How much does a business valuation cost in India?

The cost depends on the complexity of your business and the purpose of the report. My Valuation offers professional, institutional-quality services at a price point suited to startups and SMEs.

Who is authorized to sign a business valuation report?

In India, only an IBBI Registered Valuer (SFA) can sign valuation reports for statutory purposes under the Companies Act and IBC.

How long does it take to get a valuation report?

We typically deliver preliminary drafts within 5 to 7 business days of receiving all financial data and management inputs.

Do I need a valuation if my startup has no revenue?

Yes. Investors need a valuation to determine equity for their capital, and a registered valuer report is required to justify the share price to Income Tax authorities.

Can I use your valuation report to get a bank loan?

Yes. Our reports are credible and defensible, allowing lenders to accept business assets or IP as collateral for secured financing.

What documents do I need to provide for a valuation?

Generally, audited financial statements, provisional figures for the current year, and future projections (P&L and Balance Sheet).

What is the best method to value a business?

There is no single best method. We typically use a weighted average of DCF for future potential and Market Multiples for industry benchmarking.

How long is a valuation report valid for?

A report is valid for the specific valuation date stated in it. For regulatory filings, reports are generally valid for six months from issuance, provided no significant business changes occur.

Do you help with questions from the auditor or tax officer?

Yes. We provide post-delivery support to answer technical queries raised by your auditors or tax authorities regarding our assumptions.

Is the initial consultation free?

Yes. We offer a free initial consultation to understand your needs and explain our scope of work before any commitment.

Purchase Price Allocation (PPA) Valuation Services

When one company acquires another, the purchase price rarely equals the book value of net assets. Purchase Price Allocation (PPA) is the process of distributing that acquisition price across all identifiable assets and liabilities at their fair values as at the acquisition date.

PPA is not just an accounting formality. It determines how goodwill is recognised, how intangible assets appear on the balance sheet, and how future depreciation and amortisation are computed. A precise PPA protects your financial statements and ensures compliance with applicable Indian Accounting Standards.

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Certified Business Valuation Experts

Mergers & Acquisitions Support

Income Tax Compliance Support

End to End Advisory Support

India's Ind AS 103 Specialist for Purchase Price Allocation

Most PPA valuation providers in India apply IFRS or US GAAP frameworks. We anchor every PPA engagement in Ind AS 103, 38, 36 and 12, the standards your auditors and the NCLT will ask about. Our reports are prepared by an IBBI registered valuer and are accepted by Big-Four auditors across business combination assignments.

Breaking Down Purchase Price Allocation

The acquirer measures assets and liabilities at fair value. The difference is goodwill or a bargain purchase gain.

Tangible Assets

Property, plant and equipment, inventory and receivables are recorded at fair value, which may differ significantly from their carrying amounts in the acquiree's books.

Financial Assets

Investments, derivatives and outstanding loans are measured at fair value, accounting for credit risk and market conditions at the acquisition date to ensure accurate financial reporting and transparency.

Identifiable Intangible Assets

Brands, customer relationships, technology and licences that are separable or arise from contractual rights are identified and valued separately under Ind AS 38.

Contingent Liabilities

Legal claims, warranties and unresolved disputes of the acquiree are recognised at fair value even where the probability of payment remains uncertain.

Deferred Tax Items

Deferred tax assets and liabilities arise from the difference between fair values assigned in the PPA and the tax base of each acquired asset or liability under Ind AS 12.

Situations That Trigger a PPA Exercise

PPA is mandatory under Ind AS 103 for every business combination. Common scenarios include:

Acquisition of a Controlling Stake

Any acquisition that results in control over another entity triggers a full PPA under Ind AS 103, regardless of deal size.

Merger or Amalgamation

Mergers and amalgamations under the Companies Act 2013 or approved by the NCLT require PPA where Ind AS is applicable.

Business Unit or Division Acquisition

When a specific business unit, product line or division is acquired, the consideration must be allocated across the assets and liabilities of that unit.

Cross-Border Acquisitions

Where an Indian entity is the acquirer in a cross-border deal, Ind AS 103 applies and PPA must be completed using fair values as at the acquisition date.

Private Equity and VC-Backed Investments

PE and VC investments that result in control require PPA under Ind AS 103 at the time control is obtained.

Regulatory Framework Governing PPA in India

Ind AS 103: Business Combinations

Defines the acquisition method, recognition and measurement criteria for all identifiable assets and liabilities, goodwill computation, and contingent consideration guidance applicable to every business combination.

Ind AS 36: Impairment of Assets

Ind AS 113: Fair Value Measurement

Ind AS 38: Intangible Assets

Sets the recognition and measurement criteria for intangibles identified during a PPA, including useful-life estimation and impairment indicators.

