Clear, defensible business valuation services for fundraising, M&A, ESOPs, regulatory compliance and financial reporting. We work closely with founders and management to understand the business behind the numbers, and to help you negotiate and defend your value with investors, buyers and regulators.
Business valuation is the process of determining the economic value of an entire business, a strategic business unit, a department, or even a single store or asset.
For an entrepreneur, it is a defining moment, because that number reflects the time and effort invested in building the business. For investors, buyers, lenders, regulators and auditors, it is a key input to decisions. A sound valuation balances financial performance, future potential, market conditions and risk, and it must stand up to scrutiny.
We believe that valuing a company is a collaborative effort between our experts and the company's founders and management. With their input, we understand the business model better, and gain insight into how the business really operates.
This lets us build a more realistic financial model. It also lets us give founders practical input to strengthen their business model and revenue model, so the business is more investable. With a clearly defined model and realistic numbers, founders are better placed to negotiate, and to defend their valuation with potential investors.
Valuing a start-up is a different exercise altogether. Effort, time and continuity all count, but other factors often matter more. A business that is gaining market share and disrupting the traditional way an industry works can command a much higher valuation than a traditional business in the same space.
A start-up valuation needs a thorough understanding of the business model, how far it can scale, how disruptive it is, and the market segment it will change. This is where professional valuation adds real value, both for fundraising and for ESOP pricing.
An established business may not be disruptive, but it may be emerging as a leader in its segment, with strong cash flows, customer relationships and assets. Compared with high-growth start-ups, traditional businesses can appear undervalued.
With expert analysis of earnings quality, growth drivers, assets and risks, and with clear guidance on improving key value drivers, an established company can avoid undervaluation in a sale, a fundraise or a succession event.
| Purpose | Typical requirement |
|---|---|
| Fundraising | Pre-money valuation for negotiating with angel, VC and PE investors |
| Mergers, acquisitions & JVs | Fair value for buy-side or sell-side decisions, swap ratios and joint venture contributions |
| Companies Act, 2013 | Valuation by an IBBI Registered Valuer for specified transactions, such as certain share issues, mergers and schemes of arrangement |
| Income tax | Fair market value of unquoted shares under the prescribed rules, for share issues and transfers |
| FEMA (foreign investment) | Pricing of shares issued to, or transferred between, residents and non-residents, using an internationally accepted pricing methodology |
| ESOPs & financial reporting | ESOP fair value, purchase price allocation, impairment testing and fair value under Ind AS |
Where the law requires a valuation by an IBBI Registered Valuer or a SEBI-registered Category I Merchant Banker, the report is prepared and signed by a qualified registered professional.
Values the business on its projected future cash flows, discounted at a rate that reflects risk. Widely used for growing businesses and regulatory valuations.
Benchmarks value against listed peers using multiples such as EV/EBITDA, EV/Revenue or P/E.
Uses prices paid in recent deals for similar businesses as a reference point.
Values the business on the fair value of its assets less liabilities. Suited to asset-heavy, holding or investment companies.
Venture capital, scorecard and milestone-based methods for pre-revenue and early-revenue start-ups.
We usually apply more than one approach, then reconcile them. We explain clearly why the final value is reasonable for the purpose of the valuation.
We confirm the purpose, valuation date, standard of value and any regulatory requirements.
We hold founder and management discussions on the model, market, competition and plans.
We review historical financials and earnings quality, and test the projections.
We build the valuation model using appropriate approaches and market data.
We walk you through key assumptions and sensitivities before the report is final.
We issue a clear, defensible valuation report, and support you in negotiations or with regulators.
Tell us the purpose of the valuation and a little about your business. We will suggest the right approach and timeline, at no cost and with no obligation.
Book a Free Valuation ConsultationShare the purpose of the valuation and your business details. We usually respond within one business day.
