Non-Monetary Transactions With Directors
Lifecycle
In case of non-cash transactions with Directors, prior approval of such transaction in general meeting is necessary. Along with approval, the calculated value of assets involved by registered valuer is also mandatory by law [Section 192(2) of Companies Act, 2013]. Non- Monetary transactions are to be understood in substance in order to identify the fair value of either asset acquired/ asset given up. Comparing market data of similar transactions, attaching betas, and identifying volatility in the price are key challenges in such valuation. One has to equally eliminate the influence of related party transaction while estimating the fair price.
Non-Monetary Transactions With Directors
Lifecycle
In case of non-cash transactions with Directors, prior approval of such transaction in general meeting is necessary. Along with approval, the calculated value of assets involved by registered valuer is also mandatory by law [Section 192(2) of Companies Act, 2013]. Non- Monetary transactions are to be understood in substance in order to identify the fair value of either asset acquired/ asset given up. Comparing market data of similar transactions, attaching betas, and identifying volatility in the price are key challenges in such valuation. One has to equally eliminate the influence of related party transaction while estimating the fair price.
Share for Share Exchange of Unlisted Entities
Valuation Complexities
Fairness of related party transaction
The fair value of any asset acquired is different from the fair value of an asset given up
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 can we help you?
Observing Similar Deals Data
Independent Valuations of all assets exchanged
Regression Analysis for Share Price
Team of IBBI Registered Valuers in all classes of assets
How can we help you?
Observing Similar Deals Data
Regression Analysis for Share Price
Independent Valuations of all assets exchanged