Valuation
Value is a core consideration for any business. knowing the value of an asset, transaction, company, partnership, competitor, or target can create new business opportunities and function as a key driver of corporate transactions.
Whether for financial reporting purposes, acquisitions or sales, tax planning or dispute resolution, valuations are required at many stages of the business lifecycle. Knowing the value of your business or your personal business interests and other assets can give you the confidence you need to plan for the future.
The domain of valuation requires thorough understanding of the business coupled with usage of valuation methods and techniques. Be in transactions valuation, regulatory valuation, or accounting valuation, RGS Team would enable identifying the right valuation outcome for a given requirement.
Valuation provides information to assist with planning and investor strategy. Other than reporting, it is also a critical component of all corporate transactions such as mergers and acquisitions, corporate restructuring, and corporate recovery.
RGS has the capability and expertise required for undertaking feasibility studies and appraisals of businesses and investment proposals. We can also help assessment of asset quality, viability and quality of earnings and cash flow, capital structure, and business financing strategies.
Our Valuation services are broadly classified into the following :
- Business valuation for restructuring/purchase/sale/litigation
- Valuation for regulatory compliance
- Valuation for financial reporting purposes
- Private equity valuation
- Intangible assets valuation
- Transactional Valuation
- Purchase Price Allocation reports as per Business Combination accounting requirements (IND AS 103)
- Regulatory Valuation of schemes of arrangement, FEMA, etc.
- ESOP and securities valuation
- Valuation under the Insolvency and Bankruptcy Code
- Tax valuation under Income Tax Act, 1961
Due Diligence
It is of utmost importance in any transaction to identify and mitigate the various risks that the potential transaction can expose the contracting parties to. The process of due diligence is performed with an objective to identify the risks inherent to the transaction and also confirm the accuracy of certain key parameters on which the value of the transaction is based.
At RGS, the teams are extensively involved in performing transactional integrated due diligence including financial and tax due diligence for multiple transactions across multiple industry domains. The experience of numerous transactions is a key differentiate in assessing the risk potential and the methods to mitigate the same.
Risks arising of the transactions or identified during due diligence are effectively mitigated by altering the transaction structure or by enhanced documentary comfort. Our approach ensures that the structural impacts as well as diligence risks are appropriately addressed in transaction documentation.
Our approach to due diligence provides insights on :
- Quality of revenue - Identifying the key business drivers
- Quality of earnings - Ascertaining the sustainability of earnings
- Working capital - Normalizing for seasonality and one-off items
- Net debt – Estimating immediate cash outflows
- Contingent liabilities - Summarizing the significant exposures
- Tax positions - Assessing the history of claims and risk areas