2025-08-29

Who Uses Valuation Reports - and Why?

 Who Uses Valuation Reports - and Why?

Valuation isn’t just for fundraising. It’s a strategic, legal, and financial necessity for multiple stakeholders.
Whether you're building, investing, regulating, or exiting - valuation insights guide decisions, mitigate risks, and ensure fairness.

 1. Founders & Promoters
To raise equity, issue ESOPs, and comply with:
• Section 56(2)(viib) of the Income Tax Act
• Startup India guidelines
• Companies Act pricing norms
They also use it to justify the company’s worth to investors, banks, and boards.

 2. Investors (VCs, Angels, PE Funds)
They rely on valuations to:
• Negotiate equity stakes
• Assess entry & exit multiples
• Benchmark risk vs return
• Justify internal investment committee approvals

 3. Companies (Private & Public)
Need valuations for:
• Mergers, Demergers, and Buybacks
• ESOP pricing
• Share transfers
• Slump sales and restructuring
• FEMA & FDI compliance

 4. Legal & Tax Authorities
Use valuation reports to:
• Check fair value under tax laws
• Determine stamp duty & capital gains
• Review pricing in cross-border transactions
• Resolve disputes or litigation

 5. Courts & Arbitrators
In:
• Family settlements
• Shareholder disputes
• Oppression & mismanagement cases
• Divorce proceedings involving business interests

 6. Buyers & Acquirers
Use it for:
• Deal pricing
• Due diligence
• Risk-adjusted ROI analysis
• Earn-out & contingent consideration mechanisms

 Final Thought:
A valuation report is not just a number on paper - it’s a decision-making tool for everyone involved in the lifecycle of a business.

Next Up: How to Value a Startup That Has No Revenue

#ValuationDecoded #StartupValuation #FEMA #ESOP #Investors #Mergers #409A #FairValue

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Frequently Asked Questions

We provide professional valuation services across the following asset classes:
  • Land & Building (Residential, Commercial, Industrial, Agricultural)
  • Plant & Machinery (Manufacturing units, industrial assets)
  • Securities or Financial Assets (Equity shares, debentures, startups, AIFs)
  • Specialized Valuations for M&A, financial reporting, IBC, income tax, and more

Yes, our reports are fully compliant with applicable laws including:
  • Companies Act, 2013
  • SEBI Regulations (SAST, ICDR, AIF)
  • IBC, 2016
  • Income Tax Act, 1961
  • Valuation Standards by ICAI, IBBI, and IVSC

Absolutely. We have IBBI-Registered Valuers under all three categories—Land & Building, Plant & Machinery, and Securities/Financial Assets. Our team also includes experienced chartered accountants and engineers.

We serve a wide range of clients including:
  • Companies & Startups
  • CA & Law Firms
  • Banks & NBFCs
  • Government Departments
  • Individuals & HUFs

Our process is simple and efficient:
  1. Initial consultation to understand the requirement
  2. Document collection and site visit (if needed)
  3. Data analysis and valuation calculation
  4. Final report delivery, certified by a Registered Valuer

Key documents generally include:
  • Ownership/title documents
  • Asset photos or plant list
  • Latest financials
  • Company PAN, GST, or registration
  • Cap tables or investment details (for startups)

Turnaround time:
  • Land/Building or Plant & Machinery: 3–7 working days
  • Financial Assets / Startups: 1–7 working days
  • Fast-track services available on request.

Valuation may be required for:
  • Startup fundraising & ESOPs
  • Business transfers or buyouts
  • Regulatory compliance (SEBI, IBC, Income Tax)
  • Bank loans or mortgages
  • Fair value financial reporting
  • Mergers & Acquisitions

Yes, we specialize in:
  • 409A compliant valuations
  • DCF, NAV, and Berkus method-based startup valuations
  • ESOP pricing & compliance support

Our fees are competitive and project-specific, based on:
  • Nature and size of asset
  • Complexity of engagement
  • Regulatory requirements
  • Contact us for a personalized quote.

Our detailed reports feature:
  • Valuation method and justification
  • Market research & data
  • Key assumptions and disclaimers
  • Final value conclusion
  • Certificate by the Registered Valuer

Yes. We offer remote/desk-based valuation for startups, financial assets, and select use-cases. For physical assets, we usually require on-site verification.

Yes. We offer:
  • Monthly/quarterly retainer packages
  • Bulk valuation pricing for CA firms, legal advisors, banks, and corporates

Yes. Client confidentiality is paramount. All data shared is stored securely and not disclosed to any third party without your consent.

You can get started by:
  • Filling out our Contact Form
  • Calling us directly
  • Scheduling a free consultation