A valuation that results from a good, carefully prepared, and realistic business plan prepared with the help of transaction and valuation services in Delhi makes lenders trust you and grant the desired financing.
Of course, you will have to defend your positions, give details on such a point, and demonstrate that you have considered several hypotheses and that the one that has been adopted seems the most realistic.
Have you not been too optimistic? It should be noted that you have been very careful during the valuation of your business the numbers are not inflated to please and get funding.
Transaction and valuation services in Delhi put businesses in a favorable position to obtain the necessary credits to finance new investments.
Bring financial partners into the capital
If you manage a company with high potential or “gazelle”, you must resort to increasingly important financing. To raise funds, you will undoubtedly turn to organizations whose object is to take stakes in companies in the hope of benefiting in the short term (2 or 3 years) more -values when the securities are resold.
These financiers will carry out an in-depth study of your company (profitability, financial strength, development potential). It will be all the easier for you to negotiate with them if you have already done the evaluation process on your side by choosing transaction and valuation services in Delhi.
Be ready to respond to any possible proposal
In an uncertain economic environment where it is difficult to manage and plan for the long term, the business leader must be prepared to react quickly if an opportunity arises.
Valuing your business also helps in the event of a partnership or takeover proposal that may emanate, for example, from suppliers or even competitors.
Validity of valuation methodologies
It is very important to clarify that the validity of each of the business valuation methods will depend directly on the state of development of the company being analysed.
It is very common for valuation techniques to be used when the transaction involves a company that already has a history, that usually has a sustained operation over time and that has demonstrated a certain capacity to generate value.
However, for companies that are in very early stages, such as start-ups, the validity of normal valuation methodologies can run certain risks.
Valuations are usually used as a reference, but at the time of negotiation, other factors will surely have more weight, such as the value milestones that the start-up has generated in its time of existence, the founding team, the scalability of the business, among others.
In addition, it is very important to say that the valuation of a company is also the result of the negotiation between the parties involved in the transaction and, therefore, the methodology is a way of justifying them and setting a starting point for said negotiations.
Do you already know the value of your company? If not and you need more information, then transaction and valuation services providers can help you.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by
CA Aman Aggarwal
AKGVG & Associates