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    Business Valuation in Dubai

    Business valuation services in Dubai provide a vital service to business organizations. They lend their expertise to companies, performing the complex valuation process to provide a formal evaluation and valuable insights. They can provide valuable information on a full range of related issues, including financing your business and your management team’s qualifications.

    A business valuation firm can estimate the value of your company in the next few years and provide a comprehensive valuation report that can help you grow and increase your company’s value.

    Through the business valuation process, organizations ascertain their current and projected value. It involves estimating how much stake in the company a particular monetary or resource investment is worth should the company ever require funding or a non-monetary investment from a bank or another institution. The process also provides a ready business selling price benchmark.

    Conducting business valuation is a complex and time-intensive process. It requires different types of data and information from various sources. It also necessitates valuation experience and knowledge of Dubai and UAE industry and market trends.

    Innovex provides business valuation services in Dubai. You can rely on us for fair and reliable business value assessments.

    Business Valuation in Dubai

    Business valuation is the general and systematic process of determining a business organization’s economic value, including its sale value. It helps inform partner ownership, taxation and other issues. It serves as a reality check for business owners, and it can tell them if their business model is working or not. Many business owners also use their asset valuation to help them develop growth plans designed to maximize their business value over time.

    Business valuation requires the use of established valuation frameworks. It is a complex prtocedure and something business owners will find challenging to do on their own. If you need a business and asset valuation in Dubai, talk to Innovex.

    Business Valuation in Dubai

    Get a business valuation done if you have not checked your business value in over twelve months. A business valuation will provide you with multiple figures you can use to estimate your tax liability, market value, and assets value. You can also use it to track company growth.

    The following are some of the benefits of getting a business valuation:

    • A business valuation gives you a deeper knowledge of a company. This will help you estimate specific figures, like how much insurance coverage to get, how much to reinvest into the company, and how much you can sell the company or your shares for to make a profit.
    • It lets you know a company’s worth beyond simple data, such as total assets, stock market value, and company bank account balances.
    • It helps you easily demonstrate growth trajectory.
    • It is essential to securing investments and funding; if you’re seeking additional funding for your Dubai business, any serious investor will require a valuation from a trustworthy third-party business valuation firm.

    A business valuation will help you form an accurate picture of your company’s current state and growth potential. It will gain you more investor attention and allow you to get the funding you need to scale up your operations.

    To ensure accurate valuation figures, work only with an experienced provider of company valuation services in Dubai. 

    Business Valuation Approaches

    Business valuation consultants typically use the asset, income, and market approaches. Analysts must consider all approaches and use their judgment to determine which methods or combinations are appropriate.

    Here is a summary of each approach.

    Asset-Based Approach

    The asset-based approach, known as the cost approach, combines the fair market value of the business’ net assets to arrive at a valuation. It is a technique that produces a control level value, and is a particularly useful approach when valuing holding companies and distressed entities.

    The asset-based approach uses the net asset value or net book value, the cost of an asset less accumulated depletion, impairment, depreciation, and amortization. However, it usually ignores the value of intangible assets, such as reputation, customer relationship brands, and workforce experience.

    Income Approach

    The income approach estimates value based on a business’ ability to generate future income. It uses expected income as an indicator of market value, thus it is also known as the capitalization approach.

    This framework is useful when reliable market data is hard to find. It is a good method for estimating the value of established, profitable business entities.

    Market Approach

    This method derives value through a market-based appraisal. Essentially, it compares the value of a business to that of a similar business that has just been sold. To illustrate, when estimating the value of your hotel in Dubai, your hotel valuation services provider can use the selling price of a similar property as its basis for its valuation.

    The market valuation method is the most subjective approach to measuring business value. It makes a good framework when valuing public or other large private companies.

    5 Reasons for Performing a Business Valuation

    Business valuation can deliver the following benefits:

    Without a business valuation, the assets on a balance sheet may not be correctly adjusted for depreciation and other factors and thus may not reflect their true value. Having a current valuation of the business arms you with excellent, up-to-date information you can use to inform your business decisions.

    If you want to buy or sell a business, you must have a fair business valuation that looks at market conditions, income, assets, and other indicators to make sure you can set a good buying or asking price. A business valuation will help you demand what your company is worth and prevent you from overpaying for a business purchase.

    If there is an issue with ownership shares, especially a dispute in court, you will need a business valuation to determine the value at stake.

    A business valuation is typically required when negotiating with banks and investors.

    If you’re selling business shares, you must have a business valuation on which to base per-share value.