Business & Asset Valuation Services
A valuation puts a defensible number on a whole business, a division, or assets such as land, buildings and plant. We prepare and coordinate business valuation services for sales, mergers, investors and family separations. Where the law needs a registered valuer, a qualified IBBI-registered valuer signs.
What it is
Business valuation services start with an estimate of what a running business is worth on a given date, from the cash it can earn, the assets it owns and what buyers pay for similar businesses. Asset valuation does the same for a single asset or a group of them, such as a factory building, a plot or a line of machines.
When the law demands a valuation, Section 247 of the Companies Act, 2013 and the Companies (Registered Valuers and Valuation) Rules, 2017 decide who may sign it. It must be a valuer registered with the Insolvency and Bankruptcy Board of India (IBBI) in the right asset class: land and building, plant and machinery, or securities or financial assets. If you only need a price for your shares, see our separate share valuation report page.
Who it applies to
You are selling or buying a business
A promoter selling a stake, a buyer pricing a takeover after due diligence, or two companies fixing a merger ratio.
Your company is trading assets with a director
Buying land or machinery from a director, or selling assets to one, needs a registered valuer’s figure under Section 192.
Your family or partners are separating
Picture two brothers who run the Faridabad packaging unit their father started. Before they split it, each needs to know what his half is worth, and a neutral number keeps the peace.
Why it matters
Agree on one number
When the method and assumptions are written down, a negotiation is about figures you can test, not opinions.
Pass the legal test first time
Shareholder approvals, merger schemes, insolvency processes and foreign investment all expect a valuation from the right professional.
Answer tax officers and lenders
Income-tax law and FEMA pricing rules both test deals against fair value, and lenders ask how a number was reached. A documented valuation gives them the working.
Which valuation the law asks for
| Situation | What is required | Who signs |
|---|---|---|
| Non-cash deal with a director (Section 192) | Shareholder approval in general meeting; notice states the asset value | Registered valuer |
| Merger or demerger (Section 232) | Valuation report and share exchange ratio sent to members | Expert, in practice a registered valuer |
| Shares issued for non-cash consideration | Valuation of the asset received, filed with PAS-3 | Registered valuer |
| Insolvency (CIRP under the IBC) | Fair value and liquidation value of the corporate debtor | Two sets of registered valuers appointed by the resolution professional |
| Issue or transfer of shares to or from a non-resident (FEMA) | Fair value on an internationally accepted method | CA, SEBI-registered merchant banker or practising cost accountant |
| Sale, investor talks, family separation | No statutory format; a reasoned report | Chartered accountant or valuer of your choice |
In the last row the law is silent, so the method and the valuer are your choice.
Documents required
Financial records
- Audited financial statements for the last three years
- Latest provisional accounts
- Income-tax returns and GST returns
Plans and projections
- Business plan and projections for three to five years
- Order book, key contracts and customer concentration
- Capital expenditure plans
Asset details
- Title deeds and site plans for land and buildings
- Fixed asset register with purchase dates and costs
- Shareholding pattern and loan agreements
How it works
Fix the purpose and the valuation date
The purpose decides who can sign. We agree the valuation date and scope in writing before any numbers are run.
Study the business and its numbers
We collect and organise three years of accounts, flag one-off items and check the projections against past performance.
Apply more than one method
Usually discounted cash flow, net asset value and market multiples. In practice the business decides the weight: a Gurugram software firm with few fixed assets is valued on its cash flows, while a foundry’s land and plant pull net asset value to the front.
Bring in the registered valuer where needed
Where Section 247 applies, we coordinate an IBBI-registered valuer in that asset class, who inspects and signs their part.
Receive the report and walk through it
The report states the purpose, valuation date, sources, procedures and caveats, as Rule 8 of the Valuation Rules requires, and we take you through it.
Timelines
Fixed once the scope is agreed
Timing depends on the purpose, the asset classes and the valuer’s calendar. Site inspections for land and plant add time. We give a date when we scope the work.
PAS-3 within 30 days of allotment
Where shares are issued for an asset, the registered valuer’s report is attached to Form PAS-3, due within 30 days of allotment.
IBC valuers by the 47th day
In insolvency, the resolution professional appoints the valuers within seven days of their own appointment, and no later than the 47th day from the insolvency commencement date.
What happens if the valuation is wrong or missing
The transaction can be undone
An arrangement with a director made without Section 192 approval is voidable at the company’s option, subject to limited exceptions.
Tax follows the fair value
If shares are received below their fair market value, the shortfall above ₹50,000 can be taxed in the recipient’s hands, with exemptions such as gifts from relatives.
The valuer is penalised
Section 247(3) provides a penalty of ₹50,000 for a valuer who breaks the rules; with intent to defraud, imprisonment up to one year and a fine of ₹1 lakh to ₹5 lakh.
Frequently asked questions
What is the difference between business valuation and share valuation?
Business valuation services price the whole enterprise or a division, before deciding how that value splits among shareholders and lenders. Share valuation takes the equity value and works out a price per share for an allotment or transfer. If your only question is the price for issuing or transferring shares, our share valuation report service is the shorter route.
Who can sign a valuation report in India?
It depends on the purpose. Where the Companies Act or the IBC requires a valuation, only a valuer registered with IBBI under Section 247, in the right asset class, can sign. For foreign investment pricing under FEMA, a chartered accountant, a SEBI-registered merchant banker or a practising cost accountant can certify. We match the signatory to the purpose at the start; the qualified professional signs, we prepare and coordinate.
Which valuation methods do you use?
The valuer usually applies at least two of three approaches. Discounted cash flow values future cash flows; net asset value adds up assets less liabilities; market multiples compare with similar listed companies or deals. A loss-making or asset-heavy unit leans on net assets. The report explains which method we relied on and why.
Do I need a registered valuer for land and machinery?
Yes, whenever the valuation is required under the Companies Act or the IBC. Land and building, and plant and machinery, are separate IBBI asset classes, so each needs a valuer registered in that class. A business valuation that includes a factory may therefore have more than one signatory. For a private purpose the law does not insist, though banks and buyers give a registered valuer’s figure more weight.
How long is a valuation report valid?
A valuation speaks as of its valuation date, and the law sets no fixed shelf life for most purposes. In practice, buyers and regulators expect a date close to the transaction. If the business changes materially after that date, update the report. We advise on the right date when we scope the work.
Is a valuation needed when a company buys property from its director?
Yes. Say your company wants to buy the warehouse a director owns. Section 192 of the Companies Act requires prior approval by shareholders in a general meeting for such a non-cash deal, either way round. The notice for that meeting must state the value of the assets as calculated by a registered valuer. Get the valuation before calling the meeting and the approval goes through cleanly.
How is valuation used in a merger?
It fixes the share exchange ratio. Under Section 232, members receive the expert’s valuation report and the directors’ report on the ratio, including any special valuation difficulties. Both companies are valued on a common date and method, as part of the wider merger process. Here is the catch: a ratio that looks generous to one side invites objections at the NCLT, so we arrange the valuation of both companies before the scheme is drafted.
What does a valuation report contain?
Rule 8 of the Companies (Registered Valuers and Valuation) Rules, 2017 lists the core contents. These include the purpose, the valuer’s identity and independence, the valuation date, the sources of information, the procedures followed, the methods, the conclusion and any caveats or limitations. We ask for the same structure in non-statutory valuations too, so any reader can check the working.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
A valuation carries no government fee. Filing fees apply only to any form the valuation supports, such as PAS-3.
Ready to begin?
Tell us why you need the valuation and as of which date, and we will tell you who must sign it and how long it will take.