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.