Company Valuation

COMPANY VALUATION

Use Our Experience for Your Incredible Projects

Company Valuation is the general process of determining a company’s current worth, economic or fair value.Businesses usually seek the help of professional evaluators or M&A analysts to estimate the most reasonable value for their business. 
The valuation process is holistic in nature and includes an analysis of the company's management, its capital structure, its future earnings prospects or the market value of its assets.

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.

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 & ACQUISITIONS

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 DISPUTES, COMPLIANCE OR 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:

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.

Market Approach

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

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 build a comprehensive valuation model for your company in Excel using 3-4 appropriate techniques and arrive as a responsible 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:
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OUR PROCESS

We have tried to keep our process as simple, smooth and collaborative as possible.
1

VALUATION REQUEST RECEIVED

The process starts when you fill one of our contact forms or email/call us with your requirements. At this stage, all we ask for is basic details like your name, email address, company name, industry, service (company valuation) and a brief description of your requirement along with any attachments you might want to send. You then directly book an initial consultation with us here.
2

INITIAL CONSULTATION

The purpose of this call is to understand your current situation, story, background and requirements. The agenda is very high-level, and the primary objective is to ascertain project scope, timeline, milestones and budget.
3

FOLLOW-UP/INFORMATION GATHERING

Post initial-consultation, we move on to gathering relevant information from you about the business. This can be in the form of a questionnaire or interview(s) with relevant stakeholders - whichever is more appropriate. We will also need to request for confidential financial documents.
4

SUBMISSION OF FIRST DRAFT

Based on our initial discussions around timelines and milestones, we deliver a first draft of the valuation model and report explained with underlying assumptions. We walk you through the model and discuss feedback, if any.
5

FINAL VALUATION MODEL & REPORT

Post revisions and iterations based on our discussions with you and your team, we deliver the final product to you which will be built in MS Excel alongside a full-blown report in MS Word. We also include an ‘Instructions’ page with an explanation on how to navigate and use the model.

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FAQ

How much time does it take to complete a valuation request?
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.
How much does a full valuation report with model cost?
Our pricing mechanism isn’t one-size-fits-all and we review each project’s scope individually to quote a price. Some models, like the startup valuation model and report will cost differently to a M&A valuation model.
Do you provide a report with the valuation model as well?
We are here to serve our customers and deliver on their requirements. Our process is very agile and can accommodate any requirements you may have. We provide a comprehensive report with our models with detailed commentary, recommendation and conclusion.
Do you provide ongoing financial advisory services?
Most of the clients we work with have been with us for years. We believe in building long-lasting partnerships and that’s one of the biggest motivations for us to give our best to each client. We can come onboard as your go-to advisors and provide real-world modeling solutions
How many valuation methods do you use to value a company?
We use a combination of different methods to arrive at a reasonable range of valuation estimates for your project.
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