Information

Valuation is the process of determining the current worth of an asset or company. Valuing businesses require analyzing a variety of multifaceted aspect including comprehensive technical knowledge of value drivers and in-depth industry knowledge. Valuation is carried out due to the following rationale such as Merger and Acquisition, Licensing, Financial Reporting, Bankruptcy or Reorganization, taxation, Legal, Financing, Securitization, etc.

Our Valuation Services are stated below :-

Financial Valuation Services Assets Valuation Valuation under Regulatory Compliance
  • Business Enterprise Valuation for restructuring / purchase / sale / litigation
  • Stock and Stock Option Valuations
  • Start-Up Company Valuations
  • Portfolio valuations for Private Equity Funds
  • Valuation as required under IND AS
  • Tangible Property Valuations
    • Plant & Equipment
    • Real Estate, Land, Buildings and Leases
  • Intangible Property Valuations (Intellectual Property)
    • Trademarks, Trade Names,
    • Brands
    • Goodwill
    • Transfer Pricing
    • Software
    • Non-Compete Agreements
    • Patents
  • Valuation to be done as required by Tax Authorities
  • Valuation to be conducted by registered valuer as per The Companies Act 2013
  • Valuation to be conducted for foreign exchange transaction under FEMA & RBI regulations

Key Features :-

  • Obtain True Company value
  • Benchmarking growth
  • Being prepared for unforeseen events
  • Strengthening position while negotiation
  • Aid to avoid dispute in buying and selling transaction
  • Optimum utilization of Financial Leverage for the Business

Documents / Information :-

  1. Historical financial statements for the last five financial years;
  2. Latest interim financial statements;
  3. Most recent budget/projections;
  4. Shareholding Pattern
  5. A list of key members of management and a description of their roles;
  6. A copy of the entities most recent articles of incorporation, operating agreement, bylaws and any shareholder agreements; and
  7. A copy of any recent board materials or company presentations.

Process :-

  1. Engagement and document request
  2. Review of financial statements and company documents
  3. Management interview with key members
  4. Quality control and review by senior members of the Cokaca team
  5. Email Draft Valuation report
  6. Resolve client queries regarding methodologies and approaches utilized in the report
  7. Deliver the final Valuation report

FAQ :-

Why do we need a business valuation?

There are many situations where a complete business valuation would be highly recommended or even legally required. Selling a business, buying a business, considering an acquisition, doing an annual stock appraisal for your ESOP, figuring out gift and estate tax issues, settling partnership issues or shareholder disputes are all reasons to seek professional help in properly valuing your business, among many others.

How long does a business valuation take?

Typically it takes approximately four to six weeks to complete our analysis subject to timely availability of company’s financial and operating data pursuant to our Information Request List and provide to you a complete set of valuation schedules.  A comprehensive valuation report documenting our analysis and conclusions can be provided shortly after that.

What types of value are used in business valuation?

The word “value” by itself is not specific enough when it comes to business valuation. Different standards of value are used, depending on the intended use of the business valuation, and even sometimes the applicable legal jurisdiction. The following standards of value are commonly used to establish the economic value of privately held business interests:

  1. Fair Market Value is usually defined as the price at which a business would change hands between a willing buyer and a willing seller when the former is under no compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts. FMV is used for income and estate tax purposes. In the U.S., FMV is the most widely recognized and used standard of value in business valuations.
  2. Fair Value is a statutory standard, usually used in court cases involving dissenting shareholders, shareholder oppression, divorce and other litigation.  Its definition and application varies by type of case and jurisdiction.
  3. Investment Value is value to a particular buyer or investor, based on their specific investment requirements and expectations, and may consider expected synergies when the businesses are combined. Investment value is often used in mergers and acquisitions.
What is Brand Valuation based on?
  1. Brand Value Evaluation Based on Asset Perspective
  2. Brand Value Evaluation Based on Customer Perspective
  3. Brand Value Evaluation Based on a Comprehensive Perspective
When carrying out a Intangible Asset valuation, which approaches are adopted?

Intangible Business adopts widely accepted approaches based on a combination of the income, market and cost approaches. These approaches have much in common with those used for intangible asset valuation, business valuation, and intellectual property valuation.

The income approach uses estimates of future estimated economic benefits or cash flows and discounts them, for the associated time and risks involved, to a present value.

The market approach uses market based indicators of value. For brands this can be transactions involving selling, buying, franchising or licensing brands, which are often in practice bundled with other deals.

There are two general considerations to the cost approach:

  1. the historic cost of creating the brand; and
  2. the estimated cost and time that would be required to create an equivalent or replacement brand.

What Are The Most Common Multiples Used In Valuation?

