Valuation is the analytical process of determining the current (or projected) worth of an asset or a company. There are many techniques used for doing a valuation. An analyst placing a value on a company looks at the business's management, the composition of its capital structure, the prospect of future earnings, and the market value of its assets, among other metrics.
Section 247(1) of the Companies Act 2013 mandates valuation to be carried in respect of any property, stocks, shares, debentures, securities or goodwill or any other asset or net worth of a company or its liabilities under the provision of this act.
“Valuer” means a person registered with the authority in accordance with the Companies (Registered Valuers and Valuation) Rules, 2017
REQUIREMENT OF VALUATION
- For Transaction Advisory for New Fund-Raising.
- Business Restructuring such as Mergers, Acquisitions & Business Combinations.
- For reporting under IFRS, US GAAP and Indian GAAP.
- Joint-venture negotiations (e.g. to prevent overpayment).
- Preferential/Private placement of shares
- Valuations under IBC by Registered Valuer.
- Investor relations.
- For Purchase of minority Shareholding in India.
- For Regulatory requirements in case of any deals & transaction valuations
The Valuation Reports after 1st February, 2019 has to be obtained from Registered Valuers registered with IBBI. There are various regulations in India such as Companies Act, 2013, Insolvency and Bankruptcy Code, 2016, SEBI Regulations and such other laws/Regulations which mandates a company to avail the services of a Registered Valuer.
STEPTS INVOLVED IN VALUATION PROCESS
- Sharing of Preliminary checklist based on the client’s requirements.
- Preparation of draft Business/Equity Valuation report for review keeping in mind Industry trends and Company performance.
- Discussions and submission of Final Valuation Reports.
THE J&P ADVANTAGE
Our Valuation Team at J&P handles the whole process with utmost due diligence. From documents compiling to the completion of the process our team works with utmost care leaving no potential loopholes. Our valuations help our clients in making informed investment and other business decisions. Based on specific need of our client our team helps to quantify and articulate value for transactions, investments and strategic management purposes. Our team provides complete support to our clients to justify the valuation arrived at.
Enlisted below are some of the services offered by Valuation Team of J&P in respect of Valuation:
- Business, Equity and Financial Valuations
- Pre-deal Advisory and Valuation
- Valuation of Securities and Financial Assets
- Valuation pertaining to Mergers & Acquisitions
- Valuation for ESOP’s and Sweat Equity
- Valuation for Preferential Issue
- Financial Due Diligence