Ind AS 12: Income Taxes

How We Conduct a PPA: Step by Step

01

Acquisition Review and Asset Inventory

We study transaction documents and deal consideration structure, and list every tangible asset, financial instrument and liability at book value to form the PPA baseline.

02

Intangible Asset Identification

We identify all separable or contractual intangibles that meet the recognition criteria under Ind AS 38, even if not previously recorded on the acquiree's books.

03

Fair Value Assessment Report

We apply appropriate valuation methods including income, cost and market approaches to each identified asset and liability category across the acquired business.

04

Deferred Tax and Goodwill Computation

We calculate deferred tax liabilities on all fair value step-ups per Ind AS 12, then compute the residual consideration as either goodwill or a bargain purchase gain.

05

Disclosure-Ready Report

We prepare a detailed PPA report with workings, assumptions, sensitivity analysis and all disclosures required under Ind AS 103 and Ind AS 38.

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Goodwill vs Bargain Purchase Gain: Key Differences

The outcome of a PPA exercise is either goodwill or a bargain purchase gain. Understanding the difference matters for balance sheet presentation, impairment testing and financial analysis.

	Goodwill	Bargain Purchase Gain
Arises when	Consideration paid exceeds net fair value of identifiable assets	Net fair value of identifiable assets exceeds consideration paid
Balance sheet treatment	Capitalised as intangible asset; not amortised	Recognised immediately in profit and loss as income
Subsequent testing	Annual impairment test under Ind AS 36	No subsequent testing required
Common cause	Synergies, brand premium, strategic value of acquisition	Distress sale, forced liquidation, mis-priced deal
Reassessment required	No; recognised as final once measurement period closes	Yes; Ind AS 103 requires a reassessment before recognition

Your PPA Measurement Period Has Already Started

Completed an acquisition recently? PPA must be filed within the twelve-month measurement period under Ind AS 103. My Valuation delivers audit-ready PPA reports accepted by Big-Four auditors across India.

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Valuation Approaches Used in a PPA Exercise

Income Approach

Estimates fair value using future benefits attributable to the asset. Methods include the Multi-Period Excess Earnings Method (MPEEM) and Relief from Royalty, used for customer relationships, brands and developed technology.

Cost Approach

Estimates the amount required to replace the service capacity of an asset. Used for specialised plant, assembled workforce and internally developed software where market data is limited.

Market Approach

Uses prices from comparable market transactions or guideline companies. Used for real estate, publicly listed securities and some financial instruments where active market data exists.

Identifying Intangible Assets During a PPA

One of the most critical and complex steps in a PPA is identifying intangible assets that were not recorded on the target company's books. Ind AS 38 requires recognition of any intangible that is either separable from the business or arises from contractual or legal rights.

Customer-Related Intangibles

Customer lists, customer relationships and order backlog. These are commonly the highest-value intangibles in service and B2B businesses.
Marketing-Related Intangibles

Trademarks, trade names, internet domain names and non-compete agreements. Brand intangibles are particularly significant in consumer-facing acquisitions.

Technology-Related Intangibles

Patented and unpatented technology, computer software and proprietary databases. Critical in technology, pharmaceutical and SaaS acquisitions.
Contract-Based Intangibles

Licensing agreements, franchise agreements and supply contracts that convey rights or revenue streams to the acquirer. These are particularly common in regulated industries and distribution-heavy businesses.

Deferred Tax Implications in Purchase Price Allocation

Every fair value step-up recorded in a PPA creates a temporary difference between accounting value and tax base. Under Ind AS 12, this results in deferred tax liabilities that must be recognised on acquisition day.

DTL on Property Step-Ups

If land or buildings are fair-valued above book value, a deferred tax liability is created on the step-up amount.

DTA on Contingent Liabilities

Where a contingent liability is recognised in PPA at fair value but is not deductible for tax until paid, a deferred tax asset may arise.

DTL on Intangible Assets

When a previously unrecorded intangible is assigned fair value in a PPA, a deferred tax liability is recognised at the applicable corporate tax rate, which directly increases the goodwill figure.

DTA on Carry-Forwards

Unrecognised deferred tax assets of the acquiree may now be recognisable post-acquisition if the combined entity has sufficient taxable profits.

Common Intangible Assets Valued in a PPA

The table summarises frequently identified intangible assets in Indian PPA engagements, along with valuation method and typical useful life applied.

