Business Valuation Services
Business Valuation Services
Aebiaccountax Accounting and Bookkeeping Services LLC provides expert business valuation services in Dubai, UAE, to help you determine the true value of your company. By assessing key factors such as market conditions, assets, liabilities, and management, Aebiaccountax delivers a thorough evaluation to guide your decision-making process and maximize benefits. Our comprehensive and reliable valuation services are available across the UAE, enabling business owners to understand the worth of their businesses and achieve their objectives efficiently and strategically.
Valuation of Business
Business valuation is the process of determining the current worth of a company by analyzing various factors such as its assets, liabilities, income, management, and location. This valuation is crucial not only for the business itself but also for its stakeholders, as it informs key decision-making processes.
Accurately determining a company’s value requires a thorough financial analysis, which should be conducted by a qualified valuation expert with the necessary certifications. Typically, a company’s price is based on its market value. A comprehensive valuation analysis and detailed report by an experienced professional offer substantial advantages that may be overlooked if opting for a cheaper, less thorough valuation. These benefits include securing a better selling price or mitigating financial risks in the event of litigation or other business challenges.
Business Valuation Approaches: -
To accomplish perfection business valuation services, CDA adopts effective tools and strategies. The various approaches we adopt for business valuation in Dubai are mentioned below:
a) Asset-based valuation
The asset-based valuation considers the basic business assets in order to estimate the value of the overall business enterprise. This technique is good for corporations, but it will be challenging if applied to a sole proprietorship, because, since the assets belong to the same owner, it will be difficult to separate the same for personal use and business purposes.
b)Market-based valuation
Under the Market-based valuation, the marketplace is considered for the business value. It compares the value of one’s business to another similar business which is sold recently.
c) Income-based valuation
The Income-based valuation method is based on the economic principle of expectation to determine the value of a business, i.e. the real value of a business lies in building wealth for the future. Based on this fact, an evaluator ascertains the upcoming cash flow by examining the records and also assesses the upcoming financial risk.
All these approaches may bring different estimates of value for the same asset at the same time. If you want to know the real estimate, you have to use all these approaches to reach a final conclusion.
How Business Valuation Process Helps your Business Grow?
Getting the right business valuation process can help your business grow in several ways achieving maximum profitability.
a) Improves the goodwill
Conducting a proper business valuation provides you with a clear picture of your business. It will help you increase the goodwill and assess the current value of your business according to the market environments.
b) Provides an upper hand over other business
Getting the exact value of your business helps you to have an upper-hand over other business at the time of merger or acquisition.
c) Attracts the investors
Business valuation shows the company’s value. A high value would eventually attract investors towards your business to a great extent and leverage the growth openings of your business.
d) Help take long term decisions
The value of your business will act as a decision-making tool, and it will help you make long-term decisions concerning your business expansion.
e) Helps company restructuring
The current valuation report provides the fundamental details of the company’s assets and liabilities. This will help you take the decision to restructure the company as and when required.
e) Helps to build trust
Your company’s high value will help you build trust in the minds of the financial institutions and it will be easy for you to get loans from the market for future expansion.
Various Situations that Lead to the Valuation of Businesses
A Businesses valuation is done based on various reasons, of which some of the common reasons are discussed below: –
a) Funding or financing
An objective of your business will help you raise funds for your business while negotiating with banks.
b) Goodwill impairment
Goodwill impairment happens when the purchase value is greater than its implied fair value. A goodwill valuation will help you understand the impairment loss of the business.
c) Buy or sell contracts
A business valuation will make sure that you reach the right decision on whether to sell your business or grow your business through acquisition.
d) Mergers or purchases
At the time of buying or merging with another company, a business valuation will help you determine if the price you have to pay is a fair one or not.
e) Litigation and ownership disputes
If there is a court case against the value of the business, it will be settled by the court based on the valuation of the business.
f) Shareholder oppression cases
An independent valuation of the business is required for a fair settlement of ownership issues once any one of the owners decides to quit.
How we help?
Aebiaccountax follows a comprehensive approach to business valuation, considering various essential actions and factors. Here are the general procedures we implement during the valuation process:
- Understand the purpose of the valuation.
- Review historical and forecasted data, ensuring all relevant financial information is covered.
- Analyze balance sheets, income statements, and cash flows to assess financial health.
- Meet with management to discuss the company’s history, operations, employee structure, customers, and competitors.
- Compare company performance with similar businesses in the industry.
- Evaluate budgets, leases, sales contracts, and purchase agreements, while also assessing the local and national economies and management capabilities.
- Understand the client’s needs and goals for the valuation.
- Define the standard of value and its interpretation.
- Consider discounts and premiums, if applicable.
- Research the industry and economic conditions to provide context.
- Select the most suitable valuation approach after reviewing all methods.
- Apply the chosen methodologies to reach a fair valuation.
- Ensure compliance with professional standards throughout the process.
- Deliver precise, reliable reports to aid in making sound financial decisions.
Business valuation is a complex process that requires deep expertise. At Aebiaccountax, we conduct a thorough analysis, considering industry conditions, business risks, cash flow projections, and many other factors to provide a comprehensive evaluation. It’s crucial to work with an experienced valuation expert to achieve the most accurate outcome. Our experts in Dubai provide detailed insights, helping you make informed decisions, whether it’s selling your business at the best price or investing wisely.
In addition to business valuation, Aebiaccountax offers a wide range of services including CFO services, accounting and bookkeeping, accounting software setup, due diligence, tax filing and VAT consultancy, and audit services in Dubai.
For any questions about business valuation in Dubai, feel free to reach out to us. Aebiaccountax is here to assist you!
We also offer a free one-hour consultation to help address your concerns and guide you through the process.