Top 10 Promising Valuation Firms In India 2023

Top 10 Promising Valuation Firms In India In 2023

Business valuation offers are similar to choosing your own adventure games. Before we decide on a specific path, let’s start with a high-level overview:

A business valuation may include an analysis of the company’s management, capital structure, future earnings prospects, or the market value of its assets. The assessment tools may vary depending on the appraiser, company and industry. Common approaches to company valuation include an audit of financial statements, cash flow discount models, and comparisons of similar companies.

The State of Business Valuation: What Do Companies Do?

As the name suggests, appraisal firms provide fee-based appraisal services for a variety of situations including M&A transactions), estate planning, employee stock ownership plans (ESOPs), litigation and unbiased opinions, and more. The range of services is much broader than a normal investment bank. However, the job is typically an inch wide and a mile deep.

To put it another way, you could spend weeks valuing a single asset for a single company, all to support a small piece of a settlement, litigation or inheritance. On the other hand, the investment banking job is miles wide but inches deep: you run various trading processes, respond to client requests, and handle different tasks at once, but you don’t get into big details in either of them.

The following are examples of various tasks in valuation companies:

Valuation of a private company or real estate employee Stock Ownership Plan: All private companies have shares. However, since they are not publicly traded, their stock prices are difficult to determine. When private companies issue stock options to employees and need to figure out the correct exercise price, they hire grading agencies to do 409A ratings. These estimates are also required if litigation is pending or an existing shareholder sells its shares.

When a merger and acquisition transaction is completed, the buyer must “attribute the purchase price” to various items and mark to market the assets and liabilities of the seller. You can also set up new assets such as goodwill and other intangible assets to bridge the gap between the purchase price of the equity and the seller’s share capital as specified in the transaction.

Bankers treat this as an afterthought in their models. Still, valuation firms put a lot of work into valuing and revaluing these assets as companies are required to provide accurate numbers:

Goodwill Impairment Test: If Company A paid $1 billion for Company B, creating $200 million in goodwill in the process, and later losing the value of Company B, Company must A “impair” or “impair” goodwill to account for the loss. of value. Companies engage valuation agencies to perform these inspections periodically to determine appropriate impairment.

Valuation of private equity portfolio companies: private Equity clients can use the valuation services to review portfolio company valuations to ensure proper reporting. The value of the entire portfolio could fluctuate if they disagree with a PE entity’s assumptions of the discount rate, valuation multiples, growth rates or liquidity discount.

Estate and gift taxes: when a wealthy person dies, their attorney may hire a valuation service to determine the value of the wealthy person’s net worth. After this calculation, the government collects taxes on wealth.

How does “firm valuation” actually work, and what exactly is it?

You might be thinking, “Oh, this job sounds quite complicated.” You might wonder, “How does the valuation work? Exist new strategies? Exist any undiscovered traps? “Is there a new, challenging math?” Actually, No!

The term “valuation” refers to determining the value of something. It still uses unleveraged DCF free cash flow models, valuation multiples based on comparable companies or transactions, and asset-based methods such as liquidation valuation.

Valuation of a company is a general process of determining the Economic Value of an entire business unit or company. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, determining partner ownership, tax, and even divorce proceedings. Owners often turn to professional business appraisers for an unbiased estimate of business value.

The difference is in the level of detail: timelines and assumptions that cover multiple sheets rather than the relatively simple IB methodology.

The term “math” is still limited to rudimentary arithmetic and statistics. (There is one exception: if your group likes complicated financial derivatives, the required mathematical level will increase.)

In addition to the level of detail, the objective of the task varies depending on the type and size of the company. For example, the valuation teams function primarily to support the Big 4 audit teams. As a result, you spend a lot of time analyzing the securities of other companies that the audit team focuses on certain line items in the financial statements, for example, the income statement expense for share-based remuneration.

So as a beginner, you spend much more time with Excel than with investment banking.

Best Valuation Firms

The Big 4 firms (Deloitte, E&Y, PwC and KPMG) perform commercial valuations, although as mentioned, much of it is used to support their auditing practice. The leading autonomous valuation company outside of the group is Duff & Phelps.

