Our Company Valuation Expertise

We work closely with clients to understand their needs and to develop bespoke valuation solutions to complex issues. We focus on understanding the business dynamics of the company and identifying the key value drivers of the sector in which it operates.

We have extensive experience in valuing companies and assets across a broad range of industry sectors. We draw on our extensive sector knowledge derived from both consultancy and executive management experience to identify the correct approach to provide insightful, reliable and robust valuation opinions for our clients’ needs.

Our client base comprises FTSE 100 companies, governments, lawyers and regulators as well as individuals and entrepreneurial businesses, and covers a wide range of sectors including Pharmaceutical, Financial Services, Energy & Utilities (including Water, Oil & Gas and Renewables), Healthcare, F&B, Real Estate, Technology, Media and Telecommunications.

What is your company valuation?

A question that every startup entrepreneur struggles to answer. Startup valuation is not as straightforward as a traditional public-company valuation. But it’s very important for you to be able to quantify your business’s worth when approaching equity investors so you can get the best deal possible. We have been working with VCs and PE firms for almost 10 years and can leverage our valuable experience gained while working with them to most accurately evaluate your business’s worth. We use a combination of different techniques to estimate the most reliable and reasonable valuation for your startup.

Do you need a valuation for your business?

People usually mistake valuation to be a process only needed during the sale or merger of a company but valuation has more uses than that. Following are some of the most common use cases.

Mergers & Aquisitions

Valuation modeling is usually performed to value the pre and post merger company in order to evaluate the merger opportunity and ascertain whether the synergy causes an increase in value. Analysts also value the target company in order to make an offer for the purchase based on their valuation estimates among other factors.

Investment Management

Portfolio managers and individual investors that actively manage their portfolios and investments use various valuation techniques to continuously evaluate attractive opportunities.

Startup Valuation

Startups use valuation methods to estimate a value for their company which in turn is used while raising investment for their business from venture capitalists, angel investors and other private investors.

Tax Dispute, Compliance & Planning

The valuation needs of a company from a tax perspective are driven by tax compliance, deferral and minimization. Entities often require independent valuation services to avoid unnecessary tax repercussions

Financial Reporting

Valuation needs from a financial reporting perspective are primarily driven by the Generally Accepted Accounting Principles (GAAP) that the company has adopted (for eg, US GAAP or IFRS). Some of the most frequent valuation engagements performed for financial reporting purposes include fair value measurement and equity-based compensation.

Company Restructuring

In corporate restructurings, an independent valuation of a company is critical for guiding decision making especially when there are multiple stakeholders involved. A special case of the corporate restructuring includes a distressed company valuation.

Company Valuation Methods

While estimating/calculating the valuation of a company, it is important to arrive at a possible number by using more than one approach. This is done to provide confidence and reaffirm the accuracy of the valuation.
There are three approaches to valuation:

1. Income Approach

Converts future cash flows generated over the remaining useful life to a current value, through the application of a discount rate that reflects the time value of money and risk.

2. Market Approach

Compares the business in question to similar businesses in the industry that have available market data.

3. Asset Approach

Values a business as the sum of the values of its individual assets and liabilities.

Each of the above approaches have different valuation techniques within them. Our valuation analysts take more than one approach to valuation and use different techniques within those approaches to give our clients the best valuation estimate or even a range for reference. Our final product is not a mere excel sheet but a detailed report that clearly describes the company’s business model, industry, total market and the approach we followed to arrive at a particular valuation.

Few of the most widely used valuation techniques include

  • Comparable Analysis (“Comps”)
  • Precedent Transactions
  • Discounted Cash Flow Analysis (DCF)
  • Multiples of Earnings Valuation
  • Capitalization of Earnings Valuation
  • Book Value Valuation

What do we offer?

We will build a comprehensive valuation model for your company in Excel using 3-4 appropriate techniques and arrive at a reasonable range for an estimated value of your company. You can also opt to receive a detailed valuation report for a comprehensive account of the underlying assumptions, methodology and rationale adopted to arrive at the said valuation. You can view a sample of the valuation report here.

FAQs

The time taken varies from project to project. Most of the time spent on a project is driven by the groundwork we have to do which includes information gathering from company stakeholders, the complexity of business structure and the quality of financial documents provided. For instance, a simple valuation model for a startup company with one product/service can be delivered as early as 5-7 days.

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