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Business Valuation Services

At IndiaBiz, we understand that valuation, or the process of determining the fair market value of a business, is a serious and specialised function. Hence, we offer high quality business valuation service through our team of expert finance and business professionals. Our team has done 100+ business valuations for companies of all sizes including pre-revenue, early revenue, high-growth, and also mature companies.

Get well crafted realistic valuation report and create a professional impression for your proposal.

Why Valuation?

Unrealistic valuation is one of the major reasons why good deals fall out

Get what you deserve in a transaction by knowing the real worth of your business

Quote realistic valuation for higher chances of gaining buyer/investor confidence


ABOUT BUSINESS VALUATION

When do you need a business valuation report?

You may require a professional valuation report when raising funds for business growth or when planning a profitable business exit, and also while issuing shares/stock option to employees or other stakeholders.

What types of business valuation services do we offer?

There are various types of business valuation services such as just an estimate of fair-market value of a running business, also a professional report which can be shared with investors, merchant-banker certified report for compliance purpose and many more. Our expert valuation team can help you in all such scenarios.

What factors do we consider while doing business valuation?

We look at company’s performances in the past, present and assumptions of future growth prospect. We also look at competition, macro-factors which can affect the business in short to medium term. Business liabilities, assets tangible and non-tangible are also looked at. In short we try to get the story behinds business numbers while valuing a company.

How it works?

  • Perusal of documents
  • Meeting with the valuation team
  • Valuation team shares the draft report
  • Review with the valuation team
  • Final report delivery

Testimonials

Frequently Asked Questions

What documents are required to submit for valuation?

  • Audited financial statements
    Last 5 financial years Balance sheet, Profit & Loss Account, Cash flow Statement – with schedules and accounting notes.
  • Auditors report for the last 5 financial years
  • Management discussion and analysis if available for last 5 years
  • Unaudited quarterly financial statements up to the month of valuation Balance Sheet, and Profit & Loss Account. For example, if the valuation exercise is being performed in the month of February, we shall need unaudited quarterly financial statement for first (April to June), Second (July to September), and third (October to December) quarters
  • Shareholding pattern/partnership stake (if Private Ltd Company / Partnership / LLP)
  • List of top ten customers with their contribution to sales (in percentage)

How long will it take to obtain a detailed valuation report for my business?

The business valuation report may take anywhere between 2 to 3 weeks from the time you have submitted all the requested documents and information.

What are the steps of obtaining a detailed valuation report for my business?

  • Choose our Business Valuation Services
  • Share all the necessary information and documents
  • Our team researches your business, industry and comparable businesses
  • Our valuation expert, CA and team members revert to you with queries
  • Receive your complete valuation report within 3 weeks of answering all the queries

What are the Scope and Limitations of Valuation Report provided by IndiaBizForSale.com?

In preparing our valuation we have relied upon such information as has been provided by the client, information otherwise should be verified. In the event of significant variation from the information initially given to us, our valuation could require adjustment. We cannot express an opinion about, or advise upon, the condition of uninspected parts and the Valuation Report should not be taken as making any implied representation or statement about such parts.

For what purposes can I use the detailed valuation report provided by IndiaBizForSale.com?

Our valuation is provided only for the purpose agreed with the instructing client and will be for the sole use of the client. As such, it is confidential to the client and his professional advisers. We accept responsibility to the client alone that the report has been prepared with the skill, care and diligence.
Neither the whole nor any part of the Valuation Report may be included in any published document, circular or statement nor published in any way without our written approval of the form and context in which it may appear. We undertake all services only on the basis of these terms which shall apply to the exclusion of any other terms and conditions which the client may seek to impose.

How accurate is the Valuation Report provided by IndiaBizForsale.com?

The Valuation report derived will be based on the information provided the company and gathered by means of inquiry. The computation and analysis intends to provide reasonable grounds for valuing the business as a going concern. The reader is expected to exercise professional judgement when using the report to initiate any business transaction or relationship with the company.

How precise will be the valuation?

Valuation will determine the expected price that a buyer may potentially pay for your business. However, the real price will be determined when the business transaction is closed and value that the buyer has paid for the business.

What if the transaction could not take place at the estimated value?

Valuation figure determined is to provide you with a broad estimate based on many variables. It does not confirm the price your business will be sold at, however, gives best estimated value of your business.

Will the value of my business be shown to all the visitors to the website?

No. Your business valuation is for your reference only. Only, if you want us to share the value of your business on your listing, we will do so.

What is the validity period of valuation?

Valuation is generally valid only for the valuation date indicated on the report and for the purpose stated. The businesses are recommended to conduct valuation every 6 months.

Does the valuation consider future prospect of my business?

It is important to consider future prospect of the business from both Sellers as well as Buyer’s perspective. Seller is interested to show the business potential in terms of growth prospects and as a result wants a higher business valuation. Whereas, the Buyer wants to evaluate the risks and opportunities going forward.

Does the valuation include intangible assets?

Intangible assets like goodwill, brand, trademarks and copyrights, intellectual property, royalty, software rights, etc. plays an important role in valuing a business. These are generally valued at acquisition costs.

Does the valuation reflect off-balance sheet liabilities?

If the business has significant amount of off-balance sheet liabilities, such as derivatives transactions, long-term lease agreements, the valuation should reflect these off-balance sheet liabilities.

Will the valuation consider the potential to expand capacity or similar business flexibilities?

Yes, the valuation shall consider the potential to expand capacity or any such business or operational flexibilities that is offered by a particular business.

How do you value a running business and how does it differ to a dormant business?

A running business shall be valued as a going concern. The valuation here shall be estimated based on its current cash flow, growth of cash flow, value of assets and liabilities and its capital investment. A dormant business on the other hand generally does not have cash flow or the cash flow does not originate from business operations, for example rent of property. In such cases the valuation of the firm shall be estimated considering market value of its fixed asset and adjusting that for any liability.

What if all documents are not available for the valuation of a business?

To conduct the valuation of the business, we will require all the necessary documents listed in this section.

I know what is my business worth, why do I need a professional valuation?

The business valuation can help you improve the way you manage your business let alone to determine the Business worth. A business valuation can help you achieve the following :

  • Determine asking price of your company
  • strengthen your credibility
  • track your goals
  • investment requirements, and many more

How to value business when brand is popular in comparison to sale and is decades old enjoying repute?

Valuing goodwill or a brand developed in-house (i.e. by incurring marketing expenditure, ensuring quality and meeting consumer expectations and perceptions) is always a challenge.
The brand in order to have implications for valuation of a firm/business shall pass through two tests:

  • the brand must result into higher sales for the company compared to its competitors
  • per unit price of the product that the company realises must be higher than similar products offered by competition.
If an in-house developed brand passes these two tests, a brand would have significant impact on the value of the firm.