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Business Valuation

Business valuation consists valuation of an entire business, a strategic business unit, a department or a particular store are all. Business valuation in India is a very important aspect in an entrepreneur's journey since this monetary number values the time and effort they have put in to grow the business.

Business Valuation

How Does AKM Global make a comprehensive Company Valuation Model

We at AKM Global believe that the valuation of a company is more of a collaborative effort between our experts and the founders of the company we are doing the exercise for. With the support of the founder, we understand the business model better, which in turn gives us more insight into the operational aspects of the business. This helps us in preparing a better financial model and give inputs to the founder to further better their business model so that it can be investable.

Business Valuation in India on an Entrepreneur of a Start-up

The valuation of a business holds a lot of value for an Entrepreneur since it resembles the effort and time put in by him. The effort, time and the continuity of the business hold value. A business can be valued not only by the above-mentioned parameters, but there are more aspects which impact the value of a company more than just the effort and time put in. A business which has higher market share and is disrupting the traditional methods of the industry will certainly command a higher valuation than the traditional businesses. This is one of the reasons why start-ups are being valued higher than traditional businesses in the industry they are disrupting.

Why are professional services required for Business Valuation of a Start-up?

Valuing a start-up is a tricky ball game altogether. It needs a thorough understanding of the business model, the scalability of the model, the disrupting nature of the start-up and the segment which will be disrupted. All this requires the services of a professional.

Why Choose AKM Global for the Business Valuation of a Start-up?

With our expertise and in collaboration with the founders, we can help the founders understand their business model better and give suggestions to improve both the scalability and the revenue model of the company. This exercise helps create a win-win situation for all concerned stakeholders since there is a clearly defined business model laid out and with the improved and realistic numbers, we can help entrepreneurs negotiate and defend their valuation against potential investors.

Business Valuation in India on an Entrepreneur of an Established Entity/SME?

An established and running business may not be disruptive. It might be emerging, though, as market leaders in their operating segment. With the evolving of tech start-ups, the value of traditional businesses seems to be lacklustre when compared to that of the start-ups. However, with the help of experts and proper guidance, the valuation of a company can be increased so that no undervaluation takes place.

Why Choose AKM Global for Business Valuation of an Established Entity/SME?

With years of experience and an expert team on their roster, AKM is well equipped to value your business and help you grow your business. We are a full service financial firm and can complement the valuation service with fund raising activities, selling your business, buying a business, finding a JV Partner, valuing for regulatory purposes like under the Companies Act, 2013, Foreign Exchange Management Act, 1999, the Income-tax Act, 1961, etc.


What is valuation?

Valuation is the process of ascertaining a fair value of any business, property, antique or any asset. The most common use of business valuation, are for the following purposes –

  • Equity Funding from VC/PE Investors
  • Regulatory Requirement – For e.g., when a company goes for an IPO
  • For Bank funding purposes – In case of unsecured loans, the pledging of equity shares will be required, which needs the shares to be valued
  • When seeking to sell your business (Sell-Side M&A)
  • When seeking to buy a business (Buy-Side M&A)
  • When looking to merger and demerger
  • When adding new shareholders
  • When looking to expand your business

Why you need a business valuation services In India?

Here we need to include importance of business valuation for any company/business into the pointers 100 words

Valuation of a start-up or an established entity helps establish the economic value of the company. There are different methods to evaluate the worth of a company which including researching the book value, market capitalization, discounted cash flow, liquidation value and earning multipliers. Valuation also helps business owners plan for taxation, mergers, acquisitions, sales, funding, gifting, disputes and more.

Value of a company for tax reporting is important for adhering to the country's tax laws.

Business valuation for tax purposes will include divestments, acquisitions, changes in ownership, capital gains, and more.

Is the Valuation of a Company Unique?

The valuation of each company is unique for every business. This uniqueness of valuation of a business is due to various factors such as –

  • Geographical areas of the business
  • Revenue Split between Geographies
  • Economy Size & Growth of the main revenue-generating geography
  • Size of Target Market
  • Size of Industry
  • Market captured by the company
  • Business Model adopted by the Company
  • Is the company disruptive?
  • How scalable is the current business model?

The aforementioned pointers are some factors which affect the valuation of the company.