A company is an aggregate of assets, liabilities, investments, securities, etc. Each of these aspects has an inherent value, and if combined, it produces the total worth of the entity. Figuring out the valuation of a company is beneficial for a wealth of reasons. For a start-up, it can showcase the venture's strength in the industry, its foundation and can be instrumental in tax consulting. In mid-sized organisations, valuation can aid in growth funding, capacity expansion, inviting partnerships and other such areas. In matured businesses, valuation is mainly done for diversification, revitalization or exit planning. Thus, valuation has a role in all stages of an organisation's growth.
Financial activities begin as soon as a venture is established in the market. The bookkeepers maintain the daily record of transactions. Accountants assess the output and prepare financial statements, viz. Income statement, balance sheet and cash flow statement. It is mandatory to follow international accounting standards while formulating accounts in order to represent authentic financial information. A company can land in significant trouble if its reports have financial or legal discrepancies.
The audit is the process of diagnosing the financial records of the company in order to check their accuracy and adherence to tax and compliance norms. It finds out if there are any false entries or misuse of funds. There are various types of auditing performed by internal as well as external auditors with different objectives.
It is the true value of an asset calculated on the basis of fundamentals like the asset's future growth prospects, market price and cost to replace it. It aims to satisfy both parties.
It stands for the actual value of the asset in the market. It depends on the demand and supply forces in the market and fluctuates frequently. If the fair/intrinsic value is higher than the market value, the asset is considered overvalued. During the valuation process, all the aspects of a business are analysed to project its fair worth. Two models are prominently used for assessing the value of a company.
This model aims to measure the intrinsic value of a venture by analysing its fundamental aspects only. The list of fundamentals includes cash flow, dividends and growth rate.
Under the relative valuation model, the target company is compared with other similar companies. One company's multiples and ratios are weighed against those of similar companies to determine if the original venture is over or undervalued. There are several methods to evaluate the worth of a company, for instance, comparable, discounted cash flow, dividend discount, asset-based and precedent transaction techniques. However, there is no black-and-white answer as to which method can be used to calculate the value of a given company. Different mechanisms can produce different values of the same organisation. Hence, it is a subjective area that requires knowledge of market economics and expert skills.
Poshway Consultants and Co. constitute a team of experts who can objectively evaluate your business and ensure high accuracy standards. We understand the market dynamics and imbibe expert knowledge and competencies to analyse assets, liabilities, stocks and other aspects of your business to project a fair valuation. We evaluate tangible assets (e.g. real estate and fixed assets), intangible assets (e.g. trade names, intellectual property) and investments. Our valuation services, accompanied by expert advisory, can guide you in planning for merger, acquisition, partnership, taxation, sale and divorce proceedings.
Our qualified officials are proficient in generating fairness opinion reports to aid the management in deliberating a purchase or sale transaction. Recently, there has been a move towards fair value accounting which has made financial reporting more complex. The reason is that the market value of a few types of assets and liabilities cannot be easily measured and may require assumptions leading to questions of validity. By leveraging sophisticated methods and advanced technology, we solve critical valuation problems and arrive at objective results.
Our services aim at directing you towards the most profitable sales and purchase decisions while complying with the regulatory norms. We also assist you in risk identification and management during the process.
Expert analysis and comprehensive assessments for accurate and reliable valuations across diverse asset classes.
Accurate assessment of the worth of your business, enabling informed decision-making and strategic planning.
Expert evaluation of intricate financial instruments, ensuring accurate pricing and risk assessment.
Thorough assessment of physical assets to determine their fair market value and optimize asset management.
Precise valuation of intangible assets, such as intellectual property and brand value, for strategic decision-making.
Expert analysis to determine the fair value of equity-based compensation plans, aligning with accounting and regulatory standards.
Comprehensive appraisal of real estate, providing reliable valuations for investment, financing, or financial reporting purposes.
Accurate assessment and allocation of the purchase price in business acquisitions, ensuring compliance with accounting regulations.
Rigorous evaluation of asset impairment to determine if their carrying value exceeds recoverable amount, complying with accounting standards.
Valuation determines the worth of a company or an asset. It is an extended process of analysing all the areas of a business, identifying best-suited methods of calculation and forecasting potential based on market knowledge. It also involves taxation matters and adherence to regulations. The purpose behind a valuation can differ during various stages of a company's growth.
Poshway's dedicated team of experts can conduct an independent, impartial and objective valuation of a company to aid you in making better decisions and ensure efficient transactions.
Seeking assistance with valuation services? Our skilled team provides expert guidance and meticulous analysis to determine accurate and reliable valuations for your assets, businesses, or financial instruments.
