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Business Valuation Services

Business valuation is an elaborate & dynamic process. Business valuation is an elaborate & dynamic process. It typically involves collecting and analyzing a wide range of financial and non-financial data including financial statements, industry trends, market conditions, competitive landscape, management quality & more. There is no one-size-fits all approach to it. Different industries and types of businesses may require different valuation methods & assumptions. Companies with layers of capital structures, such as multiple classes of shares or convertible securities, can pose challenges in determining how these factors affect the overall value. Making subjective judgements about future cash flows, growth rates & risk factors add up the complexity. Macro-economic factors such as interest rates, industry trends can introduce uncertainty in the valuation process. Given these challenges, business valuation often requires a combination of financial expertise, industry knowledge and careful analysis to arrive at a reasonable and defensible valuation. It's important to involve experienced professionals and consider multiple perspectives when conducting a business valuation. Due to the complexity and subjectivity involved, obtaining a valuation from qualified professionals is recommended to ensure accuracy and credibility. That’s exactly where BCL India’s unmatched talent pool of professionals with technical expertise come handy. Our experts have relevant certifications and a strong understanding of valuation methodologies. We assure you that we offer consistent and trustworthy Business Valuation Services to our clients.

About Services

The Business Valuation Services provided by BCL India involve the process of determining the economic value of a business or company. It is both an art and a science, as it requires a combination of financial analysis, industry knowledge and professional judgement.  The goal of business valuation is to estimate the fair market value of a business. There are several approaches to business valuation, they are: Discounted cash flow approach (Income approach), market approach, asset-based approach & hybrid approaches.

Why use Business Valuation Services?

  • Valuation is the heart of Financial Decision Making. Valuation provides a baseline for future targets and a course for the future. Valuation is required in many contexts including investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability.
  • According to Section 247 of Companies Act 2013, valuation is mandatory in respect of shares, stocks, debentures, prospectus, goodwill securities, or any other asset under any of the provisions of this Act.
  • Business valuation shall be done by a registered valuer who is a member of a valuer organisation
  • As per RBI guidelines, for any investments in Shares or securities valuation is required.
  • When a Company under Liquidation, business valuation is mandated under the law.
  • Valuation is mandatory when there is a sale of shares, sale of a company.
  • Valuation is very much required, when a company undergoes the process of fundraise via fresh equity or fresh issue of Preference shares or securities.

How can BCL help you with Business Valuation Services?

BCL India’s evaluators create a meticulous valuation documentation

We have team of registered valuers & can issue valuation report

We provide various services viz., fair valuations, impairment testing, valuation of portfolio equity or debt investment

We help in your decision making by providing advisory services in areas of M& A’s, divestitures, investments, financing, startup fund raise, and other strategic moves.

Why should I choose BCL for Business Valuation Services

  • BCL India has 30+  years of combined experience and possess a right combination of expertise, resources and qualities to provide accurate and reliable Business valuation services
  • We have qualified team of experts who are certified valuers and strong educational backgrounds in finance, accounting, economics, and other related fields
  • We are well versed in various valuation approaches such as income approach, market approach & asset based valuation approach
  • We prioritise in maintaining the confidentiality and security of client information and sensitive business data
  • The valuation field is dynamic, hence we at BCL have ongoing professional developments and stay updated on industry trends
  • We adhere to ethical guidelines and professional standards which is essential for maintaining objectivity, integrity and client trust
  • We adapt to changing market conditions, client preferences and evolving valuation methodologies

Frequently Asked Questions

How long does business valuation take?

The time required for a business valuation can vary widely depending on factors like the complexity of the business, the valuation method used, the availability of data, and the purpose of the valuation. It could take anywhere from a few week to several weeks.

When is the right time to conduct a business valuation?

Business Valuation will be necessary during significant events, such as mergers and acquisitions, raising capital, demerger, Slump sale, Business sale, Corporate disputes, IPO, Liquidation, issuing shares to Non residents and financial reporting.

Which are the laws in India that specify the requirement of valuation?

Valuation is required in India under Company Law, Income Tax Law, Foreign Exchange Management Act (FEMA), Securities Exchange Board of India regulations, IBC Code, 2016 and LLP Act, 2008. 

Which are the scenarios in which Valuation is necessary?

Valuations are necessary for Fresh issue and Transfer of shares, Business combinations/Mergers & amalgamations, Employee stock option plan and sweat equity, Insolvency and bankruptcy code, Financial reporting etc.

What information needs to be contained in the valuation report? Information in Valuation report are
  1. Background Information of the asset being valued
  2. Title & Executive Summary
  3. Assumptions & Limiting conditions being considered while carrying out valuation
  4. Deliverables delivered through the report 
  5. Timelines in terms of valuation date, report generation and submission date
  6. Approach(es) of Valuation
  7. Key inputs used in report 
  8. The estimates / projections used in the report

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