Business Valuation

“What’s a Business worth?”

Valuation is often the first point of negotiations and plays a critical role in any transaction. The asset could be either a business or business undertaking, equity shares, preference shares, convertible shares, redeemable shares, intangible or tangible assets.

Business valuation is undertaken to ascertain the Fair Value (fundamental intrinsic value using Income and Asset approach) and Market value (Relative value) in order to understand and then attempt at reducing the gap between intrinsic and market value for value creation of companies before undertaking any corporate actions be it M&A, fund raising, ESOP, dispute resolution etc.

Our team understands that Business Valuation is beyond the numbers.

We invest our time working to understand the business dynamics of company and its business segments (including its past history), financial model with underlying assumptions, its key value drivers, Industry and peer trends, financial analysis and forecast review etc. to derive the fair value. We draw on our extensive experience and apply suitable valuation methodologies after adequate analysis and following our proprietary processes. We combine this with our deep sector knowledge and benchmarking analysis to offer value-added advice to our clients by applying Income, Asset and Market approaches.

 We can help you in:

• Independent assessment of any Business / Assets to determine the right price to pay or accept for a business or Assets or against settlement of Liabilities
• Valuations of closely held companies, businesses, shareholding, brands, technology, contracts, know-how and other intangible assets
• Valuations of Joint Ventures
• Valuations for litigation or arbitration in business valuation disputes
• Valuation of minority shareholders for corporate governance or regulatory purposes
• Valuation opinions for unquoted debt instruments in accordance with FIMMDA guidelines
• Complex valuations including Preferred Stock valuation using Back Solve Option Pricing model
• Valuation of Financial Instruments including Optionally Convertible Debentures (OCD), Compulsorily Convertible Debentures (CCD) etc.
• Valuation of Derivatives using Black Scholes, Binomial and Monte Carlo Option Pricing models
• Valuations for regulatory purposes including the Companies Act, Income Tax Act, FEMA, SEBI Laws, Insolvency Code etc.
• Valuations for financial reporting purposes under IND AS (Purchase Price Allocation, Fair Value under IND AS 113, Impairment Assessment under IND AS 36, Financial Instruments under IND AS 109, Ind AS 32 and Ind AS 107 etc.)
• Performing Scenario Analysis and Sensitivity simulation.