Valuation

Who Needs Valuation Services

Valuation is not limited to large transactions or listed companies. A wide range of businesses and stakeholders rely on accurate valuations to meet regulatory requirements, support strategic decisions, and maintain financial transparency.

Startups

Startups require valuations for fundraising, ESOP structuring, investor negotiations, and periodic reporting. Accurate valuation strengthens credibility with venture capital firms, angel investors, and accelerators.

SMEs

Small and medium enterprises depend on valuation for strategic planning, bank financing, partner buyouts, and business expansion. A defensible valuation supports long-term growth and better decision-making.

Corporates

Large enterprises need valuation during mergers, acquisitions, divestitures, demergers, restructuring, and joint ventures. Valuation helps determine deal fairness, negotiate effectively, and comply with statutory requirements.

Financial Reporting under IND-AS, IFRS, or US GAAP

Financial reporting standards require fair value measurements for assets, liabilities, intangibles, impairment testing, PPA, and other disclosures. Independent valuation ensures audit-ready compliance.

Tax and Regulatory Compliance

Businesses need valuation for Income Tax Act requirements, FEMA compliance for inbound and outbound investments, and SEBI regulations for listed transactions. Accurate valuation reduces regulatory risk and ensures smooth approvals.

Types of Valuation Services Offered

AccounTX delivers a complete suite of valuation services designed to meet financial reporting needs, regulatory requirements, transactional objectives, and strategic planning goals.

a. Business Valuation

Business valuation determines the fair market value of a company based on its financial performance, market conditions, and future earnings potential.

• Fundraising and investor negotiations
• ESOP valuation
• Shareholder buyouts and partner exits
• Strategic planning and business restructuring

b. Regulatory and Tax Valuation

Valuation aligned with statutory obligations under Indian laws.

• Income Tax Act: Section 56, Section 50CA, capital gains valuations
• FEMA valuations for inbound/outbound investments
• Transfer Pricing valuations
• GST and indirect tax-related valuations
• Companies Act and SEBI/IBC valuations

c. Financial and Equity Valuation

Required for reporting, transactions, and investor communication.

• Equity share valuation
• Convertible instruments: CCDs, CCPS, warrants
• Portfolio valuation for investment entities

d. Intangible and Intellectual Property Valuation

Valuation of intangible assets forms a major component of modern business worth.

• Brand and trademark valuation
• Goodwill valuation
• Patent and technology valuation
• Customer contracts and proprietary processes

e. Real Estate and Fixed Asset Valuation

• Land and building valuation
• Plant and machinery valuation
• Leasehold interest valuation

f. Transaction-Linked Valuation

Valuation plays a key role in deal-making and financial reporting following a transaction.

• Mergers and acquisitions valuation
• Purchase price allocation (PPA) as per IND-AS/IFRS
• Impairment testing for financial reporting
• Fairness opinions for boards and stakeholders

Valuation Methodologies We Use

AccounTX applies globally recognised, audit-ready valuation methodologies aligned with Indian regulatory standards and international best practices. Each valuation is supported by defensible calculations and well-documented assumptions.

Discounted Cash Flow (DCF) Method

DCF is used when future cash flows can be forecasted reliably. It determines the value of a business by calculating the present value of expected future earnings.

Used for:

• Startups preparing for fundraising
• Businesses with stable and predictable revenue
• Project valuations
• ESOP valuation using fair value methods

Why it matters: DCF highlights intrinsic value and is preferred by investors and auditors for forward-looking valuations.

Market Multiples / Comparable Company Analysis (CCA)

This method benchmarks a company against similar businesses in the same industry using valuation ratios.

• EV/EBITDA
• EV/Revenue
• P/E ratios
• Comparable transaction multiples

Why it matters: Reflects real-time market sentiment and is widely used in M&A and fundraising.

Asset-Based Valuation

Determines business value based on tangible assets and net asset value.

• Tangible assets such as land, machinery, buildings
• Replacement cost method
• Net asset value (NAV)
• Liquidation value

Why it matters: Suitable for manufacturing and capital-intensive industries or distressed assets.

Option Pricing Models (OPM)

Used for valuing complex capital structures and convertible instruments.

• Black-Scholes model
• Binomial model

Used for: ESOPs, CCPS, CCDs, warrants, and startups with waterfall distribution structures.

Regulatory Compliance Approaches

These methodologies follow statutory rules and valuation standards required by regulators.

• Income Tax Rule 11UA and 11UB
• FEMA pricing guidelines
• IND-AS 113 fair value measurement framework
• Companies Act and SEBI valuation standards

Used for: Share issuance or transfer, buybacks, FDI/ODI transactions, impairment testing, and liquidation value under IBC.

Technology-Driven Valuation Models

AccounTX enhances valuation accuracy through technology-enabled tools.

• ValAdvisor automated models
• AI-assisted benchmarking systems
• Industry databases for market multiples
• Automated DCF calculation frameworks

These tools strengthen modelling accuracy, audit transparency, and documentation quality.

Industry Verticals We Serve

AccounTX provides valuation services tailored to financial, operational, and regulatory realities of each industry. Different industries have unique value drivers, and our team ensures every valuation reflects those factors accurately.

