Business Valuation Services in Dubai, UAE

There are many reasons why a business owner or company needs to know the value of a business – to sell or buy a business, settlement on litigation, capital restructuring, expansion of business, etc.

Business valuation demands high-level financial analysis that should be undertaken by a qualified valuation professional with the appropriate credentials. Business owners who seek a low-cost business valuation are seriously missing out on the important benefits received from a comprehensive valuation analysis and valuation report performed by a valuation expert. These benefits help business owners negotiate a strategic sale of their business to get a fair price, minimize the financial risk of the management in litigation, etc.

How to price a company?

Business valuation refers to the process of determining the current worth of a company and there are many techniques used to determine value. The typical standard of value utilized is fair market value. The fair market value is the price at which a business would change hands between an independent buyer and seller having the requisite knowledge and facts, not under any undue influence, and having access to all of the information to make an informed decision. An analyst placing a value on a company looks at the company’s management, the composition of its capital structure, the prospect of future earnings, and the market value of assets, etc.

It’s a common misperception to say that the company is worth these many times EBITDA (earnings before interest, taxes, depreciation, and amortization) simply, as that doesn’t take into consideration the industry, business risks, cash flow expectation, debt, and more. So, it is always advisable to do the business valuation by a valuation expert. Not knowing the actual fair market value of the business could cause the business owner to sell the business for a lesser price or buy a business at a high price than it actually worth. For these reasons, the cost to do the business valuation can be an excellent investment. Sometimes it may be savings in millions by paying the right price or by taking the right decision not to invest in an unworthy business.