Intangible Asset	Valuation Method	Typical Useful Life
Customer Relationships	Multi-Period Excess Earnings Method (MPEEM)	5 to 15 years
Trademarks and Trade Names	Relief from Royalty Method	Definite or indefinite life
Developed Technology	Relief from Royalty or Cost Approach	3 to 10 years
Non-Compete Agreements	With-and-Without Method	Contractual term
Order Backlog	Multi-Period Excess Earnings Method	Less than 1 year typically
Distribution Networks	Income Approach (distributor method)	3 to 8 years

How We Approach Every PPA Engagement

Transaction-First Review

We engage with your finance and legal teams early to review transaction documents, earn-outs, contingent consideration and other deal features before any valuation work begins.
Sensitivity Analysis Included

We present detailed sensitivity analysis on key assumptions including discount rates, revenue growth and useful-life estimates, so auditors can verify our conclusions independently.

Complete Asset Register

We build a full asset register covering all tangible, financial and intangible items using structured checklists, so no qualifying intangible is missed before valuation modelling starts.
Disclosure-Ready Format

Our final reports are formatted to support direct use in Ind AS 103 disclosures and notes to financial statements, reducing the documentation burden on your finance team.

Ind AS 113 Compliant Inputs

Our valuations use market-observable inputs wherever available and disclose Level 1, 2 and 3 inputs per the Ind AS 113 hierarchy, satisfying both auditors and regulators.

Who Requires a PPA Valuation

Technology &
SaaS

Pharmaceuticals & Healthcare

Manufacturing
Sector

Financial Services & NBFCs

Private Equity
Portfolio

What's Inside Our PPA Valuation Report

Detailed PPA Report

Valuation of tangible assets, financial instruments, intangibles and contingent liabilities with assumptions and methodology documented per Ind AS 103.

Excel Workings and Models

Asset-wise financial models in Excel with clearly labelled assumptions, input parameters and step-by-step calculations that auditors can follow and verify.

Goodwill Memo

A standalone memo setting out the goodwill calculation or bargain purchase gain analysis, formatted for direct use in board reporting and audit documentation.

Deferred Tax Schedule

A complete deferred tax workings schedule aligned with Ind AS 12, covering all PPA-related temporary differences and their impact on goodwill.

Amortisation Schedule

Useful-life estimates and amortisation schedules for all identified intangibles, ready for input into the acquirer's accounting system post-close.

Disclosure Language

Draft disclosure notes ready for insertion into the financial statements, covering all Ind AS 103 and Ind AS 38 disclosure requirements.

Common PPA Challenges and How We Address Them

Intangibles Not on the Books

The most common audit finding in PPA work. We use structured checklists and industry benchmarks to ensure no qualifying intangible is missed before the valuation is finalised.
Estimating Useful Lives

We use customer attrition data, technology obsolescence curves and contractual evidence to support every useful-life assumption with documented rationale.
Cross-Border Deals

Where the acquiree is a foreign entity, we apply currency conversion and adjust for local market conditions in the fair value assessment.

Contingent Consideration

Where the deal includes earn-outs or milestone payments, we separately value the contingent consideration and help track reassessment at each reporting date per Ind AS 103.
Measurement Period Adjustments

We track new information obtained within twelve months of acquisition and help update the provisional PPA accordingly, keeping the audit trail complete.

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Why Businesses Choose My Valuation for PPA

IBBI Registered Valuer

Led by CA Parth Shah (IBBI Reg. No. IBBI/RV/06/2020/13086, Securities or Financial Assets), our credentials meet standards required by statutory auditors and acquiree boards.

Deep Ind AS Expertise

We understand the interplay between Ind AS 103, 38, 36, 12 and 113, ensuring your PPA is consistent across applicable standards and leaves no disclosure gap.

Audit-Defensible Outputs

Our reports are regularly reviewed by Big-Four auditors and have consistently passed independent audit scrutiny without material adjustments.

Within the Measurement Period

We deliver completed PPA reports within the twelve-month measurement period prescribed by Ind AS 103, so your financial statements are not delayed.

500+ Valuations Completed

My Valuation has completed over 500 valuation assignments across regulatory frameworks, giving our team the depth to handle complex and contested PPA engagements.

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Get Your PPA Report Ready Before the Audit

A Purchase Price Allocation completed accurately and on time protects your financial statements and avoids costly restatements. My Valuation delivers PPA reports that are audit-ready, Ind AS 103 compliant and fully documented.

Frequently Asked Questions (FAQs)

What is Purchase Price Allocation under Ind AS 103?

Ind AS 103 requires the acquirer in a business combination to identify and measure all acquired assets and liabilities at fair value as at the acquisition date. The difference between the total consideration and the net fair value of these identifiable items is recorded as goodwill or a bargain purchase gain.