Business valuation Services
Business valuation services Dubai
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business valuation
Here are some of the key reasons your business needs a valuation
Avoid disputes
If you are growing too fast in the market, you must avoid disputes, especially with other businesses. You have to save money on unexpected payouts as listed above.
Fund Raisings
A business valuation will let you know your real business value, if you need any cost to market your business, it will help you know how much exactly investment you need.
Strategic Decisions
Your business needs valuation at the time of bankruptcy when you have to make critical decisions about your future and plan yourself. Strategic decisions will help you to improve your business performance.
benefits
Benefits of business valuation services In Dubai
Ensure proper protection of your assets
You need to ensure your business protection as it operates, you just need to plan your business for unexpected situations. You must protect your business in case of legal cases, disputes, death or divorce case.
Plan your retirement
You are at the age of retirement and want to sell your business? Want to hand it over to someone else? You need business valuation services to get the real value of your company, then you have to proceed with buyer parties. If you will do all this in hurry, you may sell it at a low cost that is not good for you, your employee and your stakeholder.
Understanding your current business
Understanding your business value is an important factor that will help you to quantify where it stands in the market. How far you came till your first day. Results will motivate your employee and you to come forward and work smart to achieve your next goal. This will help your business to touch new heights in the market.
Understand the Potential for Growth
Business valuation services in Dubai will create a baseline for your company firms that will help out to understand your financial goals, marketing strategies and other business objectives. You can increase your potential for growth with business valuations services in Dubai.
Agreement
Agreement with partners
Income approach
When business valuation used the economic principle of exception to determine the value of the business it refers to the income approach. It calculates the returns of the business, that owner can expect in the future of the subject business. After that, expected returns are matched against the risk of receiving them on time
Our approach to valuing businesses
There are three main approaches to evaluating your business. These three approaches have different methods to evaluate your business. These methods depend on different factors that help to generate real value for your business. These three main approaches are as follows.
Asset approach
This approach also refers as the asset approach, replacement cost approach and cost approach. This approach is defined as “the current value of the company = current value of all assets – current value of all liabilities”.
Market approach
This approaches consult the marketplace for business valuations. Sales of a similar business in the market are studied to produce the estimated value of a subject business. This approach is based on the study of competitor businesses whose businesses recently hit the marketplace.These approaches are further divided into methods that refer to business valuation services in Dubai. These methods are as follows
Methods
Methods of evaluation
Market Capitalization
It is the simplest method of business valuation. It is calculated by multiplying the company’s share price by its total number of shares outstanding. What should be the value by putting value into the above formula that would be the market value of your business?
Prior Transactions Method
The prior transactions method utilizes information from the business’s previous acquisitions or transactions as an indicator of value. It is important to figure out the circumstances surrounding the prior transactions of the subject company to ensure the transaction is in benefits both parties.
Earnings Multiplier
This method is used to get a more accurate picture of the realistic value of a business since a business’s profits are a more reliable indicator of its financial success than sales revenue. This method adjusts future profits against cash flow that could be invested at the current interest rate over the same period.
Market Approach (Market comparable)
This approach is based on the study of competitor businesses whose businesses recently hit the marketplace. It further has two main factors that help to calculate real business value.
Discounted Cash Flow (DCF) Method
DCF method is a bit similar to earning multiplier methods. The difference between DCF and the multiplier method is it also takes inflation value to calculate the present value of the business at a time. It depends on future cash flow, then adjusts them and gets a current value of your business.
Asset Approach (Net Asset Value)
The current value of the company is equal to the difference between the current value of all assets and the current value of all liabilities. This approach has two basic methods that will help your business, as Dubai Business Valuation Services.
Book Value
This is the value of shareholders’ equity in a business as shown on the balance sheet statement. The book value is derived by subtracting the total liabilities of a company from its total assets. Book value is the value of shareholders ‘equity in the business. It is the same as shown in the balance statement. When you will subtract the total liabilities of the company from its total assets, you’ll get the book value of your company.
Income Approach
The income approach is further based on two types of business valuation methods. These methods are earning multiplier and discounted cash flow method.