Technology and SaaS

• Recurring revenue models (ARR, MRR)
• Customer acquisition cost and churn analysis
• IP and intangible asset valuation
• Used for fundraising, ESOP, M&A, and investor reporting

Manufacturing and Industrial

• Asset-heavy operations
• Capacity utilisation and production efficiency
• Working capital and inventory cycles
• Plant and machinery valuation

Real Estate and Infrastructure

• Land and property valuation
• Construction cost and future cash flow estimates
• Rental yield and income models
• Regulatory compliance under RERA and stamp duty laws

Healthcare and Pharma

• Patient flow and recurring revenue models
• Valuation of licences, approvals, and formulations
• Complex cost structures and compliance

Financial Services and Fintech

• Loan book quality for NBFCs
• Revenue per user metrics
• Regulatory oversight under RBI
• Technology and product differentiation

Startups and SMEs

• Fundraising across Seed to Series D
• ESOP pools and convertible notes valuation
• Market comparables and forward-looking methods

AccounTX ensures every sector receives valuation reports aligned with relevant metrics, regulatory standards, and industry expectations.

AccounTX Valuation Process

Engagement and Scoping

We begin with a discovery discussion to understand valuation objectives, regulatory requirements (IND-AS, IFRS, Income Tax, FEMA, SEBI, IBC), and timelines.

Deliverable: Engagement letter and scope document with methodology, assumptions, deliverables, and fees.

Data Collection and Validation

Our team issues a customised data checklist covering financials, projections, contracts, cap table, IP documentation, and asset details. We validate information for completeness and accuracy.

Deliverable: Validated data pack and exception log.

Analysis and Modelling

Analysts prepare valuation models aligned with the selected methodology such as DCF, comparables, asset-based, or OPM.

• Normalisation of historical accounts
• Revenue and cost forecasting
• Working capital and capex analysis
• Discount rate computation
• Sensitivity scenarios

Deliverable: Working valuation model with audit trail.

Independent Review and Quality Control

A senior valuer reviews key assumptions, cross-checks methods, and validates outputs to ensure regulatory and audit readiness.

Deliverable: Internal review memo and final sign-off.

Report Preparation

We prepare a detailed valuation report including scope, methodologies, key assumptions, calculations, sensitivity analysis, and appendices.

Deliverable: Final valuation report (PDF) and supporting model (Excel).

Delivery and Advisory Session

We conduct a walkthrough with stakeholders to explain results, assumptions, and recommended next steps.

Deliverable: Presentation deck and Q&A summary.

Ongoing Support and Updates

Support includes quarterly or event-based valuation updates, audit support, regulatory submissions, and rapid re-runs for future fundraising or negotiations.

Turnaround times vary by scope, and are communicated upfront with clear milestones.

Why Choose AccounTX for Valuation

Certified Valuers with Regulatory Expertise

AccounTX teams include experienced valuers familiar with IBBI standards, Companies Act provisions, Income Tax rules, FEMA compliance, and IND-AS/IFRS frameworks.

Defensible, Transparent, and Audit-Ready Reports

All valuations follow structured model trails, documented assumptions, and thorough internal reviews to ensure readiness for investors, auditors, and regulators.

Industry-Specific Knowledge

Our analysts understand industry nuances such as ARR multiples for SaaS, utilisation metrics for manufacturing, yield models for real estate, and compliance-driven factors for financial services.

Tailored Solutions for Indian and Global Requirements

Valuations are prepared to comply with global standards including IND-AS, IFRS, US GAAP, and international tax and regulatory frameworks.

End-to-End Support Beyond Valuation

We assist with implementation, auditor discussions, investor presentations, and statutory filings, helping businesses use valuation as a strategic decision-making tool.

Frequently Asked Questions

What is business valuation?

Business valuation determines the economic value of a company or asset for fundraising, M&A, regulatory compliance, tax filings, or strategic planning.

Why do investors require valuation reports?

Investors depend on valuations to assess risk, validate projections, negotiate equity, and determine fair pricing.

How long does a valuation typically take?

Most valuations take 5 to 15 working days depending on complexity, data readiness, and regulatory requirements.

What documents are needed for valuation?

Common documents include financial statements, projections, cap table, asset details, business plans, and regulatory filings. Requirements vary by valuation purpose.

How are valuations used for tax compliance?

Valuations are required for share allotments, transfers, ESOPs, and international transactions under the Income Tax Act to ensure accurate tax calculation and prevent disputes.

Which valuation standards does AccounTX follow?

Standards include IND-AS, IFRS, IBBI guidelines, Income Tax Rules, FEMA regulations, and global best practices.

Does valuation differ for startups and mature companies?

Yes. Startups rely more on forward-looking methods like DCF or OPM, while established firms use earnings multiples, asset-based methods, or blended approaches.

Can valuation impact fundraising or negotiations?

A defensible valuation strengthens negotiation power, reduces dilution, and builds confidence with investors and acquirers.

Take the Next Step with AccounTX

AccounTX provides complete valuation support across transactions, financial reporting, regulatory compliance, and strategic planning. Our audit-ready, defensible, and transparent reports help businesses make informed decisions with confidence. Whether you are raising capital, planning an acquisition, issuing shares, or fulfilling statutory obligations, our team ensures your valuation is accurate, compliant, and aligned with global standards.

Get Expert Valuation Support

• Book a consultation to discuss your valuation requirements
• Request a customised valuation proposal based on your business model
• Get support for financial reporting under IND-AS or IFRS
• Receive guidance for investor negotiations, ESOP planning, or M&A transactions

Simply connect with AccounTX to ensure your valuation is professionally executed, fully compliant, and strategically useful.