Business Valuation
Get your business valued the right and fair way
Measuring the value of your business is a complex process that takes both objective and subjective factors into account – which means that you need a professionally recognised evaluator to produce a meaningful valuation. Foundsworfth can assist you in this regard with an in-depth assessment that suits your requirements, whether it involves an evaluation of the entire business, its ownership interests, or from an asset-based perspective.
Using industry-recognised evaluation methodologies, our expert team will ensure an objective and accurate assessment of your operations that will produce a clear snapshot of where your business stands. This data is vital for essential regulatory functions such as financial reporting and the filing of taxes. With this assessment, you can also make informed decisions about the future of your business, whether that involves mergers and acquisitions, restructuring, or raising funds through stock offerings as well as financial instruments such as a business term loan in Singapore.
Ultimately, a business valuation is a key stepping stone towards the further expansion of your business – which is what Foundsworth promises to achieve as your financial partner.
Precise Valuation
Providing an accurate enterprise value for your entire business or company
A business valuation serves a number of purposes, with the most common being when the business owner plans to sell all or part of their stake in the operations, or when funding is to be obtained through a financial instrument such as a business term loan. A valuation is also required for reporting and taxation purposes, as well as to initiate a merger or acquisition process with another company. In some cases, a valuation may be required due to an owner going through divorce proceedings. Whatever the case, this assessment needs to be as thorough as it is accurate, as it can have profound implications on the future of the business.
The stage, size, and nature of the company can also have an effect on the business valuation. Smaller companies tend to sell at lower multiples than larger companies in the same industry. A company that is in the process of a buyout has a different enterprise value from a company that is in the process of a merger. For business owners, comprehending and optimising the value of a business can be quite complicated. It involves multiple parties, different factors, and a multitude of processes.
As your trusted financial partner, Foundsworth exists to support your business’s journey upwards, and we can help you take this initial step with confidence. Whether you’re facing a buyout, engaged in a dispute resolution process, want more favourable conditions when acquiring a business term loan, or aim to enter into a merger, we will ensure a comprehensive assessment that takes all relevant factors into account to measure the value of your business.
Our team has years of experience working with clients in multiple industries, assisting them in business planning and business valuations. Our deep expertise in the corporate finance sector allows us to help clients of all types of businesses and sizes in any country or region in the world. Put your trust in our decades of proven expertise, and let Foundsworth help you take your business to new heights.
Why get a business valuation for your company?
Here are some of the common reasons a business may want to get a valuation done.
Mergers and Acquisitions
Business valuation plays a key role in all merger and acquisition activities. It provides an objective range of values in which negotiation can commence. This has various implications from both buyer and seller perspectives. A buyer will need to perform a company analysis and assess the value of a company in order to make an offer. Without an objective view of the value of the business, it may be difficult to assess any offer to purchase it.
Taxation Purposes
Business valuation is also important for tax reporting purposes. The enterprise value of a business or company has to be found in order to assess the tax consequences. There are many situations where you need to conduct the business valuation for tax purposes, such as capital gains measurement, claiming of writing down allowances for intellectual property rights, changes in capital structure, changes in ownership and more.
Fundraising
To obtain financing, the important step is establishing a business valuation. Potential investors will require a valuation before making the decision to invest in the company or not. Having an accurate valuation for your company using various methods of valuation will help the business owner in the negotiation process and help both investors and owners come to an agreement.
Corporate Restructuring
The corporate restructuring may occur due to multiple reasons such as a change in economic or market trends, changes in corporate strategy, changes in ownership and more. No matter the situation, the company will need to be able to understand the value impact of the restructuring process. Corporate restructuring can involve many types of transactions, such as the sale or purchase of the business, the formation of joint ventures, and more.
Financial Reporting
It can be quite challenging for companies to get accurate and fair financial data. When preparing their financial statements, the financial information has to be measured at fair value. That is, the information has to use a more current value rather than using a historical value. This is where a business valuation is carried out, in situations such as the initial valuation of goodwill, impairment testing, reallocation of value to identifiable intangibles and more.
Our Approach and Methods:
Market Approach
The market valuation method establishes the valuation of a business by comparing it similar businesses that have been recently sold or acquired in the same industry sector. It includes a precedent transactions analysis. Observable data are collected for these businesses and then the adjustments are made to the data to compensate for any differences between those businesses and the subject being valued. This business valuation approach works best only if a business or company has sufficient market data on their competitors with recent sale data (current market value).
Income Approach
Income methods are used to value a company based on the income-producing capabilities of a company, generally by analysing and looking at the company’s future cash flows. These are commonly used for valuing start-ups and other businesses with reasonably reliable forecast cash flows. There are two income-based valuation methods used when valuing a business.- Capitalization of Earnings Method and the Discounted Cash Flow Method.
Asset Approach (Book Value)
An asset-based valuation method takes the book value of the individual assets of a company and deducts the liabilities, according to the balance sheet. Using this approach, the company is viewed as a set of assets and liabilities. As such, the value of the company comes as the excess of assets over liabilities in adjusted value terms. There are two ways to approach this business valuation process.