For a M&A transaction, whether acquisition, divestment, Private Equity, Venture Finance, SME IPO, IPO, Joint ventures, Debt raise both domestic & foreign (ECB): the valuation of your business is the primary driver.
Whenever a business embarks upon the route of raising funds or the promoters reach a decision to Sell the business, the most important value add before the commencement of the process is to optimize value of the business. Value of the business is dependent upon many factors such as:
- Profits of the business: This is the primary driver and the most fundamental instrument to create value.
- Revenues of the business: Since this signifies the reach and scale, for industries where scale is important, the revenues play a strong part.
- Customers of the business: If the business is in a high hurdle segment, for market access your customer of many years are the reason for increase in value.
- Technology, IPR & Brand: anything that is unique to your business that helps bring in sales & profits is a driver of value. Therefore ant technology or design that is unique to you, whether patented or not, would increase value. Similar is you own a brand or any IPR like copyright or Trademark, that would give rise to higher value if such brand is driving your sales.
- Your team & management expertise: how well can your business run without you. That is a big reason for better value of your business.
- Unique situations: any method or situation, market dynamic unique to you is a value driver.
Keeping the above in mind, our team is well equipped to give you an accurate estimate of the value of your business and also a recommendation of how raise the valuation of your business.
Request a Free Valuation A good valuation of a business is a great method to:
- Find a good value for Sale of Business: In case you wish to exit a business your have nurtured OR believe that you have brought it up to a level and now cannot grow it further, selling a business could be a good business decision: Know more on how I can Sell my Business
- Find a good value to list your company: through an SME IPO or the main exchanges, if the numbers are at the correct level.
- Raise Debt at a lower raise: Both Indian banks & Foreign Institutions through ECB lend a lower rates for business that are at good valuation rather than stretched valuations.
- Joint Ventures: Here again a good valuation would lead to a better share & control over a Joint Venture business or foreign partner
You can open a discussion with our team for working on your valuation or to make any divestment, Joint Venture or raise Debt by contacting us as below.
