Business Valuation

Business Valuation is the process of determining the economic value of a company.

Business valuation is a process used to determine what a business is worth. Usually, every business owner considers getting a business valuation at the time of a major acquisition, sale of business, resolving a shareholder dispute or joint venture dispute, but every business needs to have an up to date business valuation on hand at all times. Possible reasons that a business owner or company may need a business valuation:

Set a base value to develop a profitability strategy.
Explore opportunities to sell or merge.
Raise funds effectively.
Add a new owner to the business.
Plan exit strategies for partners or shareholders.
Develop business expansion strategies.
Provide critical input for management decisions.
Value convertible securities like CCD and CCPS.

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Approaches and Methodologies for Business Valuation

There are three fundamental ways to measure what a business is worth:

To conclude what a business is really worth, results of several business valuation methods can be taken into consideration.
Our business valuation experts will co-ordinate with you to understand the business dynamics and its key value drivers. We assist by performing valuation of the business, preparing Information Memorandum/Investor Presentations and supporting in equity or debt syndications.

Valuation of Brands, Intangible Assets and Intellectual Property

The role of brands, intellectual property rights (IPRs) and intangible assets are increasing in setting up the foundation for market dominance and continuing profitability of leading companies. These assets are widely accepted as the key drivers and contributors to the value and growth of businesses. Bankers, Investors and other stakeholders are most keen to the Valuation of Intangible Assets nowadays. Majority bankers and financial institutions are now in the path of funding against reputed brands and strong intangibles. Core Intangibles are being offered as collateral securities. This has led to wide increase in the role of intangibles from the financial side. Moreover, valuation of these intangible assets and valuation of Intellectual Property are required to be monitored on an ongoing basis. We have the professional and technical expertise to help our clients identify and depict the accurate value of their Intangible assets and Brand using approaches which are globally accepted and understood. Patents & Trademarks, Brands, Knowhow & Trade secrets, Computer software, licensing agreements and Customers are some of the important intangible assets. Intangible valuation is required for accounting purposes, mergers and acquisitions, reporting as per applicable financial reporting framework, purchase price allocation, joint-venture negotiations etc.

Valuation of industrial assets, Plant & Machinery

Depending on the specific usefulness, utility or service of plant & machinery to the industry it belongs, valuation methods and value differs. It is very important to consider the contribution of the asset to the goods and services it is set up for. Estimating the worth of the plant and machinery in monetary value and how much it contributes to the revenue generation capacity of the entity is covered as a part of the valuation assignment.
Valuation of Plant & Machinery will be required to be done for Mergers & Acquisitions, Banking (Lending purpose), Financial reporting, Claims & Litigation support, Strategy planning & Management decision making, Disinvestment, IPO purpose, Impairment analysis etc.

Valuation of Real estate

Depending on the specific usefulness, utility or service of plant & machinery to the industry it belongs, valuatiOur independent valuation services allow companies to understand the value of an entity, asset, or liability so they can make informed business and investment decisions. Our mix of services is broadly based and tailored to our client’s specific needs and assist in their assessment of development projects, acquisitions, expansions, refinancing, restructuring and other transactions.n methods and value differs. It is very important to consider the contribution of the asset to the goods and services it is set up for. Estimating the worth of the plant and machinery in monetary value and how much it contributes to the revenue generation capacity of the entity is covered as a part of the valuation assignment.
Valuation of Plant & Machinery will be required to be done for Mergers & Acquisitions, Banking (Lending purpose), Financial reporting, Claims & Litigation support, Strategy planning & Management decision making, Disinvestment, IPO purpose, Impairment analysis etc.

Valuation of ESOP's & Sweat equity

Employee stock option plans and schemes are being widely offered to employees nowadays, based on the concerned fair value and intrinsic value. Appropriate employee compensation expenses and reserves needs to be created for the same. ESOPs need to be valued appropriately for regulatory & tax compliance purposes.
Estimating and arriving at the value of such share based payments is a complex procedure depending on numerous variables and unique terms. Matchvalley assists both public and private organizations by providing tailored valuation models according to the client requirements. Assistance is offered in selecting most appropriate method & other parameters.

Tax, Transfer pricing & Company law matters

Valuations are required before implementing various tax strategies as they are highly scrutinized by regulatory authorities. We have skilled expertise in tax purpose valuations and related consulting.

Our valuation service offerings

Valuation with respect to capital gain tax purposes
Purchase price allocation for slump sale transactions
Tax restructuring valuations
Valuation for cross border transactions involving transfer pricing regulations
Valuations in relation to corporate restructuring as per Companies Act

Fairness opinions

Fairness opinion is an independent objective analysis compiled by qualified analysts or advisers from a financial point of view as to the fairness of the financial terms of a business or corporate restructuring. There are many reasons for fairness opinions, most of which deal with transactions involving publicly listed and closely-held companies.
A fairness opinion provides guidance to the parties involved in a merger, takeover or acquisition. This could include the shareholders of the company being acquired. It is essentially a professional opinion supported by collected data.