Corporate tax

Business Valuation Consultant

The competitive global business environment has significantly increased the need for business valuation. This can be for various purposes, including mergers and acquisitions, financial reporting, restructuring, tax planning, etc.

We assist organisations in valuing their enterprise and its related assets through our understanding of the requirements of the stakeholders involved. Our experts possess extensive financial, valuation, and industry expertise that helps companies identify, measure, and realise their value.

We provide high-quality business valuation services for the diverse transaction and reporting needs of startups, growth stage and well-established companies, Private Equity and Venture Capitalists, Investment Bankers, and Other entities.

Why is Business Valuation Important for your Enterprise?

Business valuation services offer numerous benefits to stakeholders.

Informed Decision Making

Business valuation gives insight into the financial health and potential growth prospects of a business. Accurate valuation enables stakeholders to make sound decisions regarding M&A, divestitures, and investments.

Safeguarding Transactions

Business Valuation is essential for negotiating fair purchase prices in mergers and acquisitions.

Tax Compliance

Business Valuation is important for tax compliance purposes as it helps minimise tax liabilities and ensures compliance with regulations.

Litigation Support

Business Valuation consultants provide expert witness testimony and litigation support in legal proceedings such as shareholder disputes and breach of contract cases. This helps resolve conflicts and determine equitable resolutions.

Financial Reporting

Business Valuation allows companies to periodically assess the fair value of certain assets and liabilities, including goodwill and intangible assets.

A Complete 360-Degree Valuation

We offer high-standard business valuation services for various types of transactions that help you make strategic business decisions. Our range of valuation services includes the following:

Valuation for M&As

We advise clients on the fair value of businesses and help to analyse targets for mergers & acquisitions. We also help clients in various strategic decision-making, including divestment, business restructuring, computation of swap ratio for mergers, etc.

Valuation for Regulatory Compliance

We assist companies in assessing the fair value of their business for various regulatory compliances, including the Income Tax Act, Companies Act, 2013, FEMA, IFRS, etc.

ESOP Valuation

We assist clients in determining strike prices for employee stock option plans and also carry out the valuation of options as of the date on which the options were granted or in the subsequent periods for accounting and regulatory purposes.

Intangible Valuation

We help clients in valuing intangible assets like patents, copyrights, trademarks, trade names or brands, research and development assets, customer relationships, etc.

Purchase Price Allocation (PPA)

We assist our clients in purchase price allocations for the fair value of assets (tangible/intangible) and liabilities that have been acquired consequence of a transaction. We also advise clients in understanding accounting impacts pre- and post-deal execution. While carrying out the PPA, we also highlight issues around potential and subsequent goodwill impairment.

Restructuring / Re-organisation

We assist our clients in the restructuring/reorganisation of their group structure by evaluating and analysing their core and non-core assets and valuing the assets.

Impairment Testing

We help clients in reviewing annual goodwill impairment by valuing each reporting unit and quantifying the amount of impairment, if any.

Frequently Asked Questions (FAQs)

Business Valuation is a process and set of procedures used to assess the value of an asset.

The value of your business can be calculated using various business valuation methods (Approach), like income-based approaches, market-based approaches, and asset-based approaches. The selection of the valuation method and business valuation formula varies depending on business requirements.

Some common business valuation methodologies are:

  • Income Approach: This method determines the value of a business based on its ability to generate income in the future. Techniques such as Discounted Cash Flow (DCF) analysis and Capitalisation of Earnings are utilised to estimate the present value of expected future cash flows.
  • Market Approach: The market approach compares the subject company with similar businesses that have been sold recently. This method relies on market multiples such as the price-to-earnings (P/E) ratio or price-to-sales (P/S) ratio to derive the valuation.
  • Asset Approach: The asset approach values a business based on the underlying value of its assets, adjusted for liabilities. This method is particularly useful for asset-rich companies or those with significant tangible assets.
  • Hybrid Approaches: In some cases, a combination of different valuation methods is used to achieve a more comprehensive assessment. For instance, the Weighted Average Cost of Capital (WACC) approach combines elements of the income and asset approaches.

For an accurate business valuation report, we consider multiple factors such as financial performance, market conditions, industry trends, and competitive landscape during the business valuation process.

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