There are three core Valuation approaches- Asset Approach, Market Approach and Income Approach.
The Asset approach involves the Cost method and the Net Asset Value method, Market Approach is a form of Relative Valuation and is frequently used involving Comparable Analysis and Precedent Transactions. Finally, the Income Approach involving the Discounted Cash Flow Approach (DCF) is a form of Intrinsic Valuation.
|Business/ Equity Valuation||For Investment/ Acquisition/ Sale/ Strategic decisions/ Voluntary Value assessment of Businesses/ Equity Shares including convertible instruments|
|Mergers & Acquisitions (M&A) Valuation and Swap Ratio||For determining relative valuation of companies and share exchange ratio in the event of Arrangement/ Amalgamation|
|Intangible Valuation||For Investment/ Acquisition/ Sale of Intellectual Property Rights(IPR’s)/ Brand/ Software for Value assessment, and Accounting and Financial reporting purposes|
|RBI Valuation||Under FEMA Laws (FDI), Valuation certificate is required for Issue/ Transfer of Equity Shares/ Compulsory convertible instruments between resident and non- resident and for Investment|
|ESOP Valuation||ESOP Accounting Valuation is required upon Grant of Options for booking compensation expenses by Company and ESOP Perquisite Tax Valuation is required upon exercise of option by employees under Income Tax Law|
|Tax Valuation and Transfer Pricing||For issue/ Transfer of Shares between Residents (Gift tax) & Transaction between Associated enterprises under Income Tax Law|
|SEBI Valuation||For determining value of Shares under Takeover Code/ Preferential Allotment/ Exit opportunity/ Delisting etc.|
|Sweat Equity Valuation||For valuing Sweat equity shares/ IPR/ Technical Know How|
|IND AS/ IFRS Valuation||Ind AS requires determining fair value of Financial Instruments, ESOPs, Intangibles and Investments etc.|