El Sagrado Corazón de Jesús School Valuation

Testimonial of work of Valuation of the School El Sagrado Corazón de Jesús, by SUNBELT

By Guillermo González, Member of the Board of Directors of SCJ School

At the end of January 2020, Sunbelt Central America concluded an advisory work and presented the valuation data of El Sagrado Corazón de Jesús School, with the purpose of knowing not only the value of the property (land and assets) but the business, to determine operating options, to increase its value and to improve the profitability of shareholders.

It was a very good experience working with Sunbelt's professional team, because apart from the fact that they handled the information very confidentially, they explained very well the historical financial performance, as well as the projected, this based on different scenarios and considering certain assumptions regarding expenses. and income.

Although we already sensed it, working with Sunbelt validated the importance and effect of the number of students or end customers who buy our educational service, which has a direct impact on profits and therefore on the value of the business. We were able to better understand what our closest competition is doing and what options we have to reinvent ourselves and make our value offer more attractive.

They also explained to us the methodologies and parameters used to determine the most probable range and the most probable sale price of this business, considering the methodologies of market approach, income approach and cost approach.

We also understood better some concepts, such as Discount Rate, EBITDA multiples, Return on Investment and Value. It was very interesting to discuss with Sunbelt, the different decision alternatives, which at this time must analyze and evaluate the SCJ Directive, including operation and options for use of the land and facilities.

In addition, they offered us their experience with the implementation of the Value Builder methodology, to take actions in the coming months to increase the value of the business.

This experience opened our eyes a lot, to realize where we stand at this moment, what has happened over the years and what are the scenarios we can think about in the future. Thank you, Sunbelt, for such timely and relevant advice and support.