Globefin

Valuation

Valuation for Companies

Valuation is the process of determining the true value of a company or business. It can focus on the entire organization, an ownership interest, specific liabilities, or assets. Understanding the importance of valuation is essential for companies to make informed decisions and plan for future growth. It plays a crucial role in financial markets, influencing both corporate and investor actions.
Valuation empowers businesses to make strategic decisions and identify key drivers of success. By recognizing these factors, companies can focus on enhancing them, ultimately maximizing their business value.
We provide specialized buy and sell business valuation and consultancy services, delivered within set timelines. Our customized valuation solutions are crafted by experts who stay up to date with global market trends, ensuring high-quality, cost-effective results that meet our clients’ business needs.

Why Do We Need a Valuation?

All the above groups of people do a business valuation for the following reasons.
Some of the prominent reasons for needing a valuation report are listed below:
Business valuations are often required in litigation and arbitration cases, such as damages assessments, bankruptcies, and shareholder disputes. For instance, during shareholder disputes, a valuation helps determine each shareholder’s entitlement when a company is dissolved. In cases of bankruptcy, valuations are essential for addressing shareholders and debtors. Additionally, when a judge rules on damages, the award is typically based on business valuation principles.
Business valuations are crucial for various transactions, including financing, mergers and acquisitions, and exit planning. They are also necessary for firms preparing for an Initial Public Offering (IPO), helping investors assess the company’s value before committing. During mergers and acquisitions, valuations ensure that one company pays a fair price for another, preventing costly mistakes. Lending institutions and financiers also rely on valuations to evaluate a company’s ability to meet its financial obligations.
Valuations are integral to financial reporting, including portfolio valuations, goodwill impairment testing, and purchase price allocation. They help determine the cost of assets and liabilities during acquisitions, assess the goodwill value, and manage any potential write-offs after a business changes ownership. Fund managers also conduct portfolio valuations for compliance, audits, financial reporting, and investor reporting.

Regulatory Requirement

A valuation report from a Registered Valuer is required as per the regulations of the Companies Act 2013, for the following purpose:
  • Fresh Issue of Shares
  • Preferential Allotment
  • Sweat Equity
  • Purchase of Minority Shareholding
  • Valuation of Assets Involved in Arrangement of Non cash transactions involving Directors
  • Purchase of Minority Shareholding
  • Merger and Amalgamation
  • Scheme of Corporate Debt Restructuring
  • Valuation under IBC
GlobeFin specializes in providing a comprehensive valuation services, offering end-to-end assessments for clients looking to exit or invest in a business. Director of GlobeFin is also a registered valuer in India who can issue valuation reports for various regulatory purpose. Our team brings extensive experience and expertise in the field of valuation.

Valuations

We specialize in a range of valuation services, including business, company, equity, intellectual property, brand, dispute, and employee stock ownership plan (ESOP) valuations, all offered at highly competitive rates. Our director is registered with the Insolvency and Bankruptcy Board of India (IBBI) as a Registered Valuers for asset class Securities and Financial Assets.

Buy & Sell Valuation

We provide specialized and high-quality business valuation and consultancy services for buy and sell transactions, all delivered within agreed timelines. Our tailored valuation services are handled by experts who stay informed about the latest global market trends. Our team focuses on delivering high-quality, cost-effective solutions that align with our clients' specific business needs.

ESOP Valuation

At GlobeFin, we make sure that the costs associated with your Employee Stock Ownership Plan (ESOP) are accurately estimated and documented. Utilizing our industry knowledge and experience, we apply various models to deliver precise ESOP valuations and calculations. We assist you in considering all relevant factors and variables in accordance with the guidelines and standards applicable to your company and its industry.

Company Valuation

We conduct valuations by analyzing factors such as business strength, financial performance, organizational strategies, capital structure, future earnings potential, asset market value, and the experience of the management team. This comprehensive data enables us to produce a reliable company valuation report tailored to your specific needs and requirements.

Intagibles Valuation

A trusted partner for valuing your organization’s intangible assets, we serve all sectors and industries, at any business stage. We apply a range of valuation methods, whether it’s the standard financial approach or research-driven analysis, based on the nature of the intangibles. Key methods include the cost, income, and market approaches.

Brand Valuation

We are a leading provider of specialized brand valuation services, offering competitive pricing packages. Our detailed analysis ensures an accurate assessment of your brand’s value, supporting joint ventures and strategic alliances. With our brand valuation services, you can avoid overpaying in M&A transactions, and our team will help determine the fair value of your brand, enabling you to raise funds against your brand assets.

M&A Valuation

We provide reliable mergers and swap ratio valuation services, offering independent and advanced valuation solutions. We utilize precise valuation methods to deliver detailed analytical insights that meet our clients' business needs. Whether for restructuring or acquisition, we ensure hassle-free access to accurate share-swap ratios.

Startup Valuation

Our start-up valuation services in Singapore are designed to help you raise funds at the best valuation. With deep expertise in valuing startups, we assist clients in securing investment and provide shareholders with guidance by carefully assessing buyback offer prices. We ensure accurate business valuation, enabling you to issue shares to employees at the right price.

