Overview
Valuation underpins share issuance, transfers, mergers and fundraising. Indian law prescribes valuation requirements for many such transactions, including under FEMA pricing guidelines and the Income Tax Act.
Key points
- Common methods include DCF, comparable companies and net asset value
- Needed for share issue or transfer pricing under FEMA and tax rules
- Supports investor negotiations with a documented, defensible basis
- Reports follow the format and signatory requirements of the applicable law
- Where the law requires a specific registered professional, we coordinate with the appropriately qualified valuer
Typical documents required
- Financial statements and projections
- Cap table and shareholding pattern
- Business plan or pitch deck
- Details of the proposed transaction
How we work
Scoping and purpose of valuation
Data gathering and management discussion
Valuation analysis and report drafting
Delivery and support for investor or regulator queries
Frequently asked questions
Who can sign the valuation report?
It depends on the law and the transaction. We confirm the required signatory up front and arrange it.
How long is a valuation valid?
Validity depends on the regulation. For example, some regulatory valuations must be recent relative to the transaction date.
This page gives general information and is not legal or tax advice. Requirements change, so confirm current rules for your situation with us before acting.