Quick Contact
Need Help?
Please Feel Free To Contact Us. We Will Get Back To You With 1-2 Business Days.
[email protected]
+65 9730 4250
Download
Company White Paper
1.30 MB
Company Media Kit
1.22 MB
Valuation for Buying/Selling Companies
What Is Valuation?
As the name suggests, valuation is the process of finding out the exact value of a company or business. Business valuation can focus on the entire organization, an ownership interest, a certain liability, or an asset. Companies ought to understand the importance of valuation lest they won’t have an idea of the best direction as we advance. It explains why it is crucial in financial markets, including corporate and investor activities.
Valuation has seen businesses make informed and strategic decisions. It is no secret that that’s something that has helped many companies head in the right direction. Company valuation also helps a business determine the drivers that can play a huge role in determining the drivers boosting the business’s success. Once identified, the company will do everything in its power to improve these drivers, thus realizing its optimum business value.
We offer specialized and quality buy and sell business valuation and consultancy services delivered within the set timelines. Our customized buy & sell valuation services are provided by experts who are regularly updated with the latest events on the global market. Our team provides high-quality and cost-effective solutions targeted to meet our client’s business needs.
Why Do We Need a Valuation?
All the above groups of people do a business valuation for the following reasons.
Litigation and Arbitration
There are several instances that can lead to the need for a business valuation under litigation and arbitration. Some include damages assessments, bankruptcies, and shareholder disputes. In some other cases, it becomes necessary during buying of minority or majority shares. For example, in case of shareholder disputes, a business valuation will be conducted to assess what every shareholder should receive once a company is dissolved.
On the other hand, filing for bankruptcy also goes hand in hand with carrying out a business valuation. It is the best way to deal with shareholders and debtors under these circumstances. When a judge offers a judgment revolving around the assessment of damages, what’s awarded is usually determined by the principles guiding business valuation.
Transactions
Some of the parties requiring a business valuation for transactions reasons include financing, mergers & acquisitions, and exit planning. The same is also conducted when a firm seeks an Initial Public Offering (IPO). In this case, the business valuation findings help investors decide whether to invest in the company or not.
The valuation also plays a huge role in determining what one party should pay to acquire the other during mergers and acquisitions. Otherwise, a company may buy another company and realize that it wasn’t worth much when it is too late. That is avoidable, and all that needs to be done is identify its value before committing.
It is also advisable for any lending institution to evaluate the value of a business before any transaction. This rule also applies to any other party willing to finance an organization. Only the financers know what the company is in a position to pay and a figure beyond its paying capabilities.
Financial Reporting
When carrying out portfolio valuations, goodwill impairment testing, or purchase price allocation, conducting a company valuation can go a long way. What price does a business pay for every asset or liability during an acquisition? That’s yet another question that a valuation can help you answer. There is also the issue of the business’s goodwill value, not forgetting the write-off of what value may be lost after it acquires the business from its previous owner.
Fund managers also know all too well that portfolio valuations also need to be done for several reasons. They include compliance since it is a regulatory requirement, audits, financial reporting, and investor reporting.
We are a specialized buy and sell valuation company providing end-to-end assessment services when you want to exit or invest in any business. Our team has extensive experience in the field of valuation
Get Services Online
We are a specialized buy and sell valuation company providing end-to-end assessment services when you want to exit or invest in any business. Our team has extensive experience in the field of valuation
EXPERIENCED TEAM
Our valuation team is headed by a professional having more than 20 years of experience.
COMPETITIVE PRICING
We are all about delivering value at competitive pricing to our clients that will fit your budget.
CONFIDENTIALITY
We ensure that all financial data gathered and provided are kept completely confidential.
Your Business Needs to Stay Dynamic in a Complex Ecosystem
Valuation for Acquisition
We provide our clients with professional independent valuation advice, giving them an edge in negotiations and preventing them from overpaying. With our research data, management teams can acquire their target companies at a fair value.
We also structure acquisition transactions in the best possible way.
Internal Valuation for Selling Business
We conduct detailed and comprehensive business valuation exercises to determine the acceptable fair value of a business. The detailed research and analysis we provide give our clients leverage when making negotiations, helping them acquire or sell a company at their desired but reasonable value.
Valuation for Equity Dilution
We assist clients in calculating the fair value of equity to be issued to new shareholders or existing shareholders and provide consultations related to it. We assist in finding the fair value of shares and the value at which it is issued to existing stakeholders.
OUR DETAILED APPROACH
Valuation is a complex process, and the right methods depend on different factors like industry, stage of the company, size of the company, business models, etc. We apply unique models for each of our projects based on our detailed analysis.
CONNECT
Arriving at the proper company valuation parameters when buying or selling a business is one of the most critical aspects of a buy-sell transaction, and often, inappropriate valuation values can result in many issues. Hence, it is imperative to obtain the proper worth of a business before buying or selling it.
Valueteam is a trusted name that can help you in meeting your company’s valuation needs. Our team comprises valuation experts with rich and varied industry experience and knowledge who can evaluate your company’s data from a business and valuation viewpoint and suggest the most appropriate valuation packages at the most competitive rates.
We, at Valueteam, have gained several years of practical and analytical knowledge gained through the valuation of both private and public companies. We apply this knowledge during the buy-sell valuation process to offer your best valuation suggestions. Connect with us and choose the right valuation plan to meet your business needs.
Connect with us and choose the right valuation plan to meet your business needs. We will evaluate your company’s data and make the proper valuation scope at the most competitive rates.
