Estimating the Value of a Business

  1. Audited financial statements
    Last 5 financial years Balance sheet, Profit & Loss Account, Cash flow Statement – with schedules and accounting notes.
  2. Auditors report for the last 5 financial years
  3. Management discussion and analysis if available for last 5 years
  4. Unaudited quarterly financial statements up to the month of valuation Balance Sheet, and Profit & Loss Account. For example, if the valuation exercise is being performed in the month of February, we shall need unaudited quarterly financial statement for first (April to June), Second (July to September), and third (October to December) quarters
  5. Shareholding pattern/partnership stake (if Private Ltd Company / Partnership / LLP)
  6. List of top ten customers with their contribution to sales (in percentage)

The business valuation report may take anywhere between 2 to 3 weeks from the time you have submitted all the requested documents and information.

  • Choose our Business Valuation Services
  • Share all the necessary information and documents
  • Our team researches your business, industry and comparable businesses
  • Our valuation expert, CA and team members revert to you with queries
  • Receive your complete valuation report within 3 weeks of answering all the queries

In preparing our valuation we have relied upon such information as has been provided by the client, information otherwise should be verified. In the event of significant variation from the information initially given to us, our valuation could require adjustment. We cannot express an opinion about, or advise upon, the condition of uninspected parts and the Valuation Report should not be taken as making any implied representation or statement about such parts.

Our valuation is provided only for the purpose agreed with the instructing client and will be for the sole use of the client. As such, it is confidential to the client and his professional advisers. We accept responsibility to the client alone that the report has been prepared with the skill, care and diligence.

Neither the whole nor any part of the Valuation Report may be included in any published document, circular or statement nor published in any way without our written approval of the form and context in which it may appear. We undertake all services only on the basis of these terms which shall apply to the exclusion of any other terms and conditions which the client may seek to impose.

The Valuation report derived will be based on the information provided the company and gathered by means of inquiry. The computation and analysis intends to provide reasonable grounds for valuing the business as a going concern. The reader is expected to exercise professional judgement when using the report to initiate any business transaction or relationship with the company.

Valuation will determine the expected price that a buyer may potentially pay for your business. However, the real price will be determined when the business transaction is closed and value that the buyer has paid for the business.

Valuation figure determined is to provide you with a broad estimate based on many variables. It does not confirm the price your business will be sold at, however, gives best estimated value of your business.

Some of the factors that determine the value of the business are Cash Flow, Customer diversification, Strong Key Management team, Company size, Industry outlook, Business Growth prospects, Competition.

No. Your business valuation is for your reference only. Only, if you want us to share the value of your business on your listing, we will do so.

Valuation is generally valid only for the valuation date indicated on the report and for the purpose stated. The businesses are recommended to conduct valuation every 6 months

It is important to consider future prospect of the business from both Sellers as well as Buyer’s perspective. Seller is interested to show the business potential in terms of growth prospects and as a result wants a higher business valuation. Whereas, the Buyer wants to evaluate the risks and opportunities going forward.

Intangible assets like goodwill, brand, trademarks and copyrights, intellectual property, royalty, software rights, etc. plays an important role in valuing a business. These are generally valued at acquisition costs.

If the business has significant amount of off-balance sheet liabilities, such as derivatives transactions, long-term lease agreements, the valuation should reflect these off-balance sheet liabilities.

Yes, the valuation shall consider the potential to expand capacity or any such business or operational flexibilities that is offered by a particular business.

A running business shall be valued as a going concern. The valuation here shall be estimated based on its current cash flow, growth of cash flow, value of assets and liabilities and its capital investment. A dormant business on the other hand generally does not have cash flow or the cash flow does not originate from business operations, for example rent of property. In such cases the valuation of the firm shall be estimated considering market value of its fixed asset and adjusting that for any liability.

To conduct the valuation of the business, we will require all the necessary documents listed in this section.

The business valuation can help you improve the way you manage your business let alone to determine the Business worth. A business valuation can help you achieve the following :

  • Determine asking price of your company
  • strengthen your credibility
  • track your goals
  • investment requirements, and many more

Valuing goodwill or a brand developed in-house (i.e. by incurring marketing expenditure, ensuring quality and meeting consumer expectations and perceptions) is always a challenge.

The brand in order to have implications for valuation of a firm/business shall pass through two tests:

  • the brand must result into higher sales for the company compared to its competitors
  • per unit price of the product that the company realises must be higher than similar products offered by competition.
If an in-house developed brand passes these two tests, a brand would have significant impact on the value of the firm.

The valuation will be done by Independent Third party – see profile here

Answer few simple questions and get an estimated valuation quickly
Note: The formula we use is based on different valuation methods and multipliers based on publicly listed companies as comparables for your industry
Price/Sales :- EV/Sales :- EV/EBITDA :- PBV :-
Price/Sales with cal:- EV/Sales with cal :- EV/EBITDA with cal :-
The estimated valuation is in range

To get the actual valuation of the business by a qualified,independent expert and a detailed valuation report, opt in for our Detailed Valuation Report

This is an estimate only and not a binding valuation of your company. It is based on the information provided by you along with the algorithm used by IndiaBizForSale. The calculations provided should not be regarded as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. Past performance do not indicate future results.

  • What is Valuation?

Business valuation is the process of determining the fair market value of a business, or in simple terms, the true worth of a business.

  • Why Valuation?

Unrealistic valuation is one of the major reasons why good deals fall out


Get what you deserve in a transaction by knowing the real worth of your business


Quote realistic valuation for higher chances of gaining buyer/investor confidence

  • How We Help
  • Get a more accurate valuation of the business by a qualified in-house valuation expert
  • How it works:
  • Choose our Business Valuation Services
  • Share the required information and documents
  • Our team analyses your business, industry and comparable businesses
  • Our team reverts to you with queries
  • Receive your complete valuation report within 3 weeks of answering all the queries
  • Profile of Valuation Expert:
  • Mayank Patel, CFA, B. E. (Electrical), M.B.A.(Finance), PGD in Treasury & Foreign Exchange Management, CFA(USA)
  • More than 9 years of experience in banking and financial services
  • 8 years of experience as an academician

About Us enables SMEs quick deal-sourcing, matchmaking, and end-to-end deal management through technology platform and advisory services. Our clientele includes businesses and professionals who are looking to buy and sell businesses, secure investment opportunities, and explore strategic growth options such as joint ventures, distribution partnerships and franchising.

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