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What is Valuation?
Valuation is the process to determine the financial worth
of a company. Business valuation is partly subjective, since
it is based on a set of assumptions, circumstances, and disclosures
unique to each company. It also is partly objective, where
the use of financial review, analysis and financial models
used to estimate value is concerned. Valuation is a concept
applied by experts to determine the fair market value of an
owner's interest in the business. In short, valuation is the
process of estimating the market value of a firm.
Who needs Valuation and Why?
Many entrepreneurs and business owners value their Company
due to various reasons some of which are mentioned below:
- Raising Of Capital
- Protection Of Business
- As A Part Of Dispute Settlement
- Acquiring Or Merging With Another Company
- Sale Of Business
- Employee Stock Option Plan (ESOP)
- Conducting A Major Strategic Planning Initiative
- Breaking Up Or Establishing A Partnership
Benefits of Valuation
" A well-designed valuation can help prospective business
buyers and sellers by creating a baseline for a reasonable
asking price.
" A valuation can also serve as a due-diligence consideration
in a merger or acquisition.
" A business valuation process can improve performance
by identifying a company's strengths and weaknesses.
" Valuation can define "exit clauses" in partnership
agreements, protecting the financial interests of individuals
and the company.
" Valuation helps in establishing a fair market and investment
value of the company, thereby, maximizing the returns from
stake sale.
Why a third-party valuation is beneficial?
" A third party valuation is an unbiased view and hence
lends authenticity to the value of business arrived at the
time of sale of business or for any other purpose.
" Being experts in valuation, consultants or advisors
involved in valuing a company can help the company secure
investments from the market.
Looking for an advisor for valuation?
A decade of consulting experience has given us extensive
understanding of various industries. Our expertise straddles
across fields like Media, Entertainment & Lifestyle, ITeS
/ BPO, Logistics, Machine Tools, Construction Equipments,
Retail, Hospitality & Tourism, Automobile & Auto component,
Life sciences (Biotechnology, Health care, Pharma) helping
us know each industry with intrinsic detail.
Also, our exposure to various M&A, Private Equity and
Joint venture Deals provides us with huge experience in the
field of valuation
We can provide you a detailed valuation report by analyzing
your Operating Industry, Business and Purpose of Valuation.
Also we can assist you improve valuation of your business.
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