Valuation of the Company for Acquisition | Noida, Delhi, Gurgaon, India | Especia Associates LLP

Valuation of the Company for Acquisition
Introduction:
There are a number of situation in which a business or a share or any other property may be required to be valued, similarly while acquiring business it is important to do valuation. Valuation gives a theoretical value and it is essential to fix the value or consideration payable for an acquisition. It helps to conclude a transaction in a reasonable manner without any room for any doubt.
Valuation Standards & Principles:
The registered valuer shall, while conducting a valuation, comply with the following:
valuation Standards:
internationally accepted valuation standards;
valuation standards adopted by any registered valuers organisation
valuation Principles:
Based on expectations
Based on future cash flows
Based on tangible capital assets
Factor should be consider while doing valuation:
Purpose of valuation.
Stock exchange prices of the shares of the two companies.
The dividend paid on the shares.
Relevant growth aspects.
Value of the net asset.
Quality and integrity of the management.
Present and Prospective competition.
Market sentiments.
Future earning potential.
Analysis of business history.
Goodwill/Brand name in the market.
Identifying economic factors directly effecting business.
Study of exchange risk involved.


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