Capital. Strategy. Execution.

Valuation

The appropriate approach to valuation depends on the question being asked.

Understanding Value in Context

The appropriate approach to valuation depends on the question being asked.

The value required for a fundraising exercise may differ from the analysis required for a transaction, restructuring, ESOP or regulatory purpose.

We help clients assess value in the context of:

Business valuation
Equity valuation
Transaction valuation
Fund-raising
M&A
ESOP-related valuation
Corporate restructuring
Regulatory and compliance requirements
Fairness-related analysis, where applicable

Our objective is to provide a clear, reasoned and appropriately supported valuation framework for the decision at hand.

Roadmap

Understand → Analyse → Benchmark → Conclude

The methodology is determined by the nature and purpose of the assignment rather than applying a single approach to every situation.

01
Understand
Define the purpose of the valuation, the subject being valued, relevant ownership or transaction circumstances and the applicable requirements.
02
Analyse
Assess the company's financial performance, business model, assets, cash flows, growth prospects, risks and capital structure.
03
Benchmark
Consider relevant market data, comparable companies, comparable transactions and other appropriate reference points.
04
Conclude
Develop a valuation view supported by the selected methodology, assumptions and transaction context.

Enterprise value and equity value

Enterprise Value & Equity Value

Understanding the Value of the Enterprise

Business valuation involves assessing the economic value of a business based on its underlying fundamentals and future potential.

Our analysis may consider:

Historical financial performance
Revenue and profitability
EBITDA and margins
Cash generation
Working capital
Capital expenditure
Business model
Industry dynamics
Competitive position
Growth prospects
Customer concentration
Management capabilities
Business risks
Capital structure

The objective is to develop a valuation framework that reflects both the current business and its expected future performance.

Enterprise Value & Equity Value

From Enterprise Value to Shareholder Value

Equity valuation focuses on the value attributable to shareholders after considering the company's capital structure and relevant adjustments.

Depending on the assignment, the analysis may consider:

Enterprise value
Equity value
Debt and debt-like items
Cash and investments
Minority interests
Other relevant adjustments
Number and class of securities
Ownership interests

Equity valuation can support decisions involving investments, transfers, fundraising, restructuring and other corporate actions.

Valuation Methodologies

Applying the Right Framework

Depending on the nature of the assignment, valuation may involve one or more approaches.

Discounted Cash Flow

Assessing the present value of expected future cash flows based on appropriate operating and financial assumptions.

Market Approach

Benchmarking the business against relevant listed companies and market multiples.

Transaction Approach

Considering valuations observed in comparable transactions where relevant data is available.

Asset-Based Approach

Assessing the underlying value of assets and liabilities where appropriate to the nature of the business.

Other Appropriate Approaches

The methodology may be adapted based on the business, purpose of valuation, available information and applicable requirements.

The selection of methodology is an important part of the valuation conclusion.

Market and Transaction Benchmarks

Value in the Context of a Transaction

Transaction value can be influenced by more than standalone financial performance.

We analyse factors such as:

Strategic rationale
Control
Ownership percentage
Synergies
Growth expectations
Market conditions
Transaction structure
Buyer and seller considerations
Comparable transactions

The objective is to understand value within the specific circumstances of the transaction.

Valuation for each purpose

Capital raising & IPOsM&AESOPsRestructuring

Valuation for Capital Raising & IPOs

Valuation Before Capital

Valuation is often central to a fundraising decision.

We help companies and shareholders evaluate the implications of different valuation scenarios across:

Capital requirement
Pre-money valuation
Post-money valuation
Equity dilution
Investor ownership
Existing shareholder value
Future funding requirements
Capital structure

The analysis can support discussions with strategic investors, private capital providers and other potential sources of funding.

Valuation for M&A

Understanding the Value of an Acquisition

In an acquisition, value can differ between the standalone business and the value it creates for a particular buyer.

Our analysis may consider:

Standalone business value
Comparable companies
Comparable transactions
Strategic premium
Synergies
Cost savings
Revenue opportunities
Integration considerations
Funding requirements

This helps acquirers and sellers understand the economic basis of a transaction and evaluate potential deal structures.