Provides regulatory and compliance advice, cyber risk assessments and restructuring advisory services in addition to valuation. Houlihan Lokey is a leading business valuation firm that also acts as a middle market investment bank and provides transaction advice. Stout Risius Ross, BDO, Grant Thornton, Willamette, Alvarez & Marsal, RSM, CBIZ, CohnReznick, MPI, VRC, Withum, Andersen, Baker Tilly and Mercer Capital are some of the other companies.

Like Duff & Phelps, most of these organizations do more than just assessments, and many specialize in specific industries. Alvarez & Marsal, for example, is known for its turnaround consulting and restructuring services. Then there are the boutique valuation firms that specialize in specific areas or industries and number in the tens if not hundreds.

Evaluating Salaries, Bonuses and Lifestyle

Salaries, bonuses and lifestyle are factors to consider when evaluating a job. Total compensation for entry-level positions at these companies ranges from $60,000 to $80,000, with a bonus ranging from 0% to 25% of your main salary. Yes, it’s a lot less money than investment banking, but the lifestyle makes up for it: you typically work 40-50 hours a week.

Larger companies may have more hours, but it will never be a permanent 80-hour job. Also, if you’re on an assessment-only team, you don’t travel as much as someone on a Financial Due Diligence (FDD) team. You can take it every now and then take a trip, but you won’t be out of the office every week. Non-Big 4 companies pay less than the Big 4, although the gap narrows as you move up the corporate ladder.

Partners and CEOs of business valuation firms could earn in the low to mid-six figures at the highest levels (think $250,000 to $500,000). The Big 4 companies tend to start in the lower to mid-range, but you have to keep in mind that the Big 4 affiliates tend to start in the same low range into the six figures. To make $1 million at a Big 4 company, you need to generate income that is a multiple of your salary, e.g. B. $4-5 million per year, which can take years.

Is it worth pursuing a long-term career in business valuation?

Analyst, associate, vice president, senior vice president or director and general manager or partner are the ranks in business valuation equivalent to these of investment banking.  Sometimes it’s more compact, with fewer people in the centre; For example, some companies only have analysts, VPs, and CEOs.

That’s because they don’t work on long-term deals that require ongoing customer contact. As you progress, it becomes more of a sales role, requiring you to acquire new clients and take on additional responsibilities from existing clients to move forward. But because the tariffs are cheaper and many tasks are “normal” and not tied to big deals, the pressure is less than with IB.

Due to their commercial sensitivity, organizations specializing in M&A engagements and litigation typically need to change the way they do business for stability. As wealthy people die regardless of economic conditions, tax brackets for estate and gift taxes are more difficult to navigate, and the portfolio company’s valuation falls somewhere in the mids.

The basic trading ways out of this career path are simple: you earn significantly less than with IB/PE, but you also work less and have much less stress. You also become a skilled worker instead of a Generalist working on multiple deals across multiple companies.

Recruitment with valuation firms

Recruitment is often less competitive than investment banking or private equity. You don’t have to start years early, you don’t have to have a perfect GPA and you don’t have to go to a top college.

Top state colleges, some private companies, several Ivy League schools and some Masters of Finance programs are among the “target schools.” Most companies prefer young college students and master’s students with no work experience for entry-level positions; Jobs beyond that almost always require work experience in assessment.

Recruitment at the MBA level is also possible, but less developed than in other industries. It’s more common for associates and senior associates to enrol in MBA programs to advance their careers, or for professionals in other fields to use an MBA to transition to assessment.

No. You have to do a lot of networking to get an interview, but if you do, you’ll stand out a lot more because it’s less common. Another distinction is that the certificates may be more useful for business valuation-related professions.

There is always the CFA, but there is also the CPA, ABV (Accredited in Business Valuation) and ASA (American Society of Appraisers) such as CEIV (Certified in Estate Valuation) (Certified in Entity and Intangible Valuations). All of these help to some degree, but still are less valuable than your work experience, education and even a little networking.

