Valuation is often used as a starting point in negotiations and plays a critical role in any corporate or financial transaction. A lot of business activities for eg; a sale or acquisition of a business, fund raising, issuing ESOPs, or settling disputes etc., rely on valuation rendering it an essential skill.
At CompaniesNext, we deep dive into the businesses to deliver valuations that go beyond numbers. Our expertise lies in understanding the core business by going an extra mile , applying industry knowledge, analytical rigor, and appropriate valuation methodologies to determine fair and reliable values.
The purpose of valuation is to provide reasonable estimates for both Fair Value (intrinsic value based on fundamentals) and Market Value (relative value based on peer or market benchmarks). This understanding enables decision makers to see both the perspectives with respect to the fair value and the market value (how the market perceives the business) and comes especially handy when dealing with:
Mergers & Acquisitions (Buy-side or Sell-side)
Fund raising (Equity or Debt)
ESOP and Employee Compensation Structuring
Corporate Restructuring
Dispute or Litigation Support
Internal Governance and Shareholder Transactions
The approach followed by us generally follows the following steps:
Analyzing historical financial statements and business segments
Understanding key value drivers and operational dynamics
Conducting peer and industry benchmarking
Reviewing & utilising financial models,scrutinizing assumptions and approving meaningful forecasts
Applying relevant methodologies under Income, Asset, and Market approaches
Using scenario and sensitivity analysis to find the appropriate range as well as testing assumptions
Our proprietary valuation process, combined with deep sector expertise, allows us to provide meaningful insights tailored to each business situation.
We provide independent and professional valuation services that are customized as per client requirements. Our services include::
Valuation of Businesses or Business Undertakings
Equity Valuation (Common, Preference, Redeemable, Convertible Shares)
Valuation of Joint Ventures or Subsidiaries
Valuation of Intangible Assets such as intellectual property, Brand goodwill, new age technological products, Contracts, Know-how
Valuation for M&A, ESOP, Fundraising, or Restructuring
Valuation for Minority or Majority Shareholders for governance or regulatory purposes
Valuation for Litigation or Arbitration Support
Valuation for Debt Instruments (as per FIMMDA or regulatory guidelines)
Complex Instrument Valuation using methods like Backsolve, Option Pricing Models, etc.
Derivatives Valuation using Black-Scholes, Binomial, or Monte Carlo models
Valuation under Indian Regulatory Frameworks – Companies Act, SEBI, FEMA, IBC, Income Tax, etc.
Financial Reporting Valuation under IND AS/IFRS including:
Purchase Price Allocation (PPA)
Fair Value Measurement (IND AS 113)
Impairment Testing (IND AS 36)
Valuation of Financial Instruments (IND AS 109, 32, 107)
Extensive experience with closely held companies and private transactions
Deep sectoral knowledge and industry-specific benchmarking
Use of globally accepted methodologies and modern modelling techniques
Objective, independent, and defensible valuation reports
Compliant with Indian and international regulatory frameworks
Focused on creating long-term value through strategic insight
📩 Connect with CompaniesNext to understand your business’s true worth and make informed, value-driven decisions.
1. What is business valuation and why is it important?
Business valuation is the process of determining the economic value of a company or business unit. It is critical for transactions like M&A, fundraising, ESOPs, dispute resolution, restructuring, and internal decision-making.
2. When should I get my business valued?
Valuation is typically needed during mergers or acquisitions, capital raising, issuing or buying back shares, issuing ESOPs, company restructuring, shareholder disputes, or financial reporting under regulatory requirements.
3. What methods are used for business valuation?
We use a combination of Income (Discounted Cash Flow), Market (Comparable Company/Transaction), and Asset-based approaches, depending on the nature and context of the business.
4. What’s the difference between Fair Value and Market Value?
Fair Value reflects the intrinsic worth of a business based on its fundamentals and future potential, while Market Value also includes the perception of market participants for the company which is one of the reasons for the difference between the Fair value and Market value..
5. Do you provide valuation for startups and early-stage businesses?
Yes, we regularly value startups using methods such as the Venture Capital Method, Backsolve, and Option Pricing Models—considering growth potential, risk factors, and investor preferences.
6. Can you help with valuation for regulatory compliance?
Absolutely. We offer valuations in line with Indian regulatory frameworks including the Companies Act, SEBI, FEMA, IBC, and Income Tax laws, as well as financial reporting standards under IND AS/IFRS.
7. What types of assets can you value besides businesses?
We also value intangible assets (brands, technology, contracts, patents, goodwill), financial instruments (convertible securities, derivatives), and equity (common, preference, redeemable shares), among others.
8. How do you ensure accuracy and objectivity in valuation?
Our valuations are based on thorough financial analysis, peer benchmarking, scenario testing, and use of globally accepted models—producing independent, defensible, and audit-ready reports.
9. Can you assist in litigation or dispute-related valuation matters?
Yes, we provide valuation support for shareholder disputes, arbitration, and litigation cases, delivering expert reports and opinions that can be used in legal proceedings.
10. Why should I choose CompaniesNext for business valuation?
We bring deep industry expertise, regulatory knowledge, and a strategic lens to every valuation and an optimal mix of experienced and dynamic team. Our approach goes beyond numbers—offering insights that help you make confident, value-driven decisions.
