- FundRaising Valuation
- Business Valuation
- ESOP Valuation
- Deal Advisory and Investment Documentation
- Fairness Opinion
- RBI Valuation
- Income Tax Valuation
- SEBI Valuation
- And More
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Valuation is a process of finding the accurate market value of a business, with the help of a valuation consultant to analyse various aspects like growth rate, future prospective, and tangible and intangible assets value. Valuation not only analyses the value of the company and its assets but is also used to ascertain the value of shares and different securities. Valuation consultants use various valuation methods that determine the most exact value.
Valuation consultants use various valuation methods that determine the most exact value. Valuation is performed not just for analysing the market value of a business but also important to perform for planning exit strategies, during litigation for funding and for buying and selling a business.
Who are Valuation Advisors?
A valuation advisor refers to a firm of valuation advisors whose services are engaged by a business or company to conduct a business valuation. A valuation advisor is a business valuation specialist or a third-party advisor that is employed by a business with the sole objective of evaluating the business’ market value. A valuation specialist or advisor will use various valuation methods which will be used to ascertain the value of the business or the value of an asset of interest or shares and stock. After conducting thorough research, the advisor prepares a business valuation report which will be used in case of litigation, buyout, selling or buying of a business, etc.
Different Types of Valuation Methods
Asset valuation simply refers to the process of finding the correct and accurate value of the company’s true assets. Such as stocks, brands, equipment, goodwill, building and many more. This valuation method is opted as a part of a huge business valuation process and also before you sell or buy any asset. An asset valuation also helps you to identically calculate the net worth of your business by adding current asset value and less liabilities value.
A market valuation method is also known as Market comparison approach method. This method considers the market price of comparable assets while also determining the appraisal value of an asset and business ownership interest. This method is ideal when a business usually has similar concerns like Industry, revenue, growth, influence and market potential. Market based valuation method works great with real estate businesses and publicly traded companies.
Discounted Cash Flow Valuation Method estimates the current value of an investment in a business in account of future cash flows. DCF is used to determine the calculated investment that is required, in order to get a previously determined return. This DCF method is actually based on the concept of time value of money which actually means that the current money of an individual is far more than the same in future.
Especia’s valuation services boast of a wide offering which includes
DCF valuation stands for Discounted Cash Flow valuation, which is a method used to estimate the value of an investment based on its expected future cash flows. The method involves projecting future cash flows of an investment, discounting them to their present value using a required rate of return or cost of capital, and arriving at the current intrinsic value of the investment. This valuation method is commonly used in corporate finance and investment analysis.
A registered valuer is a professional who is registered with the government to provide valuation services for various types of assets such as real estate, businesses, intellectual property, machinery, and other types of assets. They provide independent and unbiased opinions on the value of assets and help in ensuring transparency and accuracy in transactions involving the sale, purchase, or transfer of assets. The registration of valuers is governed by the Insolvency and Bankruptcy Board of India (IBBI) and other relevant regulatory bodies.
SEBI valuation refers to the valuation of securities or assets by market intermediaries to comply with the guidelines set by the Securities and Exchange Board of India (SEBI), the regulatory body for securities markets in India. This valuation is done to ensure transparency, fairness, and accuracy in the pricing of securities, and to prevent fraudulent practices in the securities market.
A Fairness Opinion is a professional evaluation conducted by an independent investment bank or valuation firm to provide an unbiased assessment of whether a transaction price is fair from a financial point of view. It helps shareholders and other stakeholders make informed decisions by offering an expert opinion on the financial fairness of the transaction.
RBI Valuation refers to the process of determining the fair value of assets and liabilities of banks or financial institutions, which is regulated by the Reserve Bank of India (RBI). It is important for financial reporting, mergers and acquisitions, and regulatory compliance.
