Business Valuation
A business valuation serves as a valuable tool for making strategic decisions aimed at enhancing business performance by identifying areas in need of improvement. Additionally, it helps prevent disputes and unexpected financial obligations, offering benefits not only when contemplating a sale or retirement but also as a means to identify avenues for enhancing business value. Our advisory team possesses the necessary expertise to assist companies and investors in the UAE in determining business value and guiding them through the transaction process. We tailor our approach to your specific requirements and the current business landscape to provide the most suitable recommendations.
Our services encompass various aspects of business consultancy, financial feasibility studies, company formation consulting, ESR filing, and due diligence. Understanding the value of your business becomes particularly critical in scenarios such as bankruptcy, liquidation, fundraising efforts, or when devising exit strategies for the company. As business valuation advisors, TMK offers comprehensive support for calculating the intrinsic value of your business, employing various financial methods including net asset value and the discounted cash flows method.
Benefits of Business Valuation Services
01.
Enhancement and Assessment
Business valuation provides you with a comprehensive understanding of your business, enhancing its goodwill, and assessing its current market value.
02.
Attraction for Investors
A high business valuation showcases the company’s worth, making it an attractive prospect for investors and capitalizing on growth opportunities.
03.
Facilitating Acquisitions and Mergers
Having insights into your company’s value instills confidence in financial institutions, simplifying the process of securing loans for future expansion.
04.
Facilitating Acquisitions and Mergers
Accurate knowledge of your business’s value positions you advantageously during mergers or acquisitions, offering a competitive edge over other businesses.
05.
Decision-Making Aid
Once you are aware of your business’s value, it serves as a valuable decision-making tool, aiding you in making informed, long-term choices for business development.
06.
Company Restructuring
Valuation reports contain essential details about company assets and liabilities, providing a snapshot of the company’s current worth, facilitating necessary restructuring when needed.
Main Approaches used in Business Valuation
This method entails physically verifying the assets within the entity and determining their value. Under this approach, the value is derived by subtracting the total liabilities from the net asset value as reflected on the balance sheet. We employ this method particularly in asset-intensive valuations and collaborate with certified technical valuers for accurate assessments.
Within the Market-Oriented approach, we rely on data from comparable transactions, ideally within the same industry and geographic area, to determine valuations achieved by other companies. This method can stand alone effectively if recent comparable transactions are available, and if there is dependable data to conduct a meaningful analysis of these transactions.
Within this approach, the value of a business hinges on its capacity to generate earnings in the future. Typically, this method comes into play when investors are deliberating whether to invest in your company. Prior to making an investment, investors seek to ascertain the return on investment they can expect.
The evaluator computes future income by referencing historical data on expenses, sales, profits, and other critical figures and trends. Investors also seek information on the period required to recoup their initial investment, the anticipated additional income generated by the business, and whether any other businesses offer a superior return on investment compared to the company under consideration.