Valuation is at the core of any financial transaction and forms an integral part of our offering.
- Capturing detailed financial information in the model (at a granular level)
- Reformulating past financial information to unearth the operational performance of the business
- Benchmarking this performance with the industry’s performance and with the business’s past performance
- Identifying key drivers of the business and Combining our financial acumen and industry understanding with management’s expertise to forecast these drivers
- Performing detailed projections of the business’s financial statements in consultation with the management based on the future growth and expansion plans
- Valuing the business based on various methodologies including discounted cash flow method, comparable company analysis method, comparable transaction analysis method, etc.
- Conducting a sensitivity analysis to gauge the impact on valuation upon modification in key valuation assumptions
We perform an in-depth analysis to arrive at the underlying valuation of the company/ division/ asset. The exercise entails preparation of a robust financial model, including:
Our output includes a comprehensive and integrated 3-statement financial model with detailed schedules. The whole exercise provides a two-fold utility - Internal assessment and Transaction-specific opportunities.
From an internal viewpoint, it creates and communicates an important gauge for the value being created. Besides, the financial models that we have built for our clients have also been crucial in their corporate and strategy planning. Being a comprehensive, dynamic and user-friendly model, it can be used to set periodic targets and subsequently benchmark firm’s actual performance. So, while on one hand it can serve to analyze a company’s past performance, it can play an integral role in analyzing growth potential and benchmarking future performance against tangible financial metrics.
Additionally, a valuation exercise often acts as a precursor to exploring and executing subsequent capital (debt as well as equity) raising decisions. Besides, the valuation can be used in other transactions like M&A, JV-establishment, etc.