Income Tax Valuation is the process of estimating the fair market value of an asset or property, which is used for income tax purposes such as capital gains tax, wealth tax, or gift tax. It is important to have an accurate income tax valuation to avoid any legal issues and ensure compliance with tax regulations.
ESOP valuation refers to the process of determining the fair market value of a company's shares that are issued as employee stock options (ESOPs). It helps to ensure that the employees receive fair compensation for their contributions and that the company can attract and retain top talent.
Business valuation is the process of determining the economic value of a business or company. It is commonly used for mergers and acquisitions, initial public offerings, and other financial transactions.
Deal advisory and investment documentation refer to the process of advising and assisting clients in their investment decisions, as well as preparing and reviewing the necessary legal documents for investment transactions. This includes conducting due diligence, providing financial analysis, structuring deals, and negotiating agreements to ensure that clients receive the best possible investment outcomes.
Especia’s valuation services
Equity Valuation refers to the process of determining the fair market value of a company's common stock by analyzing various financial and market-related factors. This method helps investors and analysts to estimate the true worth of a company's equity and make informed investment decisions.
Sweat Equity is a term used to describe a type of compensation given to employees or founders of a company in the form of equity shares. This is usually given in exchange for the employees' hard work, effort, or expertise.
IBC stands for the Insolvency and Bankruptcy Code in India, which is a comprehensive law aimed at streamlining and expediting the insolvency and bankruptcy process for individuals and businesses. IBC valuation refers to the process of valuing the assets of a company undergoing insolvency or bankruptcy, which is necessary for determining the distribution of funds to creditors and stakeholders. The valuation is carried out by a registered valuer appointed by the insolvency resolution professional (IRP) or the resolution professional (RP).
Brand valuation is the process of estimating the economic value of a brand, which involves analyzing and quantifying the various aspects of a brand such as its market share, brand recognition, brand loyalty, and reputation, among others. The objective of brand valuation is to determine the financial value of a brand, which can be useful in various business scenarios, including mergers and acquisitions, financial reporting, and licensing.
Startup valuation refers to the process of determining the current and potential future value of a startup company, typically for the purpose of fundraising or acquisition. It involves analyzing various factors such as the company's business model, market opportunity, revenue potential, growth prospects, and more. Startups often rely on valuation to attract investors and secure funding to grow their business.
Ind AS valuation refers to the process of valuing a company's assets and liabilities as per the Indian Accounting Standards (Ind AS) guidelines. This valuation is important for financial reporting and compliance purposes and helps companies to accurately represent their financial position.
Intangible valuation is the process of determining the fair value of intangible assets such as patents, trademarks, copyrights, brand names, customer lists, and other non-physical assets. This valuation helps in assessing the value of a business's intangible assets for various purposes such as financial reporting, mergers and acquisitions, licensing, and taxation.
Convertible Instrument valuation is the process of determining the value of a security that can be converted into another form of security, such as convertible bonds, convertible preferred stock, or convertible notes. This valuation takes into account the option to convert the security, as well as other relevant factors such as interest rates, volatility, and market conditions, to determine the fair value of the security.
Fundraising valuation is a process of estimating the value of a company or asset for the purpose of raising funds from investors. This valuation is used to determine the price at which investors can purchase equity in the company, and it takes into account various factors such as market trends, financial performance, and growth potential.
Process of Business Valuation
Business valuation is a long process which is taken by the professionals for analysing various aspects like growth rate, prospective future earnings, the value of its tangible and intangible assets, and the company’s management.
Business Valuation process includes few steps that are given below:
Step 1: Understanding the Purpose behind Valuation: the purpose behind the valuation of a business is to know the business current value along with the assets and debts. Business valuation is necessary to know how long your business will run in future.
Step-2: Maintaining the Values of the Premises: Values among differences in pricing between a seller and a buyer is based on value that is often stipulated by regulation, laws, contract and reasons for pursuing valuation. Another reason behind the purpose of valuation and basis of determining business values are going into concern. The permanent operation of the business and use of the business assets is assumed, and later operations & sale of the assets are assumed.
