CDA Accounting and Bookkeeping Services LLC offers business valuation services in Dubai, UAE to help you understand the worth of your company. Measuring the key aspects such as market, assets, liabilities, management, etc., CDA evaluates your business and supports you in important decision-making to ascertain excellent benefits.
Business Valuation is the process of determining the current value of a business, taking into consideration various factors like assets, liabilities, income, management and the location that the company holds.
Determining the value is essential for the company as well as for its stakeholders as it can help you in making important decisions. It requires high-level financial analysis that is to be conducted by a qualified valuation professional with the appropriate authorizations.
Basically, a company is priced on the basis of its market value. Wide-Ranging valuation analysis and the valuation report done by a valuation professional will ascertain significant benefits, which may be lost if the business owner goes for a low-cost valuation. These benefits help business owners get a better price, or reduce the financial risk of the management in litigation or other events.
The asset-based valuation considers the basic business assets in order to estimate the value of the overall business enterprise. This technique is good for corporations, but it will be challenging if applied to a sole proprietorship, because, since the assets belong to the same owner, it will be difficult to separate the same for personal use and business purposes.
Under the Market-based valuation, the marketplace is considered for the business value. It compares the value of one’s business to another similar business which is sold recently.
The Income-based valuation method is based on the economic principle of expectation to determine the value of a business, i.e. the real value of a business lies in building wealth for the future. Based on this fact, an evaluator ascertains the upcoming cash flow by examining the records, and also assesses the upcoming financial risk.
All these approaches may bring different estimates of value for the same asset at the same time. If you want to know the real estimate, you have to use all these approaches to reach a final conclusion.
Business valuation provides you a clear picture of your business. It will help you increase the goodwill and assess the current value of your business according to the market environments.
Getting the exact value of your business helps you to have an upper-hand over other business at the time of merger or acquisition.
Business valuation shows the company’s value. A high value would eventually attract investors towards your business to a great extent and leverage the growth openings of your business.
The value of your business will act as a decision-making tool, and it will help you take long-term decisions concerning your business expansion.
The current valuation report provides the fundamental details of the company’s assets and liabilities. This will help you take decision to restructure the company as and when required.
Your company’s high value will help you build a trust in the minds of the financial institutions and it will be easy for you to get loans from the market for future expansion.
A Businesses valuation is done based on various reasons, of which some of the common reasons are discussed below: -
An objective of your business will help you raise funds for your business while negotiating with banks.
Goodwill impairment happens when the purchase value is greater than its implied fair value. A goodwill valuation will help you understand the impairment loss of the business.
A business valuation will make sure that you reach the right decision on whether to sell your business or grow your business through acquisition.
At the time of buying or merging with another company, a business valuation will help you determine if the price you have to pay is a fair one or not.
If there is a court case against the value of the business, it will be settled by the court based on the valuation of the business.
An independent valuation of the business is required for a fair settlement of ownership issues once any one of the owners decides to quit.
A valuation report provides your company with certification that can assist with creditor negotiations and provide the basis for a financial restructuring plan at the time of bankruptcy.
Your company’s location is a major factor when it comes to valuation because if you are in a prime location, it can be a major advantage for your business.
Ratio analysis is the assessment of line items in the financial statements of a business. It includes GP Ratio, NP Ratio, ROI, Liquidity Ratio, etc.
A comparative analysis allows company owners to compare their company's financial ratio information with that of a challenging company.
The going concern concept is the hypothesis that an entity will remain in business for the predictable future.
Several actions and factors are to be considered in the execution of a business valuation. The following are some of the general valuation procedures that we follow: -
Business Valuation process is not an easy task. It needs a thorough understanding of the industry, the business risks, cash flow expectations, and many other situations. So, it is always advisable that the business valuation process must be done by a valuation expert. CDA Valuation Experts can provide you with informed insights into the valuation process and help you to either sell the business for a worth price or take right decision to invest in a worthy business.
CDA services cover a wide range of business services that includes CFO Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and Tax Filing & VAT Consultancy services, Audit Services in Dubai.
If you have any queries regarding your firm’s business valuation or about your current business, feel good to contact us. CDA is there for your assistance!
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