VALUATION
As the ‘Dean of Valuation’, Prof. Aswath Damodaran calls it, Valuation is neither a science, nor an art, but a craft that requires a skill that you learn by doing. The exercise of valuing a business is not a standardised process of running an Excel valuation model. It is hurdled with uncertainty, subjective judgements or assumptions, and has an element of human bias created by differing perspectives and diverse market opinions. At Surti & Talati, we invest our energy in understanding the business in depth; how the business has created value historically, and how it plans to create value in the future. We approach an assignment with the objective to overcome these hurdles and focus on the drivers of value whilst being conscious of the industry, stage of the business cycle that the company operates in, purpose of the valuation exercise, stakeholder expectations and regulations surrounding the same.
Need for Valuation
We do provide valuation support for regulatory compliances, however, these processes generally align themselves to justify valuation already agreed upon. However, the need for valuation has expanded far beyond its regulatory and compliance requirements.
- Strategic Valuation for evaluating business growth and expansion strategies, including feasibility review of a proposed capex plan
- Pre-deal Valuation and creation of bespoke financial models for entities seeking to raise funds, considering mergers or acquisitions, or joint ventures, or divestures
- Post Transaction Valuation and evaluation of synergies
- Valuation for Start-ups and new businesses in the form of a business plan and evaluation of funding requirements at various stages of the business cycle
- Valuation of Intangible Assets and apportioning value to various assets through a Purchase Price Allocation