Acquisitions have always been an important part of the financial landscape and often seen as a strategy for business growth.. At CompaniesNext, we help you determine the true value of shares, businesses, or assets being acquired, ensuring your transaction is fair, compliant, and strategically sound.
Our acquisition valuation uphold the tests of integrity and precision while adhering to all the mandatory legal requirements, increasing credibility and confidence throughout the deal process.
When acquiring shares in a listed company, compliance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, is mandatory. Acquisition triggers depend on thresholds crossed or changes in control, often requiring an exit opportunity to public shareholders. Valuations under SEBI depend on share liquidity:
Frequently Traded Shares: Valued based on the volume-weighted average price over the 60 trading days before the public announcement.
Infrequently Traded Shares: Valued considering book value, comparable multiples, and other accepted parameters agreed upon by acquirer and open offer manager.
Unlisted company share acquisitions follow Section 56(2)(x) read with Rule 11UA(1)(c) of the Income Tax Rules, 1962, which prescribe:
Quoted Shares: Market price on recognized stock exchanges.
Unquoted Equity Shares: Adjusted Net Asset Value (NAV), requiring fair valuation of land, buildings, jewellery, shares, and other assets — a detailed process especially for investment companies.
Unquoted Non-Equity Shares: Market price or any substantiated valuation method.
We provide comprehensive valuation support for:
Share acquisitions (listed and unlisted companies)
Business or asset acquisitions
Compliance with SEBI Takeover Code and Income Tax valuation requirements
Fair price determination for open offers and regulatory filings
Detailed valuation reports supporting negotiations and approvals
Before finalizing share or asset purchase agreements
For compliance with takeover and tax regulations
To ensure fair price for minority shareholders and public investors
During due diligence and transaction structuring
For strategic decision-making and financing arrangements
Deep expertise in regulatory frameworks and valuation methodologies
Tailored valuation approaches for listed, unlisted, and complex securities
Robust, defensible reports for audit, legal, and stakeholder assurance
Proven track record in cross-border and domestic acquisitions
📩 Planning an acquisition? Reach out to CompaniesNext for trusted valuation advice that supports your deal from start to finish.
1. What is acquisition valuation?
Acquisition valuation determines the fair value of shares, businesses, or assets being acquired to ensure informed decision-making, regulatory compliance, and fair pricing for all stakeholders.
2. When do I need an acquisition valuation?
You need a valuation before finalizing share or asset purchase agreements, during due diligence, for regulatory filings (SEBI, Income Tax), or when ensuring fair pricing for public or minority shareholders.
3. What regulations apply to acquisitions in India?
For listed companies, the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, apply. For unlisted companies, the Income Tax Act (Section 56(2)(x) and Rule 11UA) governs valuation.
4. How are frequently traded shares valued under SEBI guidelines?
They are valued based on the volume-weighted average market price over the 60 trading days preceding the public announcement of the acquisition.
5. How are infrequently traded shares valued under SEBI rules?
Valuation considers book value, financial ratios, peer comparisons, and other accepted methods agreed upon by the acquirer and open offer manager.
6. How are unlisted shares valued under Income Tax law?
For unquoted equity shares, the valuation follows the Adjusted Net Asset Value (NAV) method, which includes fair valuation of all major assets like real estate, securities, and other holdings.
7. What valuation methods do you use?
We apply appropriate methods based on the asset type and regulatory requirements—such as DCF, NAV, market comparables, and rule-based formulas as defined by SEBI or Income Tax laws.
8. Do you provide valuations for cross-border acquisitions?
Yes, we have expertise in both domestic and international transactions, ensuring compliance with Indian regulations and alignment with global best practices.
9. How does CompaniesNext ensure valuation accuracy and compliance?
We follow industry standards, stay up-to-date with regulatory changes, and prepare defensible reports tailored to audit, legal, and stakeholder requirements.
10. What do your acquisition valuation services include?
Our services cover valuation of shares (listed and unlisted), businesses, and assets; compliance with SEBI and Income Tax rules; preparation of fair price for open offers; and detailed reports for negotiations, approvals, and filings.
