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What is Business Valuation?

by D F
business valuation services

The valuation of business and its assets is a major concern of every investor. It not only gives an idea about the worth of a company but also helps them in making their investment decision. The process of valuing your business or its assets can be complex and time-consuming, as it involves analysing many aspects of your business.

Hence, you should hire a team of expert business valuation advisors in Singapore that can help you with the same.

Business Valuation Services Singapore

We are a boutique business valuation firm providing quality and affordable business valuation services in Singapore

Our professional team of Chartered Accountants, Certified Practising Valuers, and Corporate Finance professionals have extensive experience in providing independent valuation services and corporate finance advisory services to businesses of all sizes in Singapore, Malaysia, Thailand and Vietnam.

What is Business Valuation?

Business valuation is the process of determining the economic value of a business or company. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership, and divorce proceedings.

Why Get Your Business Valued?

Small business owners in Singapore are often too busy running their businesses to think about valuing it. But it’s always a good idea to have your small business valued as part of your succession planning.

There can be many reasons why you might want to know the value of your business. You might be looking for an exit strategy or are planning to sell your company in the future. Perhaps you need to know your company’s worth for insurance purposes, or you’re looking at acquiring assets from another company and need to know how much they are worth. Maybe you have an equity partner and want to know how much equity each partner holds. Or perhaps you need a valuation for divorce proceedings.

A business valuation is a complex process. To reach the correct value, it’s important to consider all relevant factors and apply consistent methods.

A detailed analysis of the business

The first step in a business valuation services is to compile a detailed analysis of the business. This includes all kinds of information about the company, its products and the market it operates in. We also take into account its financial history, current performance and prospects for the future. In addition, we look at technical and human resources as well as other tangible and intangible assets.

The suitability of different methods

There are various methods for valuing a company or parts of it. The most commonly used are: cost approach, income approach and market approach. These can be applied separately or by combining them with each other, depending on what suits your circumstances best. For example, some methods may be better suited to valuing your property portfolio than others, while some may work better for an intangible asset such as a trade mark or patent.

What’s more, we use our own models where these are more appropriate. A good example of this is our Valuation Model for Start-Ups (VMST).

Get a professional business valuation to help you make the best decisions when buying or selling a company.

Determine the fair market

a business valuation can help you determine the fair market value of your company, and what it might sell for. These valuations are often required for business purchases or sales, as well as for tax or estate planning purposes.

In addition to providing an estimated price, a professional business valuation can help you strategize how to maximize your company’s value based on its current assets and performance.

If you are planning to buy or sell a business, get an independent business valuation before you do so. It is in your own interest not to rely on any value given by the seller or buyer.

We can help you with:

  • Independent Valuation of companies, businesses and assets
  • Expert Advice on Business Valuations and Fairness Opinions
  • Pre-investment Advisory Services including Due Diligence Audit

Estimates of value are useful in determining the current value of a business, as well as its potential for growth.

Accurately assessing the value of your company is key to understanding its true worth and potential. While every business has different needs, there are many common reasons why companies seek to establish an accurate valuation report.

Here are the following points of Business valuation

  1. A number of events or circumstances require you to know the value of your company, including:
  2. To determine a fair price for your company, either from a buyer or investor
  3. To help maximize your profitability and cash flow
  4. To determine a buy-sell agreement price with partners
  5. As part of an estate planning strategy for moving ownership and management to the next generation
  6. For mergers and acquisitions, recapitalization or reorganization.

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