Introduction of the service
Ever wonder what your business is WORTH ???
We believe that every business whether small or big in the world has got VALUE. Only 5% know their worth.
It is important to do valuations regularly for other reasons. One of these reasons is due to tax purposes. As much as you need to make sure that your insurance is up to date, you also need to make sure that you can account for everything within your business. Were you to get audited, you would need to provide as much information as possible. When you get a valuation, you will be provided with the following information:
- Open Market/Fair Value - disposal/acquisition of assets/ asset finance
- Forced Sale Value - auction sale values
- Residual Values - for accounting purposes
- Remaining Lives - for accounting / depreciation purposes
- Depreciated Replacement Value - for accounting and balance sheet purposes
- Existing Use Value - transfer of assets in a going concern business.
Amazingly, 75% of the world’s 200 million small businesses don’t know what they’re worth. So why do organization lack and fail to pursue this critical knowledge? Well, for one thing, it was hardly important.That’s hardly a no-brainer for most owners.
Features of Valuation Services
- Comprehensive valuation reports
- Aid in avoidance of buy-sell disputes
- Enhance the performance of the business
- Obtain the best combination of price and terms in the market
- Evaluate the impact of the business on the balance-sheet
- Determine the returns of the business
Do I actually need to get one if I’m not planning to sell anytime soon ? I come across this common question several times.
- Business valuation is used to set the fair market value of the shares of a business, in other words to know how much the business is worth.
- The analysis is useful in various situations, such as a transaction - purchase or sale of a business, tax reorganization, and integration of a new shareholder or in the context of litigation.
- When comes the time to have their business valued, the owners’ biggest concern is to maximize the value of it.
- Seeking an expert in business valuation provides not only an objective and independent value, but also guarantees a suitable transaction in terms of taxation while making sure that no money is left on the table.
Beyond a simple look at the balance sheet and what capital you have in your company, business valuation firms look at a number of different factors that affect the actual worth of your company.
- They consider how long your company has been in operation
- How many people you have working in your operation
- How many and what type of customers
- How tightly the customers are tied to the current owner and the condition and quantity of your inventory, equipment, buildings and supplies.
All these factors will tie in to how successful the business may be for a new owner and are a vital part of business appraisals.
The above measures are calculated using objective measures that look at all aspects of a business such as:
- Analysis of capital structure
- Earnings prospects
- Market value of assets
- Analysis of company management
Common Business Valuation Methods
Asset-based approaches
Basically these business valuation methods total up all the investments in the business. Asset-based business valuations can be done on a going concern or on a liquidation basis. A going concern asset-based approach lists the business's net balance sheet value of its assets and subtracts the value of its liabilities.
Income Approach
The income based method of valuations are based on the premise that the current value of any business is a function of the future value that an investor can expect to receive from purchasing all or part of the business.
Market Approach
In this method, value is determined by comparing the subject, company or assets with its peers or Transactions happening in the same industry and preferably of the same size and region. This is also known as relative valuation method.
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Raising money for your startup is never fun. It takes time, distracts you from developing your product, is fraught with emotional ups & downs, and doesn’t have a guaranteed outcome.
The value of a company is important because it is the basis for determining the "cost" of the new capital when seeking equity additions to the capital structure.
Generally, a valuation considers 4 questions:
- How much is the company worth today ?
- How much could it be worth in the future ?
- How long will it take to create the future value ?
- What is the likelihood of achieving success ?
- The charges of business valuation would vary depending what is included during the valuation process.
- Focus on your business when you have a dependable local firm managing your back office
- The valuation of business is a complex exercise involving a lot of different factors. For small businesses, it is imperative that they consider every possibility before opting for a full company valuation and to assess the goals of getting the business valued, whether it involves selling it, or valuation for potential investors or acquisitions.
- Usually the start price is INR 10,000- to INR2,00,000 depending on size and complexity of your business information.
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