BUSINESS VALUATION | VALUATION OF EQUITY SHARES
What is ‘Business Valuation’
The process of determining the economic value of a business or company. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership and divorce proceedings. Often times, owners will turn to professional business valuators for an objective estimate of the business value.
How to Determine What Your Business Is Worth
There are many reasons to have an up-to-date business valuation or valuation of equity shares. For example:
- You may need to sell the business due to retirement, health, divorce, or for family reasons.
- You may need debt or equity financing for expansion or due to cash flow problems. Potential financiers or investors will want to see that the business has sufficient worth.
- You may be adding shareholders (or one or more shareholders may wish a buyout). In this case, share value will need to be determined.
Regardless of the reason, how much your business is worth depends on many factors, from the current state of the economy through your business’s balance sheet. If for example, similar businesses in your area have recently sold, the value of your business will be determined in large part by the selling price of the previous sales.
We at Chartered Accountant India not only advices our client how to handle your business valuation but also assist our client to optimize their business valuation. We provides the following valuation:
- Business or valuation of equity shares, swap ratios, fixed asset valuations (in the context of transactions and restructurings);
- Portfolio valuation for private equity funds;
- Purchase price allocations for the fair value of assets (tangible/intangible) and liabilities that have been acquired consequent to a transaction;
- Valuations of intangible assets (brands, technology, contracts, human resources, etc.) to assist in fund-raising, financial reporting purposes or internal strategic decision making;
- Valuations relating to specific products (ESOPs);
- Valuation for regulatory purposes;
- Valuations for dispute resolution/court/company law board matters;
- Strategy related work, such as development/review of business plans, entry/exist strategies, etc.