Valuation Services 

Establishing Business Worth with Precision and Compliance

Valuation is essential for various business decisions such as fundraising, mergers, acquisitions, ESOPs, buy-backs, dispute resolution, and regulatory compliance. Accurate valuation gives stakeholders clarity on enterprise worth and forms the foundation for strategic growth, investment, or exit.

What It Means

·       Business Valuation: Determining the fair value of a company or its assets.

·       Share Valuation: Assessing the price of equity shares, preference shares, or convertible instruments.

·       Asset Valuation: Valuing tangible or intangible assets like land, machinery, IP, or goodwill.

Governing Laws & Framework

·       Companies Act, 2013 (Section 247 – Registered Valuers)

·       SEBI Regulations (ICDR, SAST, LODR – for listed companies)

·       Income Tax Act (Rule 11UA/11UB for share valuation)

·       FEMA (Pricing Guidelines for FDI/ODI transactions)

·       IBBI (Registered Valuers) Rules, 2017

Process

1.     Understanding purpose of valuation (transactional, regulatory, internal)

2.     Data collection and review of financials, business plans, agreements

3.     Selection of appropriate valuation methodology (DCF, NAV, CCA, etc.)

4.     Drafting detailed valuation report with assumptions and disclaimers

5.     Certification by Registered Valuer (where mandated)

6.     Filing and usage in relevant transactions (e.g., ROC, SEBI, Income Tax, RBI)

Key Benefits

·       Provides objective value for negotiation or compliance

·       Enhances credibility with investors, lenders, and regulators

·       Reduces tax or regulatory risks in share or asset transactions

·       Facilitates capital structuring and exit planning

Ideal For

·       Companies raising funds or issuing shares

·       Businesses undergoing restructuring or conversion

·       Founders executing ESOPs, buy-backs, or M&As

·       Enterprises dealing with cross-border share transfers or FDI

Basic Requirements

·       Audited financial statements

·       Projected business plans and cash flows (if applicable)

·       Shareholding pattern and cap table

·       Access to agreements and board/shareholder approvals

How LTC can help

·       Identification of right valuation purpose and methodology

·       Liaison with IBBI-registered valuers

·       Structuring valuations to meet regulatory, investor, or internal needs

·       Integration with legal documentation (e.g., SSA, SHA, PAS-3, etc.)

·       Advisory on tax, FEMA, and Companies Act implications