Business Valuation Services in Sharjah

Business Valuation Services in Sharjah

Finace Consultancy offers business valuation services in Sharjah, services that can help you to estimate the overall value of the organization by analyzing financial data, considering market input, industry standards, and several economic factors. Our estimates and judgments can be benchmarked to international practices. Organizations need precision about the fair value of their assets or business for a variety of reasons. Whatever the purpose, we believe that valuations are fundamentally the process of updating the decisions you make with what is likely your most important financial asset.

Assets, liabilities, income, management, and location are responsible for driving value to a business.

What is a business valuation?

Business valuation is a set of procedures to determine the economic value of a company or its key assets depending on the business model. It includes a detailed analysis of receivables, bonds, loans, historical financial statements, and other debt instruments.

Our approach to Business Valuation:

The key drivers of business valuation are assets, liabilities, income, management, and location. To determine the value of your business, you need to follow any of the business valuation methods. These are also known as business valuation models that help you to understand the worth of your business. Business valuation models include the following approaches:

Asset-based valuation:

To measure the value of the overall business enterprise, all of the underlying business assets are considered after deducting the liabilities.

The asset approach must take into account the economic concept of substitution. This approach often takes into account the costs of developing a company of the same economic feasibility as the one under consideration.

In a sole proprietorship, all assets belong to the owner, and separating assets for the company and personal use can be difficult. This method can be extended to a business, as it will help in the selling of a company.

Business Valuation Methods are as follows:

  • Book Value Method
  • Liquidation Method
  • Replacement Value Method

Market-based valuation:

Identical The value of one’s business is contrasted to that of recently sold businesses. Only when there are a large number of competitors can this technique be used. To assess the business value, the market method employs the economic theory of competition, which considers comparable businesses whose value has recently been developed.

Business Valuation Methods are as follows:

  • Comparative Company Market Multiple Method
  • Comparable Transactions Multiple Method
  • Market Value Methods

Essential Documents Required:

  • Registration and license documents Last 2-5 years
  • Business plans/budget for next 3-7 years
  • Loan documents for key loans
  • Details of major contracts
  • Lease documents
  • Tax returns
  • Inventory reports

Income-based valuation

The ability to produce wealth in the future, according to the Income Method, represents the true worth of a company. The returns are estimated using a single value income or a stream of income that the business owners will earn in the future. Future cash flows are forecasted by looking at historical data and estimating future financial risk. Future cash flows are forecasted using historical data and financial risk predictions. The risks are quantified using capitalization or discount rates.

Business Valuation Methods are as follows:

  • Price to Earnings
  • Discounted Cash Flow Method

How can Business Valuation Services in Sharjah process help your business to grow?

Enhance and Evaluate Business
Business valuation helps you to gain a clear idea of your business. It helps in increasing goodwill and evaluating the present value according to the market conditions.

Mergers and Acquisitions
Knowing the accurate value that your business holds helps you to have an upper hand over other businesses at the time of merger or acquisition.

Magnet for Investors
Business valuation presents the company’s worth; and having a high worth would ultimately attract investors toward your business to a great extent, leveraging the growth opportunities.

Decision-Making Tool
Once you know the value of your business, it will act as a decision-making tool that helps you to take long-term decisions regarding your business development.

Easier Loan Approval
Possessing knowledge about your company’s worth will build trust in the minds of financial institutions and will help you to grab an easy loan from the market for future expansion.

Company Restructuring
Valuation reports contain the core details of company assets and liabilities. They contain the company’s present worth, and ultimately this helps in restructuring the company as and when required.

Frequently Asked Questions on Business Valuation in Sharjah

The business valuation is long, from 60 to 90 days after the service requirement is received from the client along with the sufficient documents.

If a businessman thinks of finding the price of his business, business valuation is the solution. With an equivalent goal, different approaches are followed to value a business. Business Valuation offers a far better understanding of your business’s assets. It helps to structure the audit and accounts processes. It also provides custom solutions to help clients to improve their business performance.

Our price range is purely based on Specific project/Business on valuation, Timeline, Complexity of work, Skills required etc.

The common circumstances under which business valuation is conducted are Merger & acquisition transactions, Business Succession & exit strategy planning, Business acquisition financing, Bankruptcy, solvency, and restructuring.

Do you want to manage your business efficiently and effectively?