Choose Valuation India for the Best Business Valuation Services in IndiaBusiness valuation constitutes an essential element, regardless of whether you are a startup or a global enterprise. It enables you to know the exact value of your business and further helps you devise investor and business strategies. However, business valuation isn’t a straightforward task. It requires deep-diving into the business, assessing its figures, and a range of other external factors to derive an accurate figure. It is here that business valuation experts of Valuation India come into the picture! At Valuation India, we are a team of highly experienced business valuation consultants that provide the best business valuation services in India. We specialize in a range of business valuation methods and use the most appropriate one to ensure we compute the correct value of the business of our clients. The methods we use include,
To-date we have served a lot of startups with business valuation services. Besides, we also offer private company valuation services and the valuation of shares of private limited company. All these factors make us one of the best business valuation firms in India. Here are some reasons that make us the best for company valuation services in India and business valuation in India.
Why Choose us for Company Valuation India?
We give you several reasons to choose us your business valuation services partner in India.
If you are looking forward to the best valuation services in Mumbai, Bangalore, Pune, Delhi, Hyderabad, or any other city in India. Partner with Valuation India and get the best company valuation services under one roof. For more details, connect with us at +918484048948.
Business Valuation – Trends & Challenges
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.
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 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.
- 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.
- 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.
Also termed company valuation, business valuation involves determining the economic worth or value of a particular business. The process comprises analyzing various areas of the business to determine its value. Company valuation helps determine the business’s fair value for reasons, including taxation, investor pitches, sale value, establishing partner ownership, etc. The process is complex and therefore requires companies to have professional valuation experts by their side to determine the right value.
A business valuation helps you compute vital numbers associated with a particular business. But its significance goes beyond numbers. It helps provide business owners insights concerning their business’s internal functioning, facts, market standing, etc. Some benefits of business valuation include the following.
- Understand a company’s resale value
- Gain a better knowledge of a business’s assets
- Negotiate better during mergers and acquisitions
- Compute a company’s true value
- Get access to more investors
- Plan ESOP
- Ensure proper succession planning
Professional business valuation experts leverage various methods to value a particular business. Some of them include the following.
- Book Value Method
- Discounted Cash Flow Method
- Enterprise Value Method
- Market Capitalization Method
- EBITDA Method
- ROI-Based Valuation Method
- Asset-Based Valuation Method
The steps involved in business valuation include,
- Choosing the appropriate business valuation experts
- Determining the valuation objectives
- Determining the basis of business valuation
- Understanding the premise of value
- Collecting the required data
- Assessing the business’s historical performance
- Determining the business’s future outlook
- Figuring out the correct valuation approach
- Applying applicable discounts
- Calculating and concluding a business’s value
Valuation experts consider various factors while valuing a business. It helps them achieve a comprehensive and more reliable figure. The top factors to consider include the below.
- EBITDA (value based on earnings before interest, taxes, depreciation, and amortization functions)
- The company’s size
- Growth potential and prospects
- Revenue trends
- Historical earnings
- The business’s location
- Reputation and goodwill
- The business’s competitive advantages
- The company’s staff and management team
Business valuation is a complex process involving the consideration of various factors. Hence it takes around 15-20 days for the entire process to be complete and for the professionals to come up with a comprehensive and valid business value.