Business Valuation

How to evaluate a Business Value?

There are several ways to evaluate a business or brand to ascertain its near-to-accurate value.

We generally follow two methods and sometimes adopt more professional modes to get fair value.

First Method

• Value is dependent on the calculation or expectation of the parties involved
• Future cash flows of the Business
• Tangible capital asset available with Business

Second Method

Asset Method

• Book Value: Net Worth = Asset – Liabilities shown in Financial Statement
• Liquidation Value

Earnings & Cash Flow

• Future cash flows of Business
• Comparing current cash flows with future inflows to make projections

Documents Required

• Company Trade License
• Last 3 years VAT Returns / Balance Sheet
• Company Profile / Website Address
• Business Value Expectation
• Service Agreement for Consulting Permission & Fee Payment

Process Time

Any business Buy or Sell deal may take anywhere from 3 or 12 months depending on its size, nature and investments, factor.