Valuation for ESOPs & Corporate Actions

Valuing Employee Ownership

ESOP-related valuation requires consideration of the underlying business, ownership structure and relevant transaction context.

Depending on the assignment, analysis may involve:

Business or equity value
Capital structure
Employee ownership pool
Dilution
Share class considerations
Existing shareholder interests
Future funding and liquidity considerations

We provide valuation-related analysis in connection with ESOP and employee ownership matters, subject to the applicable requirements of the assignment.

Valuation for Corporate Restructuring

Valuation Through Change

Corporate restructuring can involve significant changes to ownership, assets, businesses or capital structures.

Valuation may be relevant in:

Business transfers
Mergers
Demergers
Group restructuring
Ownership reorganisation
Strategic investments
Shareholder realignment
Other corporate reorganisations

We help establish a structured valuation framework for the relevant assets, businesses or securities involved.

Framework and independence

Reporting, Assumptions & Limitations

Valuation With the Right Framework

Certain corporate transactions and regulatory situations may require valuation or valuation-related analysis under applicable laws, regulations or exchange requirements.

Depending on the assignment, this may involve consideration of:

Applicable regulatory framework
Transaction structure
Securities involved
Relevant valuation date
Ownership considerations
Applicable methodology
Required documentation
Regulatory and corporate approvals

The scope and methodology are determined based on the specific purpose and applicable requirements.

Reporting, Assumptions & Limitations

An Independent Perspective Where Applicable

In certain transactions, stakeholders may require an independent assessment of the financial implications of a proposed transaction.

Where applicable, fairness-related analysis may consider:

Transaction consideration
Valuation methodologies
Financial parameters
Comparable companies
Comparable transactions
Transaction structure
Relevant market information

Such analysis is intended to provide an additional perspective for the relevant stakeholders and should be understood in the context of the specific assignment and applicable requirements.

The Questions Behind the Number

One Discipline. Different Questions.

A meaningful valuation should help answer:

What is being valued?

Business, enterprise, equity, securities, assets or a transaction interest.

Why is it being valued?

Fundraising, transaction, restructuring, regulatory, ownership or another purpose.

What information supports the valuation?

Historical performance, forecasts, market data and transaction information.

Which methodology is appropriate?

The approach should reflect the nature and purpose of the assignment.

What assumptions drive the value?

Growth, margins, cash flows, capital requirements, risk and market parameters.

How sensitive is the conclusion?

Changes in key assumptions can materially influence valuation outcomes.

From Question to Conclusion

01
Purpose & Scope
Define the valuation objective and relevant requirements.
02
Business Understanding
Understand the business, industry, financial profile and strategic position.
03
Financial Analysis
Review historical performance, forecasts and key value drivers.
04
Methodology
Identify appropriate valuation approaches.
05
Market Benchmarking
Analyse relevant market and transaction data.
06
Valuation Analysis
Apply the selected methodology and assess relevant assumptions.
07
Sensitivity & Cross-Checks
Evaluate key assumptions and alternative valuation perspectives.
08
Conclusion
Develop the valuation conclusion and supporting analysis.

Valuation With Transaction Context.

Financial Discipline

We approach valuation through structured financial and business analysis.

Transaction Perspective

Our valuation work is informed by understanding of fundraising, M&A and capital-market transactions.

Market Awareness

We consider relevant market benchmarks and transaction data where appropriate.

Purpose-Driven Methodology

The valuation framework is selected based on the specific purpose and circumstances of the assignment.

Independent Perspective

We provide an objective analytical perspective for management, shareholders and transaction stakeholders.

Decision Orientation

Our objective is not simply to produce a number, but to help clients understand the implications of value for the decision they are making.

Supporting Important Corporate Decisions

We work with:

Valuation may form part of a broader corporate advisory, fundraising, M&A or capital-market mandate.

Promoters
Founder-led businesses
Listed companies
Unlisted companies
Shareholders
Private equity investors
Strategic investors
Corporate groups
Boards and management teams

01When is a valuation required?