Business valuation is the first process that is required to initiate any merger or to find the actual worth of a company in general. It provides valuable details of the financial and operational aspects of the company to the creditors. It is a mathematical methodology that focuses on the strategies related to the financial viability of the company. A comprehensive and detailed analysis of a firm is required to find its true market value. When a firm needs to dilute its share I order to raise some capital for the business or to merge it with some bigger firm it needs to undergo a valuation to get its actual worth quantified. Business valuation is very crucial for start-ups and small to medium-sized companies who need to assess their market value in order to raise capital from the investors.
To get the business valuation done, the firms need services from companies or agencies which provide business valuation services. These business valuation firms have a great team of highly-trained professionals who are expert in their domain. There are some great firms which provide business valuation services India. Firms like Dewan P N Chopra & Co., Neeraj Bhagat & Co., Desai Haribhakti, and S N Dhawan & Co. provide excellent services and impart great value to their clients. In this article, we will be discussing about everything that you need to know about business valuation services India.
Purpose of Business Valuation
Business valuation is done for many purposes. Following are some of the reasons firms hire business valuation professionals to assess their market value.
- For selling a product, the brand, or a part of the business itself
- Negotiations and Acquisition
- To calculate the equity interest
- Sending evaluation reports to founders
- Filing for bankruptcies, fusions, and acquisitions
Benefits of Business Valuation
Estimating the Resale Value:
This helps immensely in pitching a new product to the market. This will give the right strategy to assess the prices and the resale value of the brand or the product.
Attracting More Investors
Investors have a prudent approach in their investment activities and they want to know about the cashflow of the company they have invested in. They want to know where their money is being used. A company with a detailed business valuation will attract more number of investors as it assures them of the authenticity of the cashflow of the business.
Familiarity with Balance Sheet
A detailed assessment of the business is crucial. A well audited and evaluated balance sheet provides the right picture of the assets the company possesses. This not only brings more investors, but also helps in getting insurance cover for the business.
Services Offered by Business Valuation Professional
The firms which provide business valuation services India provide a wide range of services under this domain. Some of the services provided by these companies are listed below.
Transaction Advisory
This service includes model testing, DCF, and LBO design. This is a highly skill-based job and also includes coordination analysis for M&A research as well as development of the pitch paper and memorandums of knowledge.
Audit Support
Auditing is encouraged by the valuation industry to add authenticity to the process. It includes the auditing of models, effective platforms pricing, fair value assessments, etc.
Start-up Valuations
This procedure helps start-ups in assessing equities when raising funds. This also mitigates the uncertainty associated with a start-up.
Portfolio Valuations
This service includes assessing valuation of fixed-income assets as well as investment funds. This helps in realizing the true value of portfolios which then can be utilized in managing the associated risk with portfolios.
Conclusion
Hence, business valuation is an important and integral part of assessing the true value of a business and making it quantifiable to the investors. Hiring a good firm to provide business valuation services is essential as professional guidance is required in a task as complicated as this.
