Valuations

• Under Companies Act, 2013
• Under Foreign Exchange Management Act (FEMA), 1999 as per the requirements of RBI
• Under Income Tax Act

Post-transaction valuation services are experiencing significant growth, driven by the increasing complexity of M&A deals, heightened regulatory scrutiny and the strategic need to unlock value beyond the deal closure. 

Post transaction Advisory includes not limited to:

• Purchase Price Allocation (PPA): Purchase Price Allocation involves the process of allocating the total purchase consideration paid in a business acquisition to the identifiable assets acquired and liabilities assumed, based on their fair values at the acquisition date. By carrying out proper allocation of purchase price, companies can reflect the true economic value of acquired assets and liabilities in their financial statements.
• Impairment testing: Impairment Testing involves evaluating whether the carrying value of goodwill/investments on a company’s balance sheet exceeds its recoverable amount. This process is essential for ensuring that financial statements reflect the true economic value of acquired businesses at frequent intervals.
• Financial instrument valuation: Carrying out valuation of various financial instruments like convertible and nonconvertible debt and equity instruments, ESOPs and other derivative financial instruments using methods such as Monte Carlo simulation, Black-Scholes model, binomial option pricing method and other methods such as probability weighted return method (PWERM), and arbitrage pricing theory (APT).

Valuation of intangible assets is a specialised process that involves estimating the economic value of non-physical assets such as trade name, customer relationships, customer contracts, IPs, non-compete, developed technology. These assets often play a critical role in a company’s competitive advantage and financial performance.

Precise valuation of intangible assets aids in better decision making across M&A, licensing, joint ventures, and fund raising. 

It involves Preliminary discussion with management to discuss about nature and characteristics of the asset to be valued, gathering basic information like property title documents, fixed asset register (FAR), building area statement, undertaking site inspection to understand location, condition and corroborate factual data gathered and discussions with onsite team, undertaking market research in the catchment areas to understand demand supply dynamics of property, analysing the data, applying, appropriate valuation methodology and providing appropriate reasonings and necessary explanations in the valuation report.

Valuation services play a pivotal role in private equity (PE) across the entire investment lifecycle, from deal sourcing and execution to portfolio management and exit.

We provide comprehensive valuation services to some of the largest private equity funds in India, supporting them across the investment lifecycle i.e., from acquisition and portfolio monitoring to exit planning and ensure compliance with regulatory standards. With deep domain expertise and a commitment to precision, we help funds unlock value, comply with regulations, manage risk, and maintain transparency across their portfolios to their auditors, investors and regulators.

Valuation of assets under dispute or litigation refers to the process of determining the fair value of assets that are subject to legal conflict. These assets could be tangible (like real estate or machinery) or intangible (like intellectual property, shares, or contractual rights). This valuation is crucial for resolving disputes, negotiating settlements, and supporting legal proceedings.

The expertise in the domain and experience of such transaction provides fair negotiation between parties, reduces uncertainty and speeds up resolution and ensures compliance with financial and regulatory requirements.