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VBV | May 20, 2022 11:32 am

Everything You Need to Know About Business Valuation

Business valuation is a formal process of estimating the value of a business. It depends on the professional judgment of an analyst who considers the nature of the business, its financial performance, local and national economic conditions, values ​​of assets and associated liabilities, and any unique knowledge or technology owned.

VBV & Associates, the leading Valuation Consultants in Kochi, Kerala offers the best Business Valuation Service which will assist you in determining your company’s economic value. We also provide a complete financial solution for local and worldwide businesses of all sizes, including audit and assurance, tax and regulatory, financial advising, consultant services, company registration, NRI Services, and a lot more.

Why Your Business Needs a Valuation

Knowing the true value of your business is important for several reasons. You need to know the value of any business you are considering buying or selling, but you need to evaluate whether to borrow money, acquire a partner, develop an estate plan, update or gift shares of the company.

  • To Inform Decision Making
  • Exit Strategy Planning/Selling a Business
  • Capital Raising
  • Trust/Estate Planning
  • Granting Stock Options
  • Shareholder Transfers/Partnership Change/Buy-Sell Agreements
  • Litigation
  • Strategize for Future Acquisitions

What are The Methods of Business Valuation?

The main three ways to value a company

Market-Based Approach

The willingness of others to pay for similar enterprises determines a company’s value. This number is calculated using comparable transactions.

Income-Based Approach

The ability to make money determines a company’s worth. Examines past performance, forecasts future monetization, and subtracts present value.

Asset-Based Approach

A company’s value is derived from its assets minus its liabilities. If the intellectual property is unusually valuable or in liquidation, this approach is most appropriate.

It is important to remember that you are not alone when it comes to business valuation. VBV & Associates offers efficient business valuation services. We achieve this by knowing about your company, industry, and market conditions.

For more information, please contact us at vbvassoc@gmail.com or call +91 980 901 2123.