Business Valuation Report

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A Business / Company Valuation Report is a formal document that assesses a company’s fair market value at a specific time. This value conside ...

Determine Valuation of the Business

Financial Modeling of business

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Business Valuation Report

  • Share financial information

    Customer shares company’s financial data

  • Value is calculated

    Valuer calculates enterprise valuation

  • Valuation Report is issued

    Merchant Banker issues signed report

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Share financial information

Customer shares company’s financial data

discussion
Arrow pointing to next blockArrow pointing to next block

Value is calculated

Valuer calculates enterprise valuation

customize-draft

Valuation Report is issued

Merchant Banker issues signed report

Contents of Report

  • overview

    Overview

    The name and registration number of the Merchant Banker and details of the company requesting for Business Valuation Report

  • scope-of-work

    Scope of Work

    Outlines the specific shares being valued, along with any limitations or restrictions on the valuation process.

  • methodology

    Methodology

    Details about the approaches and methods used to determine the value of the share.

  • market-analysis

    Market Analysis

    Information about the relevant market conditions, trends, and factors that may impact the value of the share.

  • valuation-results

    Valuation Results

    The final estimated value of the asset, along with any supporting calculations or analyses.

  • valuer-declaration

    Merchant Banker's Declaration

    A statement by the Merchant Banker confirming that the report has been prepared in accordance with relevant laws and standards.

  • signature-and-stamp

    Signature and Stamp

    The report is signed by the Merchant Banker, along with their official stamp or seal.

Benefits of Business Valuation Report

  • credibility

    Credibility

    The report is prepared by a Merchant Banker/Registered Valuer/CA which lends credibility to the valuation process and assurance to stakeholders.

  • regulatory-compliance

    Regulatory Compliance

    Business Valuation Report ensures compliance with the provisions of the Income Tax Act, SEBI regulations and RBI guidelines.

  • assessment

    Objective and Unbiased Assessment

    It provides an impartial and unbiased valuation, free from any conflicts of interest.

  • risk-mitigation

    Risk Mitigation

    Business Valuation Report helps mitigate the risk of disputes or disagreements related to the value of the asset.

  • reporting-and-accounting

    Financial Reporting and Accounting

    Premium per share as mentioned in the Valuation Report is used for financial reporting purposes as per accounting standards compliance.

  • accountability-and-ethics

    Professional Accountability and Ethics

    The preparation of a Business Valuation Report demonstrates adherence to these standards, which enhances trust and confidence in the valuation.

  • methodology

    Documentation of Methodology and Assumptions

    Transparency in method, approach, and assumptions helps stakeholders understand how the value was determined.

Documents Required for Business/Company Valuation

  • statement

    Financial Information

    Last 3-5 years of financial statements (balance sheet, income statement, cash flow statement)

  • tax planning

    Tax Information

    Last 2-3 years of tax returns (depending on purpose, e.g., SBA loan) and Owner's personal tax returns (for pass-through entities like LLCs)

  • Ownership Rights

    Intangible Assets

    List of intellectual property (patents, copyrights, trademarks, etc.) and Goodwill

  • Increase Valuation

    Business Growth Projections

    Forecasts for future balance sheets and income statements

  • reports

    Company Formation Documents

    Business plan outlining strategic direction. Articles of incorporation or organization and bylaws

  • cost-effective_15171193

    Cash Flow Adjustments

    Owner's discretionary earnings (personal expenses run through the business)

  • gallery

    Photos of facilities and equipment

  • checklist

    Recent equipment appraisals (if available)

  • Legal Enforcement

    Details of any legal issues, financial concerns, or ownership complexities

  • leasehold_14597212

    Current lease agreement or real estate appraisal (if applicable)

  • statement

    Information on prior business transactions

Deliverables

  • valuation-results

    Determine Enterprise Valuation

  • description_black_24dp

    Issue of Valuation Report signed and stamped

Frequently asked Questions

What is a Business Valuation Report?

