Business Valuation
Lifecycle
Scope Of Valuation Of Business Operations:
Product/Service Segments in the Same Territory (eg. Pharma Manufacturing in Hyderabad and Software Division in Bengaluru) Product/Service Segments in multi-nationals (Manufacturing in India and Sales in UAE/USA) Horizontal Acquisition (Same industry – Acquisition of competitor) Vertical Acquisition (Acquisition of Supplier/Customer) Conglomerate Acquisition (Acquisition of a company in a different industry for eg. Manufacturing Company acquiring Software Company) Mergers (A Ltd. and B Ltd. becoming AB Ltd.) Takeovers (A Ltd. taking over B Ltd.) Demergers (Hotel business is separated into 2 for 2 joint owners) Purchase Price Allocations
Transaction
- Buy Side & Sell Side
- Deal Making
- FV of Net Assets as at Acquisition Date
- Mergers & Demergers
- Share Exchange Ratio
- Horizontal & Vertical Acquisitions
Compliance
- Fair Value Compliance
- Impairment Testing
- Purchase Price Allocation
- Non-Control Investments at FVTPL
- Valuation of Minority/NCI in Consol
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Multiple Segments means Multiple levels of Risks
Different Territory = Varied Risks
Multiple Currency Revenue/Cost
Valuation Complexities
Levering and Unlevering Beta based on a unique and changing capital structure
Identifying Control Premium
Diversified Segments under One Company
Separating Intangible Assets
Geographical Segments in Multiple Nations (MNCs)
Valuation Complexities
High growth potential
No revenues and operating losses
Uncertain call future potential
Primary asset = IP
Expected ESOP
Negative bottom line
Private entity (non-comparable listed entities)
How we can help you
Observing Data of Deals in the Market
Adjusting Research Expenditure
Understanding Cyclical/Seasonal Nature of Industry
Proper Adjustments for country risks, business risks, cash flow risks, and entity specific risks
Identifying Comparable Deals
Use of bottom-up Beta
How we can help you
Observing Data of Deals in the Market
Understanding Cyclical/Seasonal Natureof Industry
Identifying Comparable Deals
Adjusting Research Expenditure
Proper Adjustments for country risks, business risks, cash flow risks, and entity specific risks