Business Valuation in
Mumbai Suburban

IMAK Advisory is an ICAI-registered firm of chartered accountants in Whitefield, Bengaluru, providing business valuation services for fundraising, share transfers, foreign investment, ESOPs, tax, mergers and financial reporting across India. Every engagement starts with two questions: what is the purpose, and who must sign the report – a chartered accountant for FEMA certificates, an IBBI registered valuer for Companies Act valuations, or a SEBI-registered merchant banker where a regulation requires one.

What is DCF valuation? It values a business as the present value of its expected free cash flows, discounted at a rate that reflects risk, plus a terminal value. There is no single valuation formula: DCF, net asset value, P/E and EV/EBITDA multiples each have their own, and the income-tax rules prescribe a separate net-asset formula for unquoted equity shares under Rule 57 (formerly Rule 11UA).

Valuation of securities covers equity, preference shares, debentures, convertibles and options, each priced on its own rights and terms. Under FEMA, shares issued to non-residents must be priced at not less than fair value, using a report not more than 90 days old. For Indian startups with a US parent, a 409A valuation of the parent's common stock is prepared by an independent US firm; we prepare the Indian subsidiary's information and handle the FEMA, tax and transfer pricing side.

For income tax, receiving unquoted shares below fair market value can be taxed in the recipient's hands, and selling them below fair market value can be treated as a sale at that value, so family transfers, gifts and secondary sales between shareholders still need a computation even though the angel tax on fresh issues was abolished.

In the accounts, investment valuation follows AS 13 or Ind AS 109, and stock valuation methods for inventory – FIFO, weighted average, specific identification, standard cost or the retail method – follow AS 2 or Ind AS 2, at the lower of cost and net realisable value; LIFO is not allowed.

The revaluation meaning in accounting is restating a whole class of assets, such as land and buildings, to fair value under AS 10 or Ind AS 16. The revaluation of assets credits increases to revaluation surplus and charges decreases to profit and loss, unless they reverse earlier movements. A typical revaluation journal entry for an increase is: debit Land, credit Revaluation Surplus. In partnership accounts, a revaluation account is used on admission or retirement of a partner.

A business valuation is only as good as the information behind it: three years of financial statements, a credible business plan, the cap table, the terms of every instrument and the shareholders' agreement. We discuss the plan with management before building the model, show how the result changes when key assumptions change, and keep the FEMA certificate, the Companies Act report and the tax computation for the same transaction consistent with each other. We do not work backwards from a target number.

We do not publish fees; our team shares the exact total after reviewing your requirements. Visit us at ITPL Main Rd, Pattandur Agrahara, Whitefield, Bengaluru, Karnataka 560066, call or WhatsApp +91 79798 50684, or email imakadvisoryteam@gmail.com, and the IMAK Advisory team will confirm the purpose, the method and who should sign your business valuation.