ANALYZE
In buy-sell transactions, usually, the buyers of a business will want the purchase price of a company to be low, and the sellers want it to be high. Whether you are planning to buy a business or sell it, collaborate with Valueteam to obtain the right purchase price.
With our unique business valuation approach, we review your company data at the entity level and conduct a detailed and comprehensive analysis of pertinent information and data to fully understand the factors that impact and drive your company’s value.
We carefully study the documents submitted for any assets not recorded in the balance sheet or recent purchases missed out in the data provided during the analysis.
We also undertake management interviews, assess the value of your company assets, unique elements of the business, success factors, and then decide on the methodologies that should be taken up for carrying out the buy-sell valuation of your company.
APPLY
After a detailed analysis of your company’s data and gathering important qualitative and quantitative data for valuation, we will apply our unique and proprietary methodology to assess your business.
Our valuation methodology encompasses detailed analysis, industry research, and business value. Based on the data and our experience, we choose the right and customized valuation models to provide the company’s proper valuation.
Valuation of the company required lots of experience and understanding of the company, economy, industry, stage of business cycles, and situations. The right combination of these factors results in an ability to choose suitable valuation models.
This ability and understanding of selecting suitable models are very crucial for the proper valuation of the company. With our proven valuation methodologies, we can offer the right buy-sell valuation advice for your company.
After a detailed analysis, we will apply our unique and proprietary methodology to assess your business. With our experience and unique valuation methods, our estimates are at a fair value for both parties involved.
REPORT
Our valuation report contains company analysis, industry analysis, value drives, assumptions, and final valuation. The reports contain clear and transparent data with in-depth analysis and detailed asset descriptions.
It also explains how we arrived at the results and conclusions with details of our analysis to justify our valuation. Our valuation reports are in the form required by various stakeholders and end-users to meet their requirements and business needs.
Such a comprehensive report is invaluable and can make you sure about your business and receptive to anticipated and unanticipated business changes in the future.
Thus, with our assistance, you can take up careful planning and proper negotiation to get the correct value of your business. You can connect with our team to discuss more and understand how we can help you in the valuation of your business.
Factor to be considered before conducting a company Valuation
There are several factors that need to be considered during a company valuation. Whereas people know that all too well and pay enough attention to them, they often overlook one thing. There is a factor worth considering before you carry out a business valuation. Ensure that you identify the purpose of that particular undertaking.
It is important to figure out why you are evaluating your business in the first place. Are you doing it because you plan to sell the business? Do you plan to venture into the stock exchange or any other investment? Once you have the answer to such questions, it will be easy to determine the factors to consider once you start the valuation.
Valueteam offers diverse and reliable valuation services trusted by companies all over the world. We have vast experience across all business sectors providing you the best solutions for your needs
Different methods of valuation
Different methods and approach to Valuation
Valueteam offers diverse and reliable valuation services trusted by companies all over the world. Some of the valuation methods methods applied are
- Historical Earnings Valuation
- Future Maintainable Earnings Valuation
As the name suggests, this method of valuation uses a business’ future profit to calculate its current value. It is advisable to use it where there are high chances of the profits remaining stable even as time goes by. It involves evaluating the company’s gross profits, profits, expenses, and sales over the last three years. Once you put all that into consideration,
- Market-Based Approach (Precedent Transactions Vs. Trading multiples)
- Revenue multiple
- EBITDA Multiple
- Price-to-Earnings Multiple (P/E Ratio)
- Dividend Yield
- Price/Sales (P/S)
- Price/Book Value (P/BV)
- EV/EBITDA
- Price/Book Value
- Capitalization of Earnings Method
- EBITDA Multiple
- Revenue Multiple
- Book Value/Liquidation Value
- Real Option Analysis
- book value of equity formula
- Asset-based approach
- Book value vs. market value
- The Net Asset Value
- Replacement Cost Method –
- Income-based approach
- Discounted Cash Flow
- Free Cashflow to Equity
- Free Cash Flow to Firm
OUR EXPERTISE
Diverse and Reliable Services
Valueteam offers diverse and reliable valuation services trusted by companies all over the world. We have vast experience across all business sectors providing you the best solutions for your needs
Valuation Specialist
We offer specialized and quality business valuation and consultancy services delivered within the set timelines. Our customized services are provided by experts who are regularly updated with the latest events on the global market.
Customized and Cost-Effective
Our professionals have deep-rooted research mindsets and provide high-quality and cost-effective solutions targeted to meet our client’s business needs.
HOW DOES VALUATION HELP YOUR BUSINESS?
Benefits of valuing a business
Business valuation can help you to buy or sell a business with ease, discuss better terms with the buyers or sellers of the company and choose the right time for selling or buying a business
Stimulate Growth
Periodic valuation is a good practice because it helps you evaluate and appraise your business functioning; uncover business areas that need improvement, and quickly raise capital for your business
Valuing your business can help you to buy or sell a business with ease. Determining the business valuation process can help you to:
- Enhance your company’s actual or perceived value;
- Discuss better terms with the buyers or sellers of the business;
- Choose the right time for selling or buying a business;
- Expedite the buy-sell valuation process.
What type of valuation services company are you?
How much time does it take to carry out a buy-sell valuation?
What are the different methods used in a valuation?
Why should you take up a buy-sell valuation?
What information do you need to do a valuation?
M&A VALUATION
We assist in the valuation of target companies, PPA, and EPS analysis, both pre and post-transaction.
INTANGIBLES VALUATION
We provide all kinds of intangibles like patents, trademarks, IPs etc valuation services for our clients.