Few common valuation multiples which are frequently used in valuation –

  • Enterprise Value to Earnings Before Interest and Tax (EBIT)
  • Price to Cash Flow
  • Enterprise Value to Sales
  • Enterprise Value to Earnings Before Interest Tax and Depreciation (EBITDA)
  • Price Earnings to Growth Ratio
  • Price to Book Value
  • Price Earnings Ratio
Information

Valuation is the process of determining the current worth of an asset or company. Valuing businesses require analyzing a variety of multifaceted aspect including comprehensive technical knowledge of value drivers and in-depth industry knowledge. Valuation is carried out due to the following rationale such as Merger and Acquisition, Licensing, Financial Reporting, Bankruptcy or Reorganization, taxation, Legal, Financing, Securitization, etc.

Our Valuation Services are stated below :-
Financial Valuation Services
  • Business Enterprise Valuation for restructuring / purchase / sale / litigation
  • Stock and Stock Option Valuations
  • Start-Up Company Valuations
  • Portfolio valuations for Private Equity Funds
  • Valuation as required under IND AS
Assets Valuation
  • Tangible Property Valuations
    • Plant & Equipment
    • Real Estate, Land, Buildings and Leases
  • Intangible Property Valuations (Intellectual Property)
    • Trademarks, Trade Names,
    • Brands
    • Goodwill
    • Transfer Pricing
    • Software
    • Non-Compete Agreements
    • Patents
Valuation under Regulatory Compliance
  • Valuation to be done as required by Tax Authorities
  • Valuation to be conducted by registered valuer as per The Companies Act 2013
  • Valuation to be conducted for foreign exchange transaction under FEMA & RBI regulations
  • Obtain True Company value
  • Benchmarking growth
  • Being prepared for unforeseen events
  • Strengthening position while negotiation
  • Aid to avoid dispute in buying and selling transaction
  • Optimum utilization of Financial Leverage for the Business
  1. Historical financial statements for the last five financial years;
  2. Latest interim financial statements;
  3. Most recent budget/projections;
  4. Shareholding Pattern
  5. A list of key members of management and a description of their roles;
  6. A copy of the entities most recent articles of incorporation, operating agreement, bylaws and any shareholder agreements; and
  7. A copy of any recent board materials or company presentations.
  1. Engagement and document request
  2. Review of financial statements and company documents
  3. Management interview with key members
  4. Quality control and review by senior members of the Cokaca team
  5. Email Draft Valuation report
  6. Resolve client queries regarding methodologies and approaches utilized in the report
  7. Deliver the final Valuation report
Why do we need a business valuation?

There are many situations where a complete business valuation would be highly recommended or even legally required. Selling a business, buying a business, considering an acquisition, doing an annual stock appraisal for your ESOP, figuring out gift and estate tax issues, settling partnership issues or shareholder disputes are all reasons to seek professional help in properly valuing your business, among many others.

How long does a business valuation take?

Typically it takes approximately four to six weeks to complete our analysis subject to timely availability of company’s financial and operating data pursuant to our Information Request List and provide to you a complete set of valuation schedules.  A comprehensive valuation report documenting our analysis and conclusions can be provided shortly after that.

What types of value are used in business valuation?

The word “value” by itself is not specific enough when it comes to business valuation. Different standards of value are used, depending on the intended use of the business valuation, and even sometimes the applicable legal jurisdiction. The following standards of value are commonly used to establish the economic value of privately held business interests:

  1. Fair Market Value is usually defined as the price at which a business would change hands between a willing buyer and a willing seller when the former is under no compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts. FMV is used for income and estate tax purposes. In the U.S., FMV is the most widely recognized and used standard of value in business valuations.
  2. Fair Value is a statutory standard, usually used in court cases involving dissenting shareholders, shareholder oppression, divorce and other litigation.  Its definition and application varies by type of case and jurisdiction.
  3. Investment Value is value to a particular buyer or investor, based on their specific investment requirements and expectations, and may consider expected synergies when the businesses are combined. Investment value is often used in mergers and acquisitions.
What is Brand Valuation based on?
  1. Brand Value Evaluation Based on Asset Perspective
  2. Brand Value Evaluation Based on Customer Perspective
  3. Brand Value Evaluation Based on a Comprehensive Perspective
When carrying out a Intangible Asset valuation, which approaches are adopted?

Intangible Business adopts widely accepted approaches based on a combination of the income, market and cost approaches. These approaches have much in common with those used for intangible asset valuation, business valuation, and intellectual property valuation.

The income approach uses estimates of future estimated economic benefits or cash flows and discounts them, for the associated time and risks involved, to a present value.

The market approach uses market based indicators of value. For brands this can be transactions involving selling, buying, franchising or licensing brands, which are often in practice bundled with other deals.

There are two general considerations to the cost approach:

  1. the historic cost of creating the brand; and
  2. the estimated cost and time that would be required to create an equivalent or replacement brand.

What Are The Most Common Multiples Used In Valuation?

Few common valuation multiples which are frequently used in valuation –

  • Enterprise Value to Earnings Before Interest and Tax (EBIT)
  • Price to Cash Flow
  • Enterprise Value to Sales
  • Enterprise Value to Earnings Before Interest Tax and Depreciation (EBITDA)
  • Price Earnings to Growth Ratio
  • Price to Book Value
  • Price Earnings Ratio