Company Valuation Report

Company Valuation Report

    About Service
The Business Valuation or Company Valuation is a process to estimate the economic worth of stakeholder's interest in a business. Valuation may be done for a variety of reasons such as Mergers and Acquisitions, going public, voluntary assessment etc. There are broadly three approaches to valuation which need to be considered in any company’s valuation i.e. Asset Approach, Income Approach and Market Approach. Valuation is dependent on buyer and seller expectations and subsequent negotiations and the use of professional judgment in estimating value
 Timeline: 3-7 Working days
 Package Inclusions
  • Company Valuation Report
 Documents Required
  • Issuance Letter- Duly signed by one of the promoters/directors of the company on the company's letterhead. Format of the same will be provided
  • Description of what is for sale
  • Details about what is not for sale
  • History of the company
  • Balance sheet for each quarter for the past three to five years (depending upon since how long has company been in existence)
  • Income statements and other financial statements for each quarter
  • Company financial forecasts
  • Details on the industry and the company's market share in that industry
  • Detailed demographic information of the company's market
  • Detailed competitive analysis
  • Company's legal type and ownership structure
  • Tax returns for the past three to five years of companyand of its owners
  • Discussion of any audits or IRS scrutiny of the company
  • Any liens
  • All litigation (lawsuits)
  • Resumes of all company owners (unless a public company), officers, and top management executives
  • A summary of product inventory
  • List of current suppliers and customers
  • Listing of all intellectual property
 Process Details
  • Collection of data
  • Preparation of Valuation Report
  • Delivery of the Report
 Key Advantages
  • Funding- provides valuation of the company to determine the share of the company to be given to an investor in exchange for money
  • Mandatory Compliance- a necessary action that needs to be taken before raising an investment round
  1. What is valuation of company?
    The Business Valuation or Company Valuation is a process to estimate the economic worth of stakeholder's interest in a business.
  2. Why does startup valuation matter?
    Valuation matters to entrepreneurs because it determines the share of the company they have to give away to an investor in exchange for money. At the early stage the value of the company is close to zero, but the valuation has to be a lot higher than that. Valuation at the early stages is a lot about the growth potential, as opposed to the present value.
  3. 3 How does one decide valuation for early stage companies?
    It is generally calculated through Discounted Cash Flow method(DCF) which uses future free cash flow projections and discounts them to arrive at a present value estimate.
  4. Do I need a higher valuation always?
    Not necessarily. When you get a high valuation for your first round, you need a higher valuation for the next. That means you need to grow a lot between the two rounds without putting in the pressure of a down round.
  5. What are the reasons for valuation?
    There can be a variety of reasons of valuation. Such as mergers and acquisitions, voluntary assessment, going public etc.

Company Valuation Report with Legistify

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