Close

A Business Valuation Report is a formal document that estimates the fair market value of a company at a specific point in time. This value considers not just the company’s current financial state (assets and liabilities) but also its potential for future growth.

What information does a Business Valuation Report include

Close

The report goes beyond a simple valuation figure. It typically details the valuation methods used (market multiples, discounted cash flow analysis, etc.), analyzes key factors influencing value (financial performance, industry trends, etc.), and presents a final estimated fair market value of the company.

How does a Business Valuation Report determine a company's value?

Close

The report employs various methods like market multiples (comparing the company to similar businesses) or discounted cash flow analysis (projecting future cash flows and discounting them to present value).

What is the EBITDA valuation method?

Close

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a common metric used in business valuation, particularly for the Income Approach. It represents a company’s operating profitability. By multiplying the EBITDA by a multiple based on industry averages or recent transactions of similar businesses (EBITDA multiple), you get a valuation estimate. However, this is a simplification, and a full valuation would consider other factors like future growth prospects.

How to value a private company?

Close

Valuing private companies can be more challenging than public companies because there’s less readily available market data. However, the same valuation methods (Income, Market, Asset) can be applied with some adjustments

When do you need a business valuation report?

Close

Consider a valuation report before any major transaction (buying/selling a business), for fundraising, estate planning, or resolving disputes with partners.

What is the validity period of a valuation?

Close

A valuation is like a financial snapshot at a specific date. Its accuracy generally holds for about a year, assuming no major changes in your business or the market.

Why do I need a professional valuation if I have an idea of my business worth?

Close

A professional valuation provides credibility and defensibility for your estimated worth. It uses recognized methods and considers factors you might miss, strengthening your position in negotiations or financial reporting.

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Reviews

4.8

4.8


  • Rahul Kapoor

    ezyLegal's business valuation report was instrumental in helping us identify opportunities for growth and expansion. The insights provided us with a clear understanding of our company's strengths and weaknesses, enabling us to capitalize on our competitive advantages and address areas of improvement. I'm grateful for ezyLegal's expertise and dedication to helping businesses like ours succeed. With their support, I'm confident that we'll achieve our growth objectives and create long-term value for our stakeholders.
  • Neha Sharma

    ezyLegal's business valuation report provided us with a forward-thinking perspective on our company's value and potential for growth. The insights offered valuable guidance on strategic planning, investment allocation, and risk management, positioning us for success in an increasingly competitive market. I appreciate ezyLegal's commitment to delivering insightful analysis and strategic guidance that drive business growth. With their support, I'm confident that we'll continue to innovate, grow, and achieve our goals.
  • Rohit Verma

    ezyLegal's business valuation report was a valuable asset in our strategic planning process. The insights provided us with a clear understanding of our company's value and performance relative to industry benchmarks, enabling us to identify opportunities for growth and improvement. I'm grateful for ezyLegal's support and expertise, which have empowered us to make informed decisions about our business's future. With their guidance, I'm confident that we'll continue to thrive and succeed in the market.
  • Priya Singhania

    Trust is essential when it comes to business valuation, and ezyLegal has earned my complete trust with their impeccable service. The business valuation report they provided was not only accurate and reliable but also delivered with transparency and integrity. I appreciate ezyLegal's commitment to providing honest and trustworthy information that we can rely on to make important financial decisions. I wouldn't hesitate to recommend their services to any business in need of reliable valuation solutions.
  • Alok Gupta

    ezyLegal's business valuation report provided us with a wealth of information about our company's worth and financial health. The report was comprehensive, covering all aspects of our operations, assets, and liabilities. The insights offered valuable guidance on strategic planning, investment decisions, and exit strategies. I'm grateful for ezyLegal's expertise and dedication to helping businesses like ours succeed. With their support, I'm confident that we'll achieve our financial goals and maximize shareholder value.

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