Step-3: Collection of Relevant Data: Data like Leases, contracts, customer agreements, financial records, loans and multiple different legal documents. These documents are necessarily required for understanding the company, its history, basics, values, finances, all these things are required to overview the information that is required for maintaining a perfect record.
Step-4: reviewing Business Financial History: before evaluating a company, it is very important for a valuator to have an in-depth knowledge about the company history, Previous ownership and last year's financial performance. In order to do better and to find better financial opportunities, one should know the business from its roots.
Step-5: Final Determined Value: The final step reaches at a conclusion of the value. This is usually taken forward with a typical valuation report, which consists of all the required information and valuation approach that is used as the assumptions that were made in previous projects.
What is valuation consulting
Valuation of a company is extremely important, and so is consulting for valuation. Business valuation consulting conducted by highly professionals provides the data backed evaluations to draw the actual value or worth of a company's services.
Evaluating a company helps business to depict the definite growth of a company over the time. Valuation consulting for an organisation requires several numerous advantages
When does a company need Valuation?
Company valuation is very important, and so is consulting for valuation. Business valuation consulting conducted by highly professionals provides the data backed evaluations to draw the actual value or worth of a company's services.
Valuation is a process that determines a company’s exact value in terms of assets and investments that are opposed to the cost and current market value. The ultimate reason behind evaluating a company is to receive a strategic plan, capitals, investment security and Merger and Acquisition.
Why Choose Especia for Valuation Services
Our team of experts and highly professional valuation consultants strive to deliver world class effective valuation assistance to all major industries.
Especia understands the importance of valuation for a business and caters to all major industries, big and small. Our core values of professionalism and ethics imbue our work culture as we are passionate and dedicated to representing our clients with utmost professionalism.
At Especia, we are dedicated to assisting businesses in becoming more successful at operating by establishing an efficient regulatory management system, cutting costs, and promoting growth.
But our team also constantly conducts research and prepares case studies on various valuation trends to be on top of the game. Especia’s team of consultants provides valuation services to companies in the Delhi-NCR region and around different parts of India.
Especia’s Valuation Advisory Services
With over 250 valuations completed to close major deals, Especia is India’s leading valuation advisory service. Especia performs elaborate and complex financial and tax reporting valuation tasks for industries big and small.
Especia’s team of qualified and experienced chartered accountants and financial managers provide astute expertise on financing, accounting, and tax-related matters.
By using sophisticated critical valuation methods and tools, Especia’s valuation advisory services provide accurate results for legal and tax compliance, financial reporting, and overall better decision-making.
A SEBI registered merchant banker and a chartered accountant is recruited to carry out the valuation services. Such services have to be internationally accepted by several valuation methods which will be carried out.
The ultimate purpose of valuation is to determine the worth of your company's assets and company, which will be compared with the current and the actual market price.
A basic valuation process usually takes 5 to 10 minimum working days, after the process of valuation is conducted to receive an offer or to have the mortgage to be confirmed.
While conducting a valuation the process includes a valuator who acts like a prospective buyer and they will make an assessment which is the valuation process of the company based on the several standardised factors as well as it will help your company to determine its future.
Conducting a Valuation in a company has several aspects but most important are to determine your company’s future profitability, cash flow, potential risk, objectivity with subjectivity and motivation & determination.
Especia Associates LLP is the best valuation services provider. We have offered more than 250+ successful valuation services to top class brands in India and worldwide.
Yes, valuation really matters to get a justification for paying and selling. More often it is also important for an individual's growth because it will help you to know your company's actual status and position and also alarms you for future financial disasters in advance.
There are several types of methods that are used by valuers while valuing a company but the top most priorities are Market Valuation Method, Income Valuation Method and Cost Valuation Method hence each method has their specific advantages and disadvantages but these methods are more commonly used for company valuation.