Business Valuation Services in Abu Dhabi
Whether you're looking for an Angel investors who can invest their own money in your emerging business, acquisition, or taxation, or know the value of your startup, our team of experienced certifed valuers are here to provide expert advice on all aspects of business valuation.
Business Valuation Services in Abu Dhabi
Business valuation is a vital component in every business establishment. This determines whether they are equipped for the industry or if they pass the economic value standard that goes into every company. It may sound complicated but this process is needed in order to know the worth of businesses in the industry. On the other hand, there are many categories to this as well. Business valuation is also about sale value, taxation or even expanding a business and potentially adding another shareholder. If you are looking for business valuation firms in Dubai, then you’ve come to the right place with Credence & Co.
Most companies should have a business valuation. It’s a way of building a solid foundation for their establishment in order to not just be known, but to also make their mark in the industry they’re in. This is important because it also influences how a business should be. Such steps are critical as well in order for you to understand how your business creates value. Business valuation in Dubai has certain procedures that every firm should follow. In the case of Credence & Co., we apply the IPEV (International Private Equity Valuation) compliant guidelines to deliver 5 internationally acknowledged methods. Unlike other business valuation companies in Dubai, our methods deviate from the norm because we only want what’s best for you. We make sure to determine your business’s worth and have every possible solution at our hands for your business. Credence & Co. also values uniqueness in every engagement, therefore we always seek ways to create a better experience and service for our clients. As experts in the field, we take these matters into our hands and translate them into value-added opinions for your worth.
Choose Credence & Co. today for your business valuation services in Dubai. We have a remarkable reputation with our clients and a proven track record of satisfied companies that acquired our services. Amidst the other leading valuation companies in Dubai, we stand out because we have a different method which sets us apart from the rest. Our highly-skilled team of business professionals will be with you every step of the way and guide you on all the necessary processes. Their significant experience and expertise is guaranteed to create insights, informed opinions and judgments on company valuation.
Inquire today and let Credence & Co. help you with business valuation services in Dubai. Our representatives will be more than happy to provide you with the necessary information regarding your queries.
Methods and Techniques
15 Years of Experience, Our Team has the Knowledge and Expertise to Ensure Professional, Accurate, High Quality Service
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We are offering a broad appraisal and inspection advisory to clients. All measurements are carried out following the RICS Property Measurement Professional Statement 2nd Edition as issued by the Royal institution of chartered surveyors. We constantly consider the current market trends and apply best practices in the United Arab Emirates.
1. Asset-Based Valuation: Asset-based valuation is a fundamental method that calculates the worth of a business by tallying its assets and subtracting its liabilities. This approach is particularly pertinent for businesses with substantial tangible assets, such as manufacturing companies or real estate ventures. The valuation equation is simple yet insightful: Business Value = Total Assets - Total Liabilities
2. Market-Based Valuation: Market-based valuation, also known as Comparable Company Analysis (CCA) or Market Multiples Approach, draws parallels between the subject business and comparable firms that have been sold or are publicly traded. This method relies on critical financial metrics like the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, or enterprise value-to-EBITDA (EV/EBITDA) ratio to gauge the relative value of the business in the market.
3. Income-Based Valuation: Income-based valuation methods assess the present value of a business based on its income-generating potential. Unlike asset-based or market-based approaches, which focus on past or current performance, income-based methods project future cash flows and discount them to present value. Several techniques fall under this category: -
Discounted Cash Flow (DCF): DCF is arguably the most widely used income-based valuation method, emphasizing the time value of money. It forecasts the business's future cash flows, applies a discount rate to adjust for risk and opportunity costs, and calculates these cash flows' net present value (NPV). DCF requires meticulous financial projections and entails subjective assumptions regarding growth rates, discount rates, and terminal values.
- Capitalization of Earnings: This method capitalizes the business's expected earnings by dividing them by an appropriate capitalization rate. The capitalization rate reflects the investor's required rate of return and the perceived risk associated with the business. Capitalization of earnings simplifies valuation by converting future earnings into a single present value, making it suitable for stable, income-generating companies.
- Capital Asset Pricing Model (CAPM): CAPM is a sophisticated method that estimates the expected return on equity based on the risk-free rate, market risk premium, and beta coefficient of the business. By quantifying the systematic risk inherent in the industry, CAPM determines the discount rate for cash flows, enabling a rigorous valuation analysis. CAPM is favored for its ability to incorporate market and company-specific risks into the valuation framework.
4. Replacement Cost Valuation: Replacement cost valuation estimates a business's value by calculating the cost of replacing its assets at their current market value. Unlike traditional asset-based valuation, which considers historical costs, replacement cost valuation accounts for current market conditions and the business's specific asset requirements. This method is particularly relevant for asset-intensive industries like construction, utilities, or infrastructure development.
5. Liquidation Valuation: Liquidation valuation appraises the worth of a business in the event of its liquidation or cessation of operations. It involves selling off all the business's assets, settling its liabilities, and distributing any remaining proceeds to the stakeholders. Liquidation valuation is typically used as a worst-case scenario analysis, highlighting the minimum value that creditors or investors can expect to recover in business failure.