Whether it is an acquisition of any business, of Demerger, or merger or Sale of any Company – First question comes in our mind : What is the fair value? What maximum price should be paid? At the same time, various stakeholders and regulators seeks greater transparency through fair value reporting and emphasising on the importance of valuations. Hence the requirement here arises for an Independent Valuer.
Business valuation is the process of determining the economic value of a business or company. Valuation here also termed as Fair Market value, determined on the basis of various factors and assumptions and available financial date. Business valuation can depend on the values of the assessor, tangible and intangible assets, and varying economic conditions. Business valuation provides an expected price of sale; however, the real price of sale can very.
Why Business Valuation is required?
Business valuation requirement arises under various Laws , say for example Companies, Act, IBC Code, Income Tax Act, RBI, SEBI. Valuation need arises to comply corporate governance or regulatory reasons, or management review for critical input for decision making process. .
Few Circumstances under which Indian Regulations mandate valuation from a registered valuer - Mergers & Acquisitions, Demerger, Sale of Business, Startup Company Valuation, Share Valuation, Capital Gain Tax, Issue of Share at Premium, Sale of Other Assets.
FinTax Corporate Professionals LLP
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FinTax Corporate Professionals LLP
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