Share / Business Valuation
Share/ Business Valuation
Successful businesses develop strategies for long-term growth and sustainability. Such strategies include merger,acquisition, and strategic alliance and so on.
To implement those strategies, it is necessary to recognize the best-estimated value of each business .
The different reasons for business valuation are as follow :
- For quoted/ listed companies, when there is a takeover bid and the offer price is an estimated “fair value” in excess of the current market price of the shares.
- For unquoted companies, when :
- The company wishes to “go public” and must fix an issue price for its shares
- There is a scheme of merger with another company
- Shares are sold
- Shares need to be valued for the purposes oftaxation
- Shares are pledged as collateral for a loan and the bank wants to put a value to the collateral
- Another company is proposing to take over the unquoted company by making an offer to buy all its shares
- For subsidiary companies, when the group’s holding company is negotiating the sale of the subsidiary to a management buyout team or to an external buyer
- For any company, where a shareholder wishes to dispose of his or her holding.
During business valuation, there will be great loss forthe owners if the hidden assets such as distribution network, brand name, internal operation system and human assets are not considered. According to inter national practice, there are three different ways in calculating the value of business and a particular value range will be identified. Therefore there will be indexes for negotiation between seller and buyer.
The organisations that Excellent Choice Professional Company Limited provided Share I Business Valuation Service are mentioned in client lists as separate pages.