
Frequently Asked Questions
Frequently asked questions about Arias y Asociados
Direct answers about how we work and our methodology, so you can decide with the full picture.
Methodology
How we work with you
How does the work process with Arias y Asociados go?
It starts with an initial diagnosis to understand your objective, followed by a scope proposal, after which our team of specialized expert appraisers selects the appropriate methodology for the analysis. On some projects, we visit your facilities to collect the necessary information.
What is AriaVal?
It is the Arias y Asociados methodology for Strategic Value Architecture. It examines how your company's value is structured, where it is exposed, how your decisions affect it and what to prioritize from there, in a session where the findings are presented to your management.
How long does the process take?
The time varies according to factors such as the number of assets and locations. Timelines are defined in the proposal.
Investment and billing
What the investment in a project depends on
What is the investment for a valuation with Arias y Asociados?
The investment depends on the scope of your project: number of assets, locations and timeline. With that information, Arias prepares a proposal tailored to your project.
How does billing work?
Billing is defined in the initial proposal, adjusted to the scope and duration of the project.
About Arias y Asociados
What you can verify about us
What is the reach of Arias y Asociados?
The coverage of Arias y Asociados extends to corporate groups with operations throughout Latin America.
What accreditations back Arias y Asociados?
Current registrations with the American Society of Appraisers (ASA), Mexican College of Appraisers (COVAMEX), Mexican College of Mechanical and Electrical Engineers (CIME), Mexican Institute of Valuation (IMV), IGECEM (State of Mexico) and the National Banking and Securities Commission (CNBV).
Do Arias appraisals have legal and tax validity?
We hold more than 10 registrations with institutions that endorse us, both nationally and internationally.
Technical concepts
The vocabulary you will need
What is the difference between market value and replacement value?
Market value reflects what an asset is worth in the market today, considering its age and condition. Replacement value is what it would cost to acquire an equivalent new asset. Each basis serves a different purpose: market value for a sale, replacement value for insurance coverage.
What does remaining useful life mean?
It is the time an asset can keep operating under normal conditions before it requires replacement. It is estimated by considering its physical condition, maintenance and use in addition to its age.
What is the difference between valuing tangible and intangible assets?
Tangible assets have a physical existence: buildings, machinery, equipment, inventory and vehicles. Intangible assets include brands, patents, copyrights, software and trade secrets. Each type is valued with different approaches: market, replacement and useful life for tangible assets; market, cost and income for intangible assets.
Value strategy
From value to decision
What decisions can a company make after learning the value of its assets?
The technical judgment behind the value is what makes it possible to decide when to sell or keep a business unit, how to negotiate an insurance coverage renewal, which assets to prioritize in a capital investment, or which arguments to bring to a refinancing table, among others.
What factors are creating, preserving or reducing a company's value?
A company's value changes through tangible factors (the condition and useful life of its physical assets), intangible factors (brand, customer base, market position) and the operational and financial decisions made along the way. Identifying which ones are building value and which are eroding it is the first step of any strategic reading of value.
How do you know whether to keep, renew, sell or reassign an asset?
The decision depends on comparing the asset's replacement value, remaining useful life and real productive capacity against what it would cost to replace it or what would be obtained by selling it. That comparison, made with technical judgment, turns value into a specific decision for each asset.
How can a valuation be used to prioritize capital investments?
By knowing which assets generate the most value per unit invested and which are losing productive capacity, management can channel the available capital to where it performs best.
How does knowing the value help improve a negotiation?
Entering a negotiation with a well-founded reading of the value of what you own sets a floor and gives you arguments that hold up with any counterpart, instead of depending on the value the other party proposes.
How can you measure whether a decision increased or decreased value?
The value of the company or the asset is compared before and after the decision, under the same methodology and the same assumptions. That comparison under a constant criterion is what separates a real change in value from a simple accounting variation.
What information does management receive besides the value?
Besides the value, management receives the full structure behind it: what supports it, where it is exposed, how decisions already made or yet to be made affect it, and what to prioritize from there. It is the difference between knowing how much something is worth and understanding why it is worth that.
Which areas of the company should take part in a value-based strategy?
Beyond Finance, it is advisable to involve Controllership, Risk departments, Fixed Assets or Operations (who know the real condition of the assets), Legal (for the contractual implications) and, in higher-impact decisions, General Management. Cross-checking that information from several areas is what produces a complete reading of value.
How does AriaVal help detect opportunities that a traditional appraisal does not show?
AriaVal connects the point-in-time value of an asset with the full structure of the business, where that structure is exposed and which decisions affect it. A traditional appraisal delivers a value at a given date; AriaVal turns it into a strategic reading of value that translates into specific action priorities.