Convertible Instruments Valuation

We provide expert valuation solutions for convertible instruments, which convert into equity during events like M&A, management changes, or liquidity events. Leveraging the latest market trends and standards, our CCPS valuation techniques address valuation gaps between investors and promoters. We offer in-depth advice and uses cutting-edge methodologies and software for OCPS valuation. Trust us to meet all your convertible instrument valuation needs.

Why Choose Globefin

We are a specialized valuation firm offering comprehensive assessment services for clients looking to exit or invest in a business. We also provide valuation reports from Registered Valuer as per the requirements of the Companies Act.

Experienced Team

Led by a valuation expert with over 15 years of experience.

Competitive Pricing

We are dedicated to delivering exceptional value at competitive prices that suit your budget.

Confidentiality

We prioritize the confidentiality of all financial data collected and provided.

In buy-sell transactions, buyers typically aim for a lower purchase price, while sellers seek a higher one. Whether you’re planning to buy or sell a business, partnering with GlobeFin ensures you achieve the right purchase price.
Our unique business valuation approach involves reviewing company data at the entity level and thoroughly analyzing key information to understand the factors influencing your company’s value.
We carefully examine documents for unrecorded assets or recent purchases that may have been overlooked in the data provided.
Additionally, we conduct management interviews, assess company assets, identify unique business elements, and evaluate success factors to determine the most appropriate valuation methodologies for your buy-sell transaction.
In buy-sell transactions, buyers typically aim for a lower purchase price, while sellers seek a higher one. Whether you’re planning to buy or sell a business, partnering with GlobeFin ensures you achieve the right purchase price.
Our unique business valuation approach involves reviewing company data at the entity level and thoroughly analyzing key information to understand the factors influencing your company’s value.We carefully examine documents for unrecorded assets or recent purchases that may have been overlooked in the data provided.
Additionally, we conduct management interviews, assess company assets, identify unique business elements, and evaluate success factors to determine the most appropriate valuation methodologies for your buy-sell transaction.
After thoroughly analyzing your company’s data and gathering essential qualitative and quantitative information for valuation, we apply our appropriate valuation methodology to assess your business.Our approach combines detailed analysis, industry research, and business valuation expertise to select customized models that accurately reflect your company’s worth.
Valuation requires deep experience and an understanding of the company, industry, economic conditions, and business cycles. The right combination of these factors allows us to choose the most appropriate valuation model.
Through our comprehensive analysis, we shall evaluate your business by employing exemplary and appropriate methodology. This expertise is essential for the accurate valuation of your company, and our proven methods ensure fair value estimates for both parties in the transaction.
Our valuation report includes company analysis, industry insights, value drivers, assumptions, and the final valuation. It offers clear and transparent data with in-depth analysis and detailed descriptions of assets. The report also outlines how we reached our conclusions, providing a comprehensive explanation and justification of our valuation.
Our reports are tailored to meet the needs of various stakeholders and end-users. This comprehensive documentation not only helps you understand your company’s value but also prepares you for both expected and unforeseen business changes in the future.
Therefore, with our assistance, you can engage in careful planning and effective negotiation to ensure you get the right value for your business. Connect with our team to learn more about how we can support your business valuation needs.

Factor to be consider before conducting a company valuation

Several factors play a crucial role in the company valuation process, but one often overlooked aspect is the purpose behind the valuation. Before initiating a valuation, it’s essential to identify the reason for it. Are you evaluating the business to prepare for a sale? Or are you planning to take the company public or pursue new investments? Defining the purpose will help guide the valuation process and determine which factors should be prioritized.

At GlobeFIn, we provide a range of trusted and reliable valuation services to meet your specific needs. With extensive experience across all industries, we are equipped to offer tailored valuation solutions for businesses worldwide.

Different methods of valuation

Various approaches can be applied when valuing a company. GlobeFin employs several trusted valuation methods, including:

Historical Earnings Valuation

This method evaluates a company’s past earnings to determine its current value.

Future Maintainable Earnings Valuation

This approach calculates the company’s current value based on its projected future profits. It is best used when there’s a high likelihood that profits will remain stable over time. The method involves reviewing gross profits, expenses, and sales over the past three years to provide an accurate valuation. These methodologies are carefully selected based on the business’s circumstances and the purpose of the valuation, ensuring accurate and reliable results for our clients.

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 Valuation Reports Specifications

Target Audience

Business Owners, Buyers of the Business, SBA, Divorce process Reporting as per the requirements of the Companies Act 2013, IBC

Document Length

15-30 pages

Timeframe

10 days

Assigned Team

1 senior Valuer with 1 project assistant

Unlimited Revision Period

2 weeks

Rush Delivery Service

Available

Content of the Valuation Report

  • Appraisal of the Company
  • Description of the Appraisal Assignment
  • Company Overview
  • Industry Analysis
  • Basis for Valuation
  • Business Valuation Approaches And Methods
  • Valuation Analysis
  • Appendices
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Samples of valuation done by Globefin

Fraud Detection and Prevention

Asset Management

University

Media

NCD

Valuation Sample

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