"Yesterday" was the right time to have an independent business valuation for your company by an independent business valuer. And tomorrow will be late. The need for a business valuation arises for several reasons: incoming investors, financial strategy, business planning, business sale, founder exit, public offering, or net worth certification.
Raising money is a cumbersome multi-stage process while establishing a valuation is one of the most important steps along the way. Valuation matters to entrepreneurs as it determines the dilution in the company in exchange for fund raise.
As an entrepreneur, if you are considering selling your venture to a third party, a valuation that is prepared before the beginning of the negotiation will put you in a position of power. When you have a good idea of the value of a business, you can avoid wasting time looking at deals that do not make financial sense.
Having a buy-sell agreement in place between multiple owners ensures a smooth transition of a business in events such as death or disputes among the owners. Entrepreneur needs to understand the value of the business to determine the dilution of equity shares.
If the company is considering establishing an ESOP, a feasibility study is needed and a key part of that study is the valuation of the business. While publicly-traded companies can use their market values for the ESOP, privately-held corporations need an appraisal to know how much they can deduct for the contribution of shares to the plan.
Regulatory Valuations are required under Companies Act, Income Tax Act, FEMA, SEBI Regulations, Insolvency & Bankruptcy Code, IND-AS (Financial Reporting). Starters' CFO helps companies to navigate this environment of changing laws and regulations by offering skilled expertise for forming strategy and defending valuation positions.
An owner may want a business appraisal to help decide the near- and long-term strategies. While the investment in an appraisal is meaningful and not undertaken lightly, an owner at an inflection point in the business or his/her personal life may need the information to decide whether to sell, expand, gift, strategically plan or go in another direction.
Starters' CFO differs from the competition in the simple online processes it has built to help you achieve your valuation needs.
You can stop struggling through lists of email attachments sent back and forth for ever! Our digital partners include Zoho Books, Tally, Quickbooks & Razorpay amongst others.
Regulatory Valuations are required under Companies Act, Income Tax Act, FEMA, SEBI Regulations, Insolvency & Bankruptcy Code, IND-AS (Financial Reporting).
Different regulators in India have prescribed different, and at some places even contradictory, valuation requirements to be applied in specific situations. In addition to applicable laws & regulations, more recently, some regulators have also prescribed valuation to be conducted as per internationally accepted valuation guidelines.
Starters' CFO helps companies to navigate this environment of changing laws and regulations by offering skilled expertise for forming strategy and defending valuation positions by working in closely with Companies’ Board and Management and their tax and legal advisors to provide valuations services required under various laws and regulations.
How much should an investor pay for an interest in your company? It depends on what the company is worth. In order to set a price for an investor to buy into your company, a business valuation must be made.
While value can be set using certain key metrics (e.g., a multiple of earnings), an appraisal may be preferable (e.g., if you’re bringing in investors who are acquiring a substantial interest in the company).
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