If you want to follow any of them, start with the CFA as it is valuable across multiple industries. Finally, the interviews are quite similar to investment banking interviews, albeit with a greater emphasis on accounting and valuation than on M&A and LBO models.

Wealth Management

While company valuation offers some potential exit options, the transition to investment banking can therefore be more difficult than expected> You need to act quickly, ideally within 1-2 years, and avoid crap like “modelling of Case Studies” which are nothing but exams in Excel/PowerPoint format. Also, your exit options are determined by your team and customer base.

For example, the litigation team may have fewer options than the ESOP team (which may result in different reviews/controls). Working on purchase price allocations, portfolio company valuations or in the context of mergers and acquisitions is a good fit for a move to IB. Your chances of finding a job in private equity or Hedge funds are rare as these positions require more than just valuation skills. You should also be familiar with the whole trading process, or the entire investment process of hedge funds, Catalysts and Risk Mitigation Strategies.

The top 10 best valuation firms in India in 2023 are mentioned below.

 

1. ESPECIA

ESPECIA is one of the leading valuation experts in Delhi and offers quality business services. This is one of the bright spots that add compelling business value to the company’s offering. Especia is a leading provider of secretarial services and offers the best solution to allay your business concerns. They collaborate with their customers and support and regulate their operations. Especia has conducted over 250 valuations for private, public and commercial companies.

ESPECIA valuation services include:

• Business valuation
• ESOP Rating
• Deal Advice and Investment Documentation
• Unbiased Opinion
• RBI Rating
• Income Tax Rating
• SEBI Valuation
• Registered Valuer
• Sweat Equity Valuation
• Ind AS Valuation
• Valuation of Convertible Instruments
• DCF Valuation
• Valuation of Intangibles
• IBC Valuation Consultants
• Brand Valuation
• Startup Valuation
• Stock Valuation
• M&A Valuation
• ESOPs & Sweat Equity

2. Axium Consulting Group

Axium Consulting Group, a company providing engineering, manufacturing and supply chain management services, was founded in 2014 in Chennai, India. Founded to be successful, to reach global standards in different technical fields and innovation has created a gap in the market for trusted partners willing to work hands-on and deliver results.

• Vision: To be the preferred engineering, manufacturing, and supply chain management partner.
• Mission: To provide customers with on-time, high-quality services that lead to a value proposition in the relevant area and increase your competitiveness.
• Team: At Engineering Services & Solutions, your team combines knowledge, field experience and in-depth knowledge of the market and customers.

3. Colliers

Colliers is one of the largest appraisal companies in the world with offices in more than 65 countries and 26 years of experience. You fully utilize the potential of the property to drive the performance and growth of your business.

Colliers offers the following services:

Real Estate Valuation: Colliers team provides a solution to your real estate and business problems by informing client’s business needs.

Equipment and Machinery Assessment: This company offers various services to evaluate equipment for multiple purposes.

Technical Due Diligence: Plant project tracking, budget review, technical feasibility and project review Colliers offers the best TDD services.

4. Knight Frank

It is one of the largest appraisal and consulting services available. Some clients it works with are developers, private equity funds, financial institutions, governments, public sector companies, industrial development, corporations, hotels and high net worth individuals.

They offer a variety of services:

• Evaluation of real estate
• Evaluation of Plant and Machinery – Provides technical services to lenders and investors.
• Business Valuation – Provides in-depth expertise in various techniques and strategies.
• Litigation Assistance

GAA -ADVISING

GAA has a team of experts who can assist you with your evaluation. The GAA has offices in numerous cities in India including Delhi, Gurugram, Mumbai and Bangalore.

They offer the following services:

• Valuation advice
• Companies and business interests
• Intangible assets
• Financial instruments
• Immovable assets – The immovable assets include immovable property.
• Movable assets – include plants and machinery.

6. BDO INDIA

It helps to understand the needs and stakeholders. Offer services based on customer preferences. It offers 360-degree views of rating services in cities across India including Ahmedabad, Bengaluru, Chennai, Delhi, Goa, Hyderabad, Kochi, Kolkata, Goregaon, Mumbai and Pune.

