Companies seek business valuations for corporate governance, regulatory compliance or for management review as a critical input in decision making process. It may be planning a major acquisition, resolving a shareholder, or joint venture dispute, seeking to reduce the gap between intrinsic and market value.
Over the years, Businesses have witnessed a paradigm shift from providing physical goods & services to companies that provide technology, digital goods, and data services. Also, businesses outside of this digital realm, are investing more and more into intangible assets like brands, technology, customers, and software platforms.
Valuation of assets is a key factor for an “informed decision making” under the Insolvency and Bankruptcy Code (IBCIB,). A key objective is to be transparent and have credible determination of value of the assets to facilitate comparison and informed decision making by the committee of creditors
Plant, Machinery & Equipment’s are items under Personal Property; that are usually held by an asset intensive business entity for use in either manufacturing/production, supply of goods/services, for lease to third party or for administrative purposes and that are expected to be used for more than a year.
Valuation of Real Estate deals with all types of legal interests arising out of Land and Building which are exchanged for money and therefore entails the phenomena of exchange, scarcity and choice that characterizes a ‘market’ in the economic sense of the term. Property is purchased both for use and investment; however, in both the cases the purchaser measures the expected return or benefits to be received from the property against the investment made.
Investment in Infrastructure has always been a key driver and determinant to the growth of Nations. India has traditionally been an Infrastructure deficit country, but the increased economic and population growth has created an urgent and immense need for investment in essential infrastructure such as roads and civil infrastructure, ports, railways, airports, power & energy etc.
Real Estate Infrastructure Trusts and Infrastructure Investment Trusts are increasingly becoming preferred mode for raising capital by developers of real estate/infrastructure assets.
nvestment in Infrastructure has always been a key driver and determinant to the growth of Nations. India has traditionally been an Infrastructure deficit country, but the increased economic and population growth has created an urgent and immense need for investment in essential infrastructure such as roads and civil infrastructure, ports, railways, airports, power & energy etc.
Financial reporting usually require impairment assessment of Cash generating units (‘CG‘CGU”), Tangible Assets and Intangible Assets at periodical intervals or as and when circumstances indicates that there is a diminution in the valuation of the asset.
Mining assets are very challenging to value. The best way to value a mining asset or company is to build a discounted cash flow (DCF) model that takes into account a mining plan produced in a technical report (like a Feasibility Study mentioning the probable and possible mining reserves).
Valuation of New Age Companies often poses unique challenges due to their evolving business model(s), limited/lack of comparables, evolving technologies and market dynamics.
Strategic decisions are required to be taken by the board of directors for driving the next level of growth and development of the Company. Chasing strategic growth through merger and acquisitions, leveraged buyout, amalgamations, demerger or any other means requires a Category I Merchant Banking Firm registered with SEBI to offer an independent opinion on the transaction that reassures the Company’s stakeholders on the fairness of the deal-making decisions taken by the board of directors, and thus withstanding scrutiny and improving shareholder transparency.
Tax strategies are becoming increasingly complex and highly scrutinized by regulatory authorities worldwide. Also, with fresh vigour in Companies Act, 2013, companies require valuations for various compliance and regulatory requirements.
Financial Instruments Valuation includes determining the Fair Value of equity instruments, debt instruments, derivatives (option and future contracts) and embedded derivatives (convertible bonds / preference shares). Financial Instruments may require valuation for commercial, financial reporting or regulatory purposes.