Business Valuation

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Description

Business valuation is the first point when it comes to any negotiation while entering into an M&A transaction. Being valuation involves technical and industry knowledge; it is very subjective and varies as per the judgement of the valuer.

We understand the valuation beyond numbers and do the valuation challenging the assumptions made while arriving at the valuation. One has to factor in the marketability of the assets, controlling premium and discount rate while arriving at the value.

We can help you in

  • Independent assessment of any Business / Assets to determine the right price to pay
  • Assessment to accept value 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
  • Providing sensitivity analysis

 

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

List of Basic Documents required :

  1. A brief history of business
  2. Historical financial statements – preferably quarterly for last 3 years
  3. Product Information (e.g., sales breakdown by major product line, if available)
  4. Marketing Information (i.e., Customer segment, Marketing approach)
  5. Samples of Promotional Literature
  6. Employee Data (e.g., the total number of employees, list of key employees, wages, benefits, job descriptions, hire date, etc.)  organizational chart,
  7. List of Key/Prominent Customers (Share of Top 10/20 customers in total sales)
  8. List of Primary Competitors (Note: Please describe your competitive advantages, if any.)
  9. Other Information (Please provide us with any materials that you feel will help us and/or prospective buyers gain a better understanding of your company and how it does business.)
  10. 5 years Projection of the business with underlying assumptions

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