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Valuation

We provide valuation services including business valuation, valuation of intangible assets, valuations for arbitrations, purchase price allocations and valuations for regulatory compliances.

When is valuation required?


Regulatory compliance:

  1. Companies Act
  2. Income-tax Act
  3. Foreign Exchange Management Act (‘FEMA’)
  4. Securities Exchange Board of India (‘SEBI’)
  5. Insolvency and Bankruptcy Code (‘IBC’)
Capital structuring: equity investments, mergers, acquisitions, demergers, slump sale, share capital reduction, buyback
Financial reporting: fair value measurement as required under Indian Accounting Standard (‘Ind‑AS’); purchase price allocation (‘PPA’), employee stock options (‘ESOP’)
Intangible assets valuation: brands, customer contracts, distribution network, know-how, human capital, etc.
Dispute resolution: partner disputes, private equity buyback, etc.

Valuation approach


The value analysis is based on careful consideration of the facts and circumstances of a business situation, after taking into consideration the relevant valuation approaches and methodologies that are internationally accepted.
The commonly used internationally accepted approaches and methodologies for valuing businesses/ assets are as follows:


1.  Market approach: Under this approach, a business is usually valued considering the market price of similar and/ or identical assets for which market price information is available.
  1. Comparable Companies Multiples method (‘CCM’)
  2. Comparable Transaction Multiples method (‘CTM’)
  3. Market Price method (‘MP’)
2.  Income approach: The income approach provides an indication of value by converting future cash flows to a single current value.
  1. Discounted Cash Flow method (‘DCF’)
  2. Relief from Royalty method (‘RRM’)
  3. Multi-Period Excess Earnings method (‘MEEM’)
  4. With and Without method (‘WWM’)
  5. Option Pricing models
3.  Cost/ Asset approach: Cost approach indicates the value by adjusting the asset and liability balances in the balance sheet.
  1. Replacement cost method
  2. Reproduction cost method
  3. Summation/ Net Asset Value method (‘NAV’)

Why us?


Our strength in value analysis stems from our diversified background not only in financial modelling and forecasting, but also in M&A transaction negotiation and structuring as well as having experience in accounting and reporting.

Our associate firms include Chartered Accountants firm (for FEMA and Income-tax valuation compliances); registered valuers (registered with IBBI for Companies Act valuation compliances); and Category I – Merchant Bank (registered with SEBI).

With these associations and experience, we can cater to any valuation requirement, whether required for statutory compliances or for internal management purposes.