Business Valuation

Business Valuation in UAE is an elaborate process to determine the true economic value of a business or company. It is used to determine the company’s intrinsic worth for the purpose of a potential sale, merger, acquisition, restructuring, raising debt or capital, taxation etc. Such valuations use detailed financial and non-financial metrics across different aspects of the business, and it is essential for current and potential stakeholders for crucial decision making.

Business Valuation Service in UAE generally involves professional experts using company’s internal data and market intelligence to determine the fair value of the business. This valuation helps businesses to establish goodwill in the market for its suppliers and creditors as well as helps attract new customers or raise credit through lending channels, thus, leveraging growth opportunities.

Dubai is the financial hub of the MENA region which attracts not only global firms but also a large number of startups looking to expand and establish a solid footprint. Business Valuation in Dubai is an essential service needed by such firms to establish their net worth and consequently attract capital for future expansion. Knowing the true worth of a company can help in making critical strategic decisions.

Valuation of a business not only involves a detailed analysis of historical financial statements but also a precise estimation of future projections and its impact on the earnings. Typically, business valuation can adopt any of the below methods or a combination of methods depending upon the complexity of the underlying business and the available information. There might also be subjective overrides involved – based on industry data and market intelligence, thus bringing in expert judgement as part of overall analysis.

  • Income Approach – Discounted Cash Flow Method
  • Comparable Company Analysis
  • Market Comparable – based on comparable transaction data
  • Asset Approach – Net Asset Value

Although such techniques provide us with a fair estimate of financial value of a business, a professional business valuation firm like Quantum Auditing, with significant experience under its belt, understands that the true intrinsic value of a business enterprise needs a critical value added overlay, encompassing comprehensive review of underlying business model, the management team and their succession planning, key value proposition, relevant risk factors, consumer base, brand value etc.  Hence, it is crucial that the valuation team onboarded is actively engaged with the client throughout the process, to validate objective as well as subjective areas of the underlying methodology, in order to achieve the true reflective value for the business for its stakeholders.

Anyone looking to buy, sell or transfer shares or stakes in a business in UAE, needs to involve financial experts that can provide a thorough business valuation service. A firm that can turn this tedious process into a simple yet comprehensive one, in order to execute critical decisions related to current and future growth of the company.

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