Business valuation is a complex decision making process. Business valuation estimates the economic value of a business which is determined for a variety of purposes like transactional analysis, litigation support, taxation and regulatory purposes. Also, known as business appraisal, this formal process is an advisory service offered to interested parties for letting them know the value of their interest in a business or company.
Purpose and Importance
Recognizing the purpose of valuation is the key step in Business valuation and Advisory because this recognition puts the next steps in action. Also, this recognition determines the “basis of value” or “standard of value” to be applied which in turn dictates for the method, techniques and assumptions to be used for valuation. All the valuations, irrespective of the purpose, have some common characteristics, however, differences also exist which need to be analyzed in analysis. Such differences may influence business valuations profoundly and hence need to be studied profoundly.
This determination is not only important merely for the business owners who own the business directly or indirectly, but, is important for succession, business planning, IFRS purposes, fund raising, assessing intellectual property and settling legal disputes.
At Veristrat, we assist our clients with comprehensive business valuation and advisory services related to businesses, fixed assets, financial reporting, fairness opinions and corporate recapitalizations.
How we support you?
- Performing financial valuation including businesses, equity, intellectual property and financial instruments in accordance with applicable standards and regulations.
- Conducting DCF analysis to calculate intrinsic value per share using FCFF and FCFE metrics.
- Comparable analysis using publicly traded company and transaction multiples.
- Valuing Intellectual property which includes patents, copyrights, technology, IPR&D etc.
- Goodwill impairment analysis as per ASC 350.
- Carrying out comprehensive analysis of cash and derivatives financial instruments.
- Allocating purchase price consideration paid in M&A transactions among various tangible and intangibles assets.
- Valuing derivatives using complex models such as Black Scholes Option Pricing and Monte Carlo Simulation.
- Computing fair value of complex securities such as preferred stock and debt using multiple approaches.
We at Veristrat have the required set of skills and perform businesses valuation for startup as well as mature companies. Veristrat offers valuation and advisory services across different industries in various geographies like UK, Australia and U.S by focusing on the details so as to deliver flawless results to meet client expectations.