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Professional Business Valuation Services in UAE

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Business Valuation Service in UAE

In the modern era, the very purpose of starting and conducting businesses has shifted dramatically. The entities seek opportunities to raise the value of a company and increase the value of its shares. Business valuation is a breaking point when an individual or group aims to buy, sell or transfer shares of an organization in the UAE. Investors must ascertain the right transaction value of their assets for a variety of reasons. It is a challenging task that requires expert opinions and support. That’s why BestaxCA is offering business valuation services in Dubai, Abu Dhabi, and across the region. Let’s get more information about our business valuation service:

What is Business Valuation?

Business valuation is a set of procedures to determine the economical worth of a business or its major assets depending upon the business model. It involves a detailed analysis of account receivables, bonds, loans, historical financial statements, and other debt instruments.  

Objectives of Company Valuation

Organizations conduct business valuations for various reasons, such as: 

  • Corporate governance and regulatory requirements
  • Better and rational decision-making
  • Resolve disputes in joint ventures, Mergers & Acquisitions
  • For obtaining business loans
  • Future financial projections and business earning potential
  • Increasing net worth and attracting investors

How Important to Value a Business in UAE?

Business valuation plays a critical role in determining the net worth of your company. If you are planning to restructure your company through acquisitions, joint ventures, or mergers, this becomes more significant. A higher value of your business builds the trust of your suppliers, shareholders, or creditors at the time of liquidation, bankruptcy, and raising funds. The importance of knowing your company’s intrinsic value is as crucial as generating revenue.

Method / Approaches for Valuing a Business

There are three main approaches for valuing a business depending upon the relevancy of each method. As mentioned below:

1. Income Approach

The income approach is also referred to as discounted free cash flow method, which is significantly adopted to value a company’s economic value. In this technique, we determine future cash flows projections and adjustments to get the market value of the business. The DCF method is similar to the earning multiplier technique. In the income approach, the company’s revenue, expenses & tax liabilities are measured in terms of the number of economic gains it can generate for the owner or investor.

2. Market Approach

The market approach is the most rigorous method for knowing the intrinsic value of the company. We analyze the comparable brand’s information within the same sector, transactions in the ideally same region from last year. In this technique, business advisors find differences in competitors’ pricing or earning ratios and other indicators for the subject company. As a result, it is an extremely imprecise means of assessing value, owing to the fact that markets sometimes undervalue companies. Additionally, this is difficult to estimate the extent to which individual company-specific factors influence the most in the market. 

3. Cost Approach

The cost approach, also known as an asset-based approach, is determined by adding together the fair market value (FMV) of its net assets. This method provides the actual value of business assets and the power to liquidate or sell assets by an owner. Typically, this approach is used when a large portion of the assets have a substantial market value.

How do Valuation Reports Reduce Risk Areas?

The valuation reports include comprehensive details and assessments of the company’s major prospects. These reports precisely informed about the current position and value of the company in the local and international market. Valuation reports are useful for investors, financial institutions, banks, and other entities that have shares in the company. This assessment gives reliable and statistical information for better decision-making. Additionally, valuation reports uncover many risk areas and reconsider the different financial dimensions of the business. 

As a part of preparing business valuation reports from a third-party professional chartered accountant is not a bad idea. Our team of business advisors offers financial and accounting services in Dubai, Sharjah, Abu Dhabi, Ajman, and all across the UAE. 

BestaxCA: Business Valuation Consultancy Service

Bestax Chartered Accountants in Dubai help individuals, companies, and investors in determining the net worth of the enterprise. Some of the valuation services that we offer are as follows.

  • Apply modern business valuation methods or techniques
  • Compliance with up-to-date regulatory guidelines
  • Provide transactional and investment opinions
  • Prepare well-informed valuation reports
  • Managing funds and business loans
  • Assistance in the Litigation process
  • Identify potential risks and resolve them

Business Advisory Services in Dubai

BestaxCA is a group of well-qualified business advisors and certified chartered accountants in Dubai. Our firm has been serving domestic and international businesses for more than a decade. We have customized solutions and techniques for valuing your business and shares. The valuation method is applied depending on your requirements. We conduct an intrinsic valuation of your company precisely and accurately for investors and fund managers. 

Call us today to learn more about our professional valuation services in the UAE!

Email: info@bestaxca.com

Call: +971 56 7981808 

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