Business Valuation Company in Bangalore

Needless to say about Bangalore’s business landscape, we all know at which speed businesses in Bangalore grow. In the rapidly growing market, any business must be well informed about the worth their business carries. Several firms provide business valuation services in Bangalore that help businesses to find their true value.

Running a business in India’s IT hub, business owners need to know the true value of their business. It allows you to get to know the overall business health. Business valuation analyzes factors beyond direct financial metrics and helps you understand the financial structure and the company’s inner workflows.

My Valuation- holding its place in one of the top valuation firms in Bangalore, offers across-the-board business valuation services. Browse our services below.

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When Your Business Needs Valuation?

Whether you’re planning to sell your business, attract investors, or navigate a partnership dissolution, understanding your company’s fair market value is essential. A valuation can also be helpful for strategic planning purposes, ensuring your financial records accurately reflect your business’s worth. My Valuation has a team of valuation experts to ensure you get the right value for your business with unbiased market data.

Top-Most Business Valuation Firm in Bangalore

Our Business Valuation Services

We are an IBBI-registered valuer, providing businesses with the following business valuation services:

Business Valuation For Fundraising Company Valuation For Private Placement
Balance Score Card Method Under Startup Valuation Venture Capital Method Under Startup Valuation
Risk Factor Summation Method Under Startup Valuation Company Valuation For Rights Issue
Company Valuation For Debt Reconstruction Brand & Intangibles Business Valuation
Business Valuation For Financing & Strategic Management Business Valuation For Litigation & Dispute Resolution
Business Valuation During Mergers & Acquisitions Valuation for Legal And Compliance Needs
Valuation For Financial Reporting Purposes Valuation As Per Ind AS Requirements
ESOP Valuation and Provisioning Bankruptcy
Buy-Sell Agreements Economic Loss
Estate & Exit Planning Goodwill Determination
Succession Planning

Top Business Valuation Methods We Use

We, at My Valuation, ensure to bring the right values in front of business owners using the appropriate valuation methods. A few of the methods that we use are:

 

Discounted Cash Flow (DCF) Price Earning Capacity Value (PECV)
Book Value Market Capitalization
Market Value Adjusted Net Asset Method
Comparable Multiple Method (CMM) Comparable Transaction Method (CTM)
Price of Recent Investment Method (PORI) Guideline Transaction Method
Capitalization Past Earnings Earnings Multiplier
Financial Transaction Revenue Multiple
Depreciated Value Liquidation Value
ROI Based Valuation Capital Financing
Going Concern Value Replacement Value
Balance Scorecard Valuation Technique Venture Capital Method
Risk Factor Summation Method

Key Benefits of Business Valuation

Business valuation, in many ways, helps business owners make important decisions by accurate valuation data on their side. Here are the benefits offered by company valuation.

  • Understanding Business Performance– A valuation process involves a deep examination of a company’s financial health, assets, and market position. This analysis can provide valuable insights into how the business is performing and identify areas for improvement.
  • Informed Sale or Purchase Decisions– If you’re considering selling your business or acquiring another one, a valuation helps ensure you’re negotiating a fair price. It establishes a benchmark for what the business is truly worth based on market data and financial performance.
  • Securing Investment– A valuation report can be a powerful tool when seeking investment. It demonstrates the company’s value proposition to potential investors and assures them they’re making a sound financial decision.
  • Business Growth Strategies– By understanding your company’s value, you can make more informed strategic decisions about growth. A valuation can highlight areas that will increase the company’s worth, such as expanding into new markets or developing new products.
  • Estate Planning and Partner Disputes– A business valuation can be crucial for estate planning purposes, helping determine the fair market value of the business for inheritance tax purposes. It can also help resolve disputes between business partners, as it provides a neutral assessment of the company’s worth.

What Are Different Approaches of Business Valuation?

With this approach, we compare the subject company to similar businesses recently acquired or publicly traded. We work by assuming a willing buyer and seller agree on a fair market value in an independent transaction. This method works best when there are good comparables available.

Under this approach, valuation is exercised on the basis of the quoted market price of the company in case it is a publicly traded company, or publicly traded comparable businesses data is reviewed in order to identify peer / similar company to the company under valuation exercise and their multiples are applied to the entity being valued to determine the fair value.