BDO India offers the following services:

Business Valuation: BDO India handles Income Tax, RBI issues, SEBI, Business Reorganization, Mergers, and Business Valuation related to Acquisition and Corporate Law.

Value of Financial Reporting: BDO India is a venture capital firm engaged in Purchase Price Allocation, Fixed Asset Valuation, Impairment Testing and Financial Instruments.  Specialised Valuation deals with family settlements, among others Claims for damages, expert opinions and real estate appraisals.

Intangible assets are the fourth type of assets.

The settlement, Arbitration and Dispute Resolution

7. Duff & Phelps

Duff & Phelps has been providing business valuation services for nearly a century. In India, Duff & Phelps holds branches in Mumbai, New Delhi, and Hyderabad. It provides a basic understanding as well as excellent industry recommendations. The return-oriented capital investment is subject to the company valuation.

They offer a variety of services:

• Purchase price allocation
• Derivatives Valuation and Share-Based Compensation
• Accounting for a fresh start
• Strategic Value Advice
• Tax Valuation
• Valuation of machinery and equipment
• Impairment of intangible assets

8. Virtual Auditor

Virtual Auditor is a technology-oriented company that supports start-ups with registration, compliance and regulatory issues. They also help startups with fundraising, business modelling, startup reviews, virtual CFO services and technology consulting so they can get online and participate in the technology revolution. Digital India.

Virtual Auditor aims to give entrepreneurs the opportunity to focus on what they do best: running their businesses. They take care of compliance and regulatory issues. Their motto is “Your aspirations. We handle everything from registration to business assessment, compliance and technology on our platform so you can pursue your business ambitions.”

Virtual Auditor is a One-Stop shop for business formation, business registration and business services. The firm is managed by a dedicated team of CPAs, company secretaries, registered surveyors and management professionals. They strive to bring great insights to our customers across the board.

9. FIN VAL RESEARCH & CONSULTANCY

FinVal Research & Consultancy is a professional services firm that provides world-class research, financial modelling, valuations and corporate finance for emerging companies. and early-stage companies. They provide high-quality, custom accounting and economic research services to many global clients, including primary and mid-market companies and financial services firms.

FinVal Research is headquartered in New Delhi, India. They have a team of qualified professionals, including Chartered Accountants and MBAs from top universities, led by a highly experienced and client-focused leadership team.

Their services are in three Divided into functional categories:

• Startup Services
• Financial and Investment Research
• CFO Solutions

10. Dk Nagpal & Association

DK Nagpal & Associates is an India-based real estate appraisal and consulting firm specializing in real estate analysis and appraisals. DK Nagpal and Associates is one of the most reputable real estate appraisal firms with extensive experience and a solid foundation in the industry.

You can offer some services through that full spectrum of valuations, including:

• Valuations
• Techno-Commercial Study
• Real Estate Consulting
• Business Consulting
• Financing proposal
• Evaluation of plants and machines
• CE certification
• LIE reports
• Company valuation
• Capital Gains Assessment
• Mortgage Assessment
• Dispute Resolution Assessment

Final Thoughts on Business Valuation Careers:

Considering the Above you can get a career like f Then introduce yourself to an appraisal agency:

Advantages:

• If you’re late start in the finances, that’s it Business Opinion is an excellent “Plan B”; Recruitment is also less competitive than the IB/PE process.
• You’ll gain skills that are immediately applicable to other areas of finance and you’ll learn more about assessment than in IB/PE.
• It’s a great career path that can pay out in the upper mid-six figures while allowing you to have a comfortable life.

Cons:

• Compensation is much lower than IB/PE at all levels.
• If you want to join a deal-based role, you will need to master the M&A/LBO process and modelling as you will not have much exposure to exclusive deals.
• Climbing the corporate ladder is a challenge like many others want it to be,” and Die Turnover is generally lower than banks.
• If you are on the wrong team or wait too long to leave the industry, your exit opportunities will be more limited.
• One of the least acknowledged parts of finance is business valuation. It may not be as “prestigious” as other areas, but it serves as a good backup plan to move into other areas and as a long-term career strategy.