Valuation & Financial Due Diligence

Having done more than 300+ Valuations and 50+ Due diligence, our team is forefront in understanding the dynamics of deal structuring and valuation in any type of industry. We help you with the Registered valuation Report under Companies act for Securities and Financial Asset, Merchant Bank valuation report under Income tax act and ESOP valuation.

A valuation can be carried on for multiple purposes –

To know the value of your business.
Regulatory requirements and filing
Transfer of shares from one party to another
FDI infusion into your company.
Acquisition of a potential target company.

A valuation can also be carried on with multiple methods –

Net Asset value method
Discounted Cash Flow method (DCF)
Market Multiple approach method

Get ready with the following info to kickstart the exercise –

Corporate Profile of the company
Shareholding pattern as on date of valuation
Purpose of valuation
Audited Financials for the last 3 years
Provisional Financials from April to date of valuation
Projections for P&L, Balance sheet and Cash flow for the next 5 years.
Competitors in your Industry

Financial Due Diligence

Due diligence is the investigation or examination of any business or operation. Due diligence is required to be conducted before a potential merger, acquisition, privatization or any kind of financial transaction where an investment is made into another company. It is caution that every organization should take before entering into an agreement of merger, acquisition or any such kind of transaction.

Financial due diligence employs methods such as document review, conducting discussion and interviews with senior management and key employees, comparing historical financial data and trend analysis, and reporting of financial and other risks along with the actual operational situation of the target firm in written form to the company acquiring business.

Financial due diligence determines whether or not company accounts are reliable and evaluate the real situations of assets, liabilities and tax risk. Companies involved in acquisitions or mergers must ensure that all the information provided to the other party is accurate so that they pay the correct price for the business. Due diligence will help to identify the actual financial and strategic condition of the business. It is also a tool that helps an investor to discover other vital information about a business, which will help a buyer or investor to pay the actual price for the assets and liabilities he is taking over.

Find the Due diligence checklist here