A business valuation is generally performed to provide a fair value on a business or entity. Some of the more common purposes of a business valuation include internal business planning, business sale and purchase, mergers and acquisitions, shareholder buyout and divorce proceedings.
A professional business valuation will help in the negotiation of a business purchase and sale, secure credit loan, buyout a shareholder, settle a legal dispute, fulfil taxation purposes, or even for management’s internal use. It gives all parties involved a detailed understanding of the value of a business, which ultimately assists in strategic decision making.
By International Financial Reporting Standards definition, Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Our valuation reports are prepared according to standards set by the International Valuation Standards Council (IVSC), which is also the standard adopted by the Institute of Valuers and Appraisers of the Singapore Accountancy Commission in Singapore.
Every business is unique; there is no definitive way to immediately prescribe a certain method. There are three main valuation approaches that are used to value businesses.
They are the income approach, market approach and cost approach. It is important that the valuer considers all approaches and chooses the most appropriate one for a respective business. There are cases where multiple approaches are required to be used, to provide a fair estimation of value.
In general we require to see past and current financial statements (profit and loss + balance sheet), and answers to our questionnaire form to help us understand your business in greater detail. Upon engagement of our service, our business valuer will inform you of the specific documents and information to prepare.
Our process is straightforward. In most cases, we will conduct initial consultation via email/telephone/face to face to understand more about your business and the purpose of the valuation.
Once you have decided, you will receive our service agreement and invoice. The engagement begins upon payment*. Next, we will request specific documents and information from you to perform the valuation. The valuation work will usually take about 2 to 3 weeks.
After which, the first draft of valuation report will be emailed to you. During this time, we will discuss the valuation with you, revisions may be necessary. Also we will explain and go through the valuation report with you.
Lastly, we can mail to you a physical hard copy of the valuation report at your request.
*For fees less than $3,501, our invoice has to be paid in full. For fees above $3500, we accept 50% initial payment and the balance to be paid prior to delivery of the valuation draft report.
Depending on the complexity and requirements of the valuation case, the valuation fees will vary. We choose to base our fees on a flat fee basis, so you have the assurance and comfort knowing of the costs before engaging our services.
You can get a general estimate of our fee in the Quote calculator in the section below on this page.
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