In a competitive and fast-evolving market, inorganic growth through mergers and acquisitions (M&A) has become a quick and efficient way for companies looking to scale, diversify, or strengthen their position.
At CompaniesNext, we provide expert valuation services for mergers, demergers, and corporate restructurings—ensuring compliance, fairness, and value creation for all stakeholders.
When two or more companies come together, whether through a cash based deal where the acquirer pays the target in cash, deeming valuation important to find the target’s value or through a stock for stock deal where it is essential to determine the relative value of their shares as the transaction will be carried out by exchanging shares. This forms the basis for the Equity Share Swap Ratio—a critical element in any amalgamation.
A well-structured valuation ensures:
Protecting the interest of all shareholders
Clear and well reasoned swap ratios
Compliance with regulatory requirements
Valuation in compliance with all regulatory norms for smooth auditor approval
As the phrase goes “Sum of all parts is greater than whole”, similarly sometimes companies get more benefit out of demerging some of their business lines or demerging some not profitable segments for better profitability and efficiency. This often improves management, transparency and profitability..
In such cases, we help derive the Share Entitlement Ratio, reflecting the absolute value of each business being spun off.
We offer comprehensive valuation and advisory services for:
Merger Valuations
Demerger Valuations
Share Swap Ratio Determination
Fairness Opinions
Valuation Reports as per Companies Act, SEBI, and FEMA
Valuation for Cross-Border Mergers and Foreign Entities
We ensure that all valuations comply with:
Companies Act, 2013 and related rules
SEBI (LODR) Regulations & Circulars for listed entities
FEMA regulations for transactions involving foreign companies
Reporting by IBBI Registered Valuers, as mandated
Our team understands the sensitivities involved in business combinations and works closely with management, legal advisors, and auditors to ensure smooth execution.
Deep experience in M&A and corporate restructuring
Strong understanding of valuation, accounting, and regulatory frameworks
Trusted by promoters, investors, and legal advisors
Independent and defensible valuation reports
📩 Planning a merger or demerger?
Let CompaniesNext support you with accurate valuation and expert guidance at every step.
What is a swap ratio?
The swap ratio is the rate at which shares of the merging companies are exchanged during a merger.
How is the swap ratio determined?
It is based on the relative valuations of the merging companies using financial and market data.
Why is accurate merger valuation important?
To ensure fairness, regulatory compliance, and avoid disputes among shareholders.
Which valuation methods are used?
Income approach, market approach, and net asset value method are commonly used.
How long does the merger valuation process take?
Typically 4 to 6 weeks, depending on data availability and complexity.
Do you assist with regulatory approvals?
Yes, we prepare reports to meet SEBI and Companies Act requirements.
Can you advise on post-merger integration valuation?
Yes, we provide insights into synergy realization and asset revaluation post-merger.
Is confidentiality maintained?
Absolutely, we adhere to strict data privacy and confidentiality protocols.
Are your valuations accepted by auditors?
Yes, our reports comply with all relevant accounting and regulatory standards.
Can you help with cross-border merger valuations?
Yes, we have experience with domestic and international merger valuations.
