Business Valuation

A business valuation is a general process of determining the economic value of a whole business or company unit. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership, taxation, and others. Owners often turn to professional business evaluators for an objective estimate of the value of the business.

Business Valuation requires a solid grasp of both how value has been created and how it will continue to be created in the future. The foundation of business valuation is the ability to understand how a company cultivates ideas or concepts and deploys its invested capital, aiming to drive returns in excess of its cost of capital. The process of value creation does not follow a single path, but rather many paths that vary by industry and the company's position in its life cycle.

Many have described business valuation as both an art and a science. The scientific and analytical aspect employs a variety of approaches or methods applied not only to the subject of the valuation itself, but also to the development of certain inputs into the measurement. The art of a valuation lies in the ability to apply these tools in an effective manner, utilizing professional judgment. This type of insight is gained over years of experience across the spectrum of company life cycles, industries, jurisdictions, and valuation purposes, and also calls for a deep understanding of regulators' and other stakeholders' requirements and expectations

In today's challenging corporate, regulatory, legal and accounting environment, there is a need for robust and independent valuation services, which are aligned with globally accepted practices. We have valuation consultants with a specialised experience in providing such valuation services to both our global clients and clients in India. Our opinions are based on vast experience and sound professional judgment in valuations of companies and assets.

We provide valuation services in relation to:

Transactions to satisfy regulatory requirements or corporate governance concern

Transactions, which include restructuring and divestments

Independent and objective advice, to determine the right price to pay or accept for a business.

Advice for Joint Ventures / Alliances on equity splits at formation or exit in an independent or advocate role

Valuation opinions for unquoted debt or equity instruments

Financing and strategic management purposes

Investment decision analysis

Financial reporting purposes, which include purchase price allocation, testing for investment/goodwill impairment, ESOP valuation etc.

Litigation, arbitration and dispute resolution

Financial instruments including debt, hybrid, and convertible instruments

Portfolio valuation for venture capital funds, private equity funds and other alternative investment funds.