Business Valuation
Why Business Valuation Important?
- Mergers and Acquisitions
- Investment Decisions
- Fundraising and Financing
- Strategic Planning
- Exit Strategy
- Financial Reporting
- Litigation and Disputes
- Risk Assessment
- Improving Performance
- Tax Planning
- Regulatory Compliance
Business Valuation – Trends & Challenges
Emerging trends
The field of business valuation in India is witnessing some exciting trends such as
- Growing importance of intangible assets,
- Rise of start-up valuations,
- Adoption of technology driven valuation methods, and
- Impact of global market dynamics on valuations.
Challenges
Business valuation in India comes with its fair share of challenges. These include
- Lack of standardized methodologies,
- Subjectivity in valuation,
- Information gaps, and
- Changing regulatory environment.
Business Valuation Approaches
INCOME APPROACH
The Income Approach provides an indication of value by converting future cash flow to single current value.
Under the Income Approach, the value of an asset is determined by reference to the value of income, cash flow or cost savings generated by the asset.
COST APPROACH
The Cost Approach provides an indication of value using the economic principle that a buyer will pay no more for an asset than the cost to obtain an asset of equal utility, whether by purchase or by construction, unless undue time, inconvenience, risk or other factors are involved.
The approach provides an indication of value by calculating the current replacement or reproduction cost of an asset and making deductions for physical deterioration and all other relevant forms of obsolescence.
MARKET APPROACH
The Market Approach provides an indication of value by comparing the asset with identical or comparable (that is similar) assets for which price information is available.
Business Valuation – Trends & Challenges
Business Valuation methods are
Discounted cash flow (DCF) analysis
Comparable company analysis
Precedent transactions analysis
- This are the essential methods for determining the worth of a business. These techniques consider factors:
- Growth prospects
- Market conditions
- Industry trends
- to estimate the fair value of a company. By understanding these valuation methods, which helps to make informed investment decisions and negotiate favourable deals.
Evolution In Business Valuation
Evolution from simple rule-of-thumb methods to sophisticated, data-driven approaches.
Advanced technologies like AI and ML enhancing accuracy and efficiency.
Real-time data integration for dynamic valuation models.
Inclusion of ESG factors and intangible assets in valuations.
Scenario analysis and stress testing for risk assessment.
Use of alternative data sources for additional insights.
Standardization and transparency in valuation methodologies.
Collaborative approach involving stakeholders from various fields.
Growing importance of intangible assets in valuation.
Consistent and reliable valuation standards across jurisdictions.
Increased demand for sophisticated valuation methods in private equity and venture capital.
Reasons for Increasing Trends In Business Valuation
- Increased Use of Technology
- Focus on Intangible Assets
- Shift Towards Real-Time Valuations
- Rise of Private Equity Valuations
- Cross-Border Transactions
- Alternative Investment Valuations
- Sustainability and ESG Factors
- Post-Pandemic Impact
- Regulatory Changes
We provide following services
- Business Valuations
- Intangible Assets Valuation
- IFRS Valuations
- Options Valuations
- Valuation for Foreign Investments
- Valuation for Tax Compliances
- Start-up Valuations
- Tangible Asset Valuations
- Convertible Instruments Valuations
- Valuations under Dispute Resolutions
- Transaction Support - Due Diligence, Tax, Legal Support
- Corporate Valuations for Mergers & Acquisitions
Industries We Serv
EV, Automobile ancillaries & vehicle dealers
Real Estate & Infra
EV, Automobile ancillaries & vehicle dealers
Financial Services
Manufacturing companies
Aartificial Intelligence, Robotics Co, Crypto
GOLD
Healthcare industries
Aerospace & Defense
Hospitality & Catering Companies
Engineering
Bio-pharma Companies
OUR SERVICES TO INVESTORS
OUR SERVICES TO INVESTORS
Suitability of target with respect to Investors’ philosophy
Initial scrutiny of business plan
Scrutiny of investment proposals
Financial analysis
Valuation Exercise – Including peer comparable and Justified Business Financial Projections
Deal structuring and term sheet finalization
Financial and tax, legal due diligence support
Final legal documentation, including SHA drafting etc.
Deal closure support
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