation for the loss….Read more
Companies operating in different countries incorporate different cultures and have the ability to find solutions with greater agility. The improvement of techniques and experiences in multiple markets turns into benefits for its customers, meeting international and local standards. Mynarski operates directly in 22 countries with partners on 5 continents. The richness of our cultural diversity and experiences contributes to the development of our customers and strengthens the markets. Invest in our solutions….Read more
The evaluation of bars, restaurants and nightclubs must consider the specific characteristics of each business and the methods commonly used are the Discounted Cash Flow, Market Approach or Multiples. The main characteristics that influence the value of these businesses are the size, location, type and products offered. Some items severely affect economic results, such as: excess of products offered (food and beverages); bad management; little team training; neglect design and functionality; underestimating the strength of marketing; little working capital. In addition to these factors, the owner(s) must be aware of the risks of violence, market instability and the high possibility…Read more
The market is shaped by the forces that together create trends that affect the values and prices of all market participants. The effects and consequences of these forces can be short-term or long-term and are always analyzed in our valuations. These are the following main forces that shape the market: International Effect: corresponds to the financial flow of investors and the financial flow of foreign trade that can stimulate investment; Participants Effect: competitiveness, based on quality and price, entry of new participants and exit of participants; Offer and Procurement Effect: affected by human behavior, threats of substitutes, bargain between clients…Read more