{"id":2122,"date":"2022-01-10T10:16:08","date_gmt":"2022-01-10T10:16:08","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=2122"},"modified":"2022-01-11T04:37:17","modified_gmt":"2022-01-11T04:37:17","slug":"how-do-i-know-how-much-my-organization-is-worth-and-for-what","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/","title":{"rendered":"How do I know how much my organization is worth and for what?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2123\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/01\/How-do-i-know-how-much-my-organization-is-worth-and-for-what.jpeg\" alt=\"How do i know how much my organization is worth and for what\" width=\"1000\" height=\"1000\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/01\/How-do-i-know-how-much-my-organization-is-worth-and-for-what.jpeg 1000w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/01\/How-do-i-know-how-much-my-organization-is-worth-and-for-what-300x300.jpeg 300w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/01\/How-do-i-know-how-much-my-organization-is-worth-and-for-what-150x150.jpeg 150w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/01\/How-do-i-know-how-much-my-organization-is-worth-and-for-what-768x768.jpeg 768w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/01\/How-do-i-know-how-much-my-organization-is-worth-and-for-what-230x230.jpeg 230w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><strong>Transaction and valuation services in Delhi <\/strong>allow estimating the value of a company to carry out purchase and sale operations, mergers, capital increases, or any other type of transaction that requires decision-making at a strategic level.<\/p>\n<p style=\"text-align: justify;\">First,\u00a0<strong><a href=\"https:\/\/www.akgvg.com\/transactions-and-valuations.php\" target=\"_blank\" rel=\"noopener noreferrer\">transaction and valuation services in Delhi<\/a>\u00a0<\/strong>are key to differentiating between the price and the value of a company. Price is a target amount that the seller and buyer agree to move forward in a transaction. Instead, value is a subjective concept because the same company can have a different valuation for each of the parties.<\/p>\n<p style=\"text-align: justify;\">For example, the price of the purchase and sale of a company will be in an average amount of the values \u200b\u200bthat each party has attributed to it. However, the transaction may eventually be closed at a higher price by the buyer&#8217;s valuation by conducting a thorough analysis of other factors (such as industry projections, economies of scale, etc.).<strong>\u00a0<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/#What_is_the_business_valuation_for\" >What is the business valuation for?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/#Trading_on_the_stock_market\" >Trading on the stock market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/#Exchanges_between_shareholders\" >Exchanges between shareholders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/#Corporate_continuity\" >Corporate continuity<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/#Contests_of_creditors_and_arbitration_processes\" >Contests of creditors and arbitration processes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/#Capital_increases\" >Capital increases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.akgvg.com\/blog\/how-do-i-know-how-much-my-organization-is-worth-and-for-what\/#Stocks_buying_and_selling\" >Stocks buying and selling<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"What_is_the_business_valuation_for\"><\/span>What is the business valuation for?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Although the first operation that is usually thought of when talking about business valuation is the purchase or sale, this is not the only one. There are many other situations in which it is necessary to know the value of a company. Let&#8217;s see some cases:<strong>\u00a0<\/strong><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Trading_on_the_stock_market\"><\/span>Trading on the stock market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Either to analyse is the price at which companies should be listed on the stock market, or for when a company wants to go public and must put an initial price on its shares, or for when we want to buy or sell shares of a company that listed on the stock exchange, they are decisions that are made after one or more valuation methods.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Exchanges_between_shareholders\"><\/span>Exchanges between shareholders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The valuation of different companies that are shared by common corporate groups is very useful to establish and specify equations for the exchange of shares.<strong>\u00a0<\/strong><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Corporate_continuity\"><\/span>Corporate continuity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">It is key to assess the company to make strategic decisions regarding how to continue a business, what to sell, whether a merger is profitable, or whether or not it is convenient to continue obtaining cash flow from certain operations.<strong>\u00a0<\/strong><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Contests_of_creditors_and_arbitration_processes\"><\/span>Contests of creditors and arbitration processes<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">If a company is in default or going through some judicial process, it is important that it be fairly valued in order, for example, to pay compensation if applicable.<strong>\u00a0<\/strong><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Capital_increases\"><\/span>Capital increases<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">If a company needs financing and has decided that carrying out a capital increase is the best way to do it, then it will be necessary to value the company to define how much money will enter the company in exchange for part of its shares.<strong>\u00a0<\/strong><\/p>\n<h4 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Stocks_buying_and_selling\"><\/span>Stocks buying and selling<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"text-align: justify;\">If a shareholder of a company is interested in selling their shares, then it will be necessary to value the company to define the amount that the one who buys will transfer to the one who sells. These are just some cases in which a company, no matter its size or its turnover levels, should apply methods to know the real value of the company.<\/p>\n<p style=\"text-align: justify;\">This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. <a href=\"https:\/\/www.akgvg.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>AKGVG &amp; Associates<\/strong><\/a> does not intend to advertise its services through this.<\/p>\n<p style=\"text-align: justify;\">Posted by:<\/p>\n<p style=\"text-align: justify;\">CA Aman Aggarwal<\/p>\n<p style=\"text-align: justify;\">AKGVG &amp; Associates<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Transaction and valuation services in Delhi allow estimating the value of a company to carry out purchase and sale operations, mergers, capital increases, or any other type of transaction that requires decision-making at a strategic level. First,\u00a0transaction and valuation services in Delhi\u00a0are key to differentiating between the price and the value of a company. Price&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[562,552],"class_list":["post-2122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit-services","tag-transaction-and-valuation","tag-transaction-and-valuation-services"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=2122"}],"version-history":[{"count":2,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2122\/revisions"}],"predecessor-version":[{"id":2127,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2122\/revisions\/2127"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/2123"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=2122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=2122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=2122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}