Understand the Value Behind Your Business, Transaction or Strategic Decision
Business valuation support for owners, investors and management teams that need a structured view of business value for funding, transactions, restructuring, ownership decisions, planning or other defined purposes.
What is the business worth for the purpose and valuation date that matter?
Business value is not a single universal number. It depends on the purpose of the valuation, the interests being considered, the valuation date, available information, business characteristics, assumptions and the methods appropriate to the engagement.
Why is the valuation needed?
Clarify whether the purpose relates to investment, transaction, ownership, restructuring, planning, reporting or another defined requirement.
What drives value?
Examine earnings, cash flows, assets, growth prospects, market position, risks and other relevant business characteristics.
Which method fits?
Consider the valuation approach and supporting evidence appropriate to the business and the stated purpose.
A structured valuation view built around the engagement purpose
The exact scope depends on the business, information available, valuation purpose, date and applicable professional or regulatory requirements.
Valuation Purpose & Scope
Define the purpose, subject interest, valuation date, scope of information and intended use of the analysis.
Business & Industry Review
Understand the business model, industry context, operating drivers, competitive environment and value characteristics.
Financial Analysis
Review historical performance, earnings, margins, cash flows, balance-sheet factors and relevant adjustments.
Valuation Approaches
Assess relevant income, market and asset-oriented approaches based on the circumstances of the engagement.
Assumptions & Sensitivities
Consider key assumptions, business drivers, scenarios and sensitivities that may affect the valuation analysis.
Valuation Documentation
Present the methodology, evidence, assumptions, analysis and conclusion in a structured professional format.
Connect business fundamentals with the purpose of the valuation
A useful valuation starts by understanding the business and ends with a conclusion that is connected to the defined purpose, evidence and assumptions.
Review the factors that can influence a valuation conclusion
| Review Area | Typical Focus | Key Question |
|---|---|---|
| Purpose & Date | Valuation purpose, valuation date and intended use | What decision or requirement is the valuation intended to support? |
| Business Model | Revenue model, products, customers, operations and dependencies | What fundamentally drives the business’s ability to create value? |
| Historical Performance | Revenue, margins, profitability and financial trends | What does historical performance indicate about the business? |
| Forecasts & Cash Flows | Budgets, projections, cash generation and assumptions | What future performance assumptions are being used? |
| Assets & Liabilities | Relevant assets, debt, working capital and obligations | What balance-sheet factors affect the analysis? |
| Market Context | Industry conditions and relevant market evidence | What external evidence is relevant to the valuation? |
| Risks & Dependencies | Customer concentration, key people, regulation and operational risks | Which factors could materially affect future value? |
| Methodology | Applicable valuation approaches and supporting analysis | Why is the selected approach appropriate for this purpose? |
| Sensitivities | Key assumptions and scenario effects | How sensitive is the analysis to changes in major assumptions? |
From valuation purpose to documented analysis
Define
Confirm purpose, valuation date, subject interest and intended use.
Collect
Gather financial, operational, business and market information.
Analyse
Review business drivers, historical performance and relevant risks.
Assess
Evaluate suitable valuation approaches and supporting evidence.
Sensitise
Consider key assumptions, scenarios and factors affecting the analysis.
Conclude
Document methodology, assumptions, analysis and valuation conclusion.
Valuation support for important business decisions
The appropriate valuation scope should be determined by the specific transaction, decision or reporting requirement.
Extend valuation analysis into wider transaction and financial support
Valuation is purpose-specific and may require appropriately qualified professionals
A business valuation depends on the purpose, valuation date, subject interest, available information, assumptions, methodology and applicable professional or regulatory requirements. Different purposes may require different standards, approaches or levels of documentation.
A valuation analysis is not automatically a statutory audit, assurance engagement, investment recommendation, fairness opinion, tax opinion or legal opinion. Where a valuation is required for a specific statutory, regulatory, tax, financial reporting, court, transaction or other formal purpose, the appropriate applicable requirements and professional qualifications should be confirmed.
RASHA support does not guarantee a particular valuation, transaction price, funding outcome, investment return or commercial result.
Build a Structured View of Business Value
Discuss the purpose, valuation date, business circumstances and information available for your valuation requirement.