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Valuation Services

Valuation Services

Business Valuation and Equity Valuation

Assessing the intrinsic fair value of any asset or business has always been challenging but has never been this difficult as it is in the current environment. The advancement of technology and other geo-political factors are disrupting time and tested business models thereby making it difficult to arrive at a fair value using static assumptions. Though valuation services is an exercise specific to a particular time period, it is important for an organization or an entrepreneur to keep assessing it at regular intervals given such rapid changes in factors or assumptions surrounding the valuation. In case of any mergers & acquisitions transaction, assessing the fair value is of paramount importance to ensure quicker payback and also provide transparency to stakeholders. In case of a leveraged buy-out, a higher valuation can lead to higher debt in the company and inturn may bring stress if the same is not serviced properly due to deteriorating market or business conditions.

To arrive at a fair, objective and realistic valuation, strong forecasting skills with logical assumptions, key industry & company drivers and the most appropriate valuation technique is a must. We have mastered this art over years and have developed strong capabilities to forecast financial data using complex financial modelling. We believe in arriving at a valuation range using a combination of 2 to 3 valuation methodologies rather than providing a point blank number.

The most common and well-accepted technique is the Discounted Cash Flow (DCF) Method. Valuation using DCF is a summation of all the discounted future cash flows and the Terminal Value (TV). Terminal Value is arrived at using either the Perpetual Growth Method or Multiples Method.

We have delivered Valuation Services for various purposes including but not limited to:

  • Business Valuation
  • Equity Valuation
  • Portfolio Valuation (for private equity funds)
  • Asset Valuation
  • Brand Valuation
  • ESOP Valuation

Our Approach

Valuing Business or Asset

  • Cost Approach
  • Cost to Build
  • Replacement Cost
  • Market Approach (Relative Value)
  • Public Company Comparables
  • Precedent Transactions
  • Discounted Cash Flow (intrinsic value approach)
  • Forcast Future Cash Flow

What Our Deliverables Cover

Our deliverables consist of :

  • Detailed Valuation Report (pdf)
  • Financial Model (excel based)
    • Detailed Historical Financial Performance
    • Forecasting Assumptions
    • Detailed Forecasted Financial Statements
    • Valuation Sheet with various assumptions

Our valuation reports have stood the test of scrutiny at various levels and have been well-accepted by everyone. Our valuation report normally covers

  • Industry / Sector Overview
  • Company and Business Overview
  • Financial Overview including forecasting
  • Valuation Summary (with Football Field)
  • Valuation Assumptions
  • Valuation Methodology
  • Risk Factors

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