Business Valuation is the process of estimating the value of a company or a business unit or even a specific asset. Business valuation can be used to determine the fair value of a business for a variety of reasons, including estimation of sales value, establishing partner ownership, periodic reporting, and regulatory purposes. The value of a company is dependent on multiple factors including nature of industry under it operates, its stage of development, target geographies and capital structure.

It’s imperative to select the right methodology for the valuation. The exact approach depends on the business size, size of ownership interest (minority vs majority) under consideration, definition of value (intrinsic value, market value, breakup value, etc.) and purpose of valuation (legal, financial reporting, merger and acquisitions, etc.).

Business valuation requires a significant understanding of the Company’s value creation in the past and how the management is planning to create value for its shareholders going forward.
Regardless of the purpose of your business valuation, we at Averroes with years of experience in valuating companies in different industries understand the process very well and will able to customize the approach to suit your business type, industry and purpose.