Enterprise Valuation– Enterprise Value, also known as EV, is the appraisal of an organization’s total value. The value is calculated by adding the market values of common stock, preferred equity, debt, and the minority interest. These values are summed and then the cash and investments are subtracted to ascertain the final value. Enterprise valuation incorporates a company’s debt and cash reserves, resulting in an accurate value.

Resurgent’s expertise in business valuation gives our clients assurance that appropriate methods are used to reach accurate, reliable estimates for the value of the company, as well as the value of its stock. Scalar’s assumptions, methods, and an opinion of value are documented in a comprehensive valuation report.

Companies seek business valuations for corporate governance or regulatory reasons, or management review for critical input for decision making process. In these instances the company is at a critical moment in its life. It may be planning a major acquisition, resolving a shareholder, or joint venture dispute, seeking to reduce the gap between intrinsic and market value.

Valuation for BuyBack of Shares-Buyback of Shares, commonly known as “share repurchase”, happens when a company buys its own outstanding shares to reduce the number of shares available in the open market. The reasons behind buy back of shares by a Company could be:

• To increase the value of remaining shares (shares left after repurchase) available by reducing the supply;
• To prevent takeover by other shareholders;
• A repurchase reduces the number of shares outstanding, thereby inflating (positive) Earnings Per Share (EPS) and, often, the value of the stock (if other conditions remains unchanged);
• A repurchase can demonstrate to investors that the business has sufficient cash set aside for emergencies and a low probability of economic troubles.

No methodology prescribed for fixing the Buy-Back price but generally will be the Fair Market Value as per International Valuation Standards. The pricing mechanism for buy-back may not be explicitly stated anywhere but from good governance perspective and from the Taxation and Regulatory angle, a valuation report is sufficient to justify the basis of buy-back price. The buy-back price may become a price point for tax purposes for future transactions like fresh issue or internal restructurings.

Valuation for Startups-Startup valuation is the process of determining a company’s true worth. Every startup requires valuation because it is the quintessential factor in determining the total equity diluted to an investor in lieu of funds sourced from him. Investors, on the other hand, benefit because it allows them to receive the expected return on their investment.

Share Swap Valuation-The swap ratio is the rate at which a company’s shares are exchanged during an M&A deal. M&A transactions should ideally not include a cash purchase of the target’s equity shares. Instead, the purchasing business has the option of paying cash, converting the target’s shares to its own, or a combination of cash and stock. To convert one company’s shares into another, both businesses must agree on an exchange rate, known as the swap ratio.

Business Valuation– Companies need business valuations for regulatory compliances, corporate governance or for internal management review as an important insight in the strategic decision making process. It may be pertinent to a decision related to acquisition, resolving a shareholder dispute or any business combination, thereby seeking to reduce the gap between intrinsic value and the market value.

We thoroughly analyze the business dynamics along with its essential value drivers, building on extensive experience of the specialist and apply the relevant valuation approach and methodologies.

Valuation for M&A-In an M&A transaction, the acquirer and the target are the two parties involved in the valuation appraisal process. The acquirer seeks to purchase the target at the lowest possible price, whereas the target seeks to purchase at the greatest possible price. As a result, valuation is critical in M&A transactions from both the buyer’s and seller’s viewpoints because it aids in determining the final transaction price.

The Board of Directors need to take strategic decisions for spearheading and channelizing the next level of growth and development of the company. Driving strategic growth through mergers and acquisitions, leveraged buyout, amalgamations, demergers or any other means of business combinations requires a Category I Merchant Banking Firm registered with SEBI to offer an independent opinion on the transaction that reassures the Company’s stakeholders on the fairness of the deal-making decisions taken by the board of directors, and thereby improvising and ensuring shareholder transparency.

Resurgent is a Category I Merchant Banking Firm registered with SEBI, offering independent fairness opinion to Company’s stakeholders on the fairness of merger and demerger transactions.