Income-based valuation focuses on the company’s future profitability by estimating its potential cash flow generation. The core principle is that a company’s value is based on its ability to create future cash flow for its owners. This method is ideal for businesses with a stable and predictable cash flow stream.

Usually under the Income Based Approach, the methods that may be applied are Discounted Cash Flow (DCF) Method or the Price Earning Capacity Value (PECV) Method.

Under the DCF approach, the future free cash flows of the business are discounted to the valuation date to arrive at the present value of the cash flows of the business or capitalized using a discount rate depending on the capital structure of the company. This approach also takes into account the value of the business in perpetuity by the calculation of terminal value using the exit multiple method or the perpetuity growth method, whichever is appropriate.

This approach prioritizes the value of the company’s underlying assets, both tangible (property, equipment) and intangible (patents, brand name). We often use this method when a company has significant tangible assets or when its future cash flow is uncertain.

Under this approach, the book value / replaceable value / realizable value of the underlying assets of the company is determined to arrive at the value of the business, depending on the facts and circumstances applicable to a company.

As the company is a startup, there are some more additional methods of valuation. Some of the methods are:

  • Balance Score Card Valuation Technique
  • Venture Capital Method
  • Risk Factor summation method

The above methods are acceptable methods of valuation for startup and the methods are based on different concepts and assumptions.

Why Choose My Valuation for Business Valuation Services in Bangalore?

My Valuation is one of the top business valuation services providers in Bangalore.

We offer IBBI-registered valuation services to help businesses and most importantly startups to tackle the complexities of valuation and financial advisory. Our services offer valuation under SEBI, IBC, Companies Act, and Income Tax Act.

My Valuation’s basic fundamental is to transform Indian startups by streamlining the startup valuation process and ensuring that business owners are aware of their startup’s worth. That is why when it comes to valuing a startup, we first understand the circumstances under which the valuation is needed and eliminate the confusion to provide accurate valuation numbers.

Our team of valuation experts serve their expertise in eac case and ensure an accurate outome.

The Regulation of Valuation Services/ Valuers and Appraisers in Bangalore

The startup valuation shall be done as per the provisions of the Companies Act 2013 under section 246, by a registered valuer with immersed experience.

The registered valuers shall conduct a business valuation, valuation standards, and code of conduct. They provide a framework for the regulation of the profession of valuers.

Valuation under the Insolvency and Bankruptcy Code, 2016, the Companies Act 2013 needs to be conducted by a valuer registered with IBBI with effect from 1st February 2019 onwards.

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FAQs and Insights

How do you incorporate intangible assets when performing a valuation analysis?

Intangible assets pose a challenge for business valuation because they’re not easily measured. To approach this, we identify important intangible assets, choose the right method, and implement it.

What is the difference between equity value and enterprise value?

Enterprise value considers the whole company like a buyout- the entire value of a business, while equity value is what shareholders own.

What Should you expect to pay for a business valuation cost?

There is no exact answer to this as business valuation costs vary depending on factors like the complexity of the business, the purpose of valuation, and the expertise of the valuator. You can call us to inquire.

Who should you go to when in need of business valuation?

When in need of business valuation, seek out accredited business valuation firms with experience in your industry. My Valuation possesses expertise in financial analysis, industry knowledge, and valuation methodologies. You can reach out to us for any business valuation queries.

What Expertise you must consider before choosing a valuator?

Before choosing a valuator, consider their qualifications, experience, track record, and familiarity with your industry. Look for certifications such as Certified Valuation Analyst (CVA) or Accredited Senior Appraiser (ASA) and assess their understanding of the specific challenges and dynamics of your business sector. My Valuation is a certified valuation firm in India, offering a complete range of business valuation services.

Why do people choose to pay for business evaluation instead of a free online valuation?

People opt for paid business valuations over free online valuations for accuracy, reliability, and customization. Online tools may offer rough estimates, but they often lack the depth and nuance required for complex businesses or specific circumstances.

Is business valuation for all types of business under various management?

Business valuation is applicable to various business types and management structures, ranging from small family-owned businesses to large corporations with diverse ownership structures.

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