Transaction Advisory

The current economic environment continues to be characterized by acquisitions, investment opportunities and fund-raisings across borders with ever increasing complexities. We at Volition LLP adopt an independent, objective and transparent approach to provide you the critical components of decision making in the transactions.

Valuations creates impact and could exist in tangible and intangible assets of a business, an investment, or an intellectual property. Our professional expertise can help you arrive at valuations which will be reliable, credible and stand the scrutiny of regulators or other stakeholders.

Increasing acquisitions demand detailed Due Diligence exercises. Due Diligence helps uncover the potential risks and liabilities during the transactions. We adopt a structured approach, which enables us to identify value drivers, deal breakers and other areas of interest to our clients.

Valuation plays a critical role in the today’s dynamic economic environment, since there is a huge reshuffle happening in the Indian economy as well the Global economy, especially with the ever increasing Mergers and Acquisitions, restructuring, strategic alliances in the form of joint ventures etc. Volition LLP has an edge over the other valuer’s, as the valuation practice followed by the firm is based on the International Standards on Valuation.

 

We cover a wide variety of services in Valuation including:

Valuation of Business

At Volition we assist our clients in carrying out valuation of businesses ranging from start ups, small privately owned companies to large companies, including valuing businesses for the purpose of liquidation. The valuation for each category of company would vary depending upon the factors or reasons for such valuation.

Valuation of other Intangibles like Patent, Trademark, Software

The increasing recognition of the value of intangibles came with the continuous increase in the gap between companies’ book values and their stock market valuations, as well as sharp increases in premiums above the stock market value that were paid in mergers and acquisitions in the late 1980s. Intangibles may take any form ranging from Patents, Trademarks, Copyrights, Licenses, Software, Customer lists, Assembled Workforce, Brand etc. We assist companies in the identification of Intangibles, as generally under the present Accounting GAAP in India, there are a very few Intangibles which are recognised in the books, thereby creating the huge gap as explained above. Post identification, we also assist companies in the valuation of these Intangibles.

Brand Valuation

As per the American Marketing Association “A brand is name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition.
The brand is a special intangible that in many businesses is the most important asset. This is because of the economic impact that brands have. They influence the choices of customers, employees, investors and government authorities. In a world of abundant choices, such influence is crucial for commercial success and creation of shareholder value.
Brand valuation assigns financial value to the equity created by the name or image of a brand. With the advent of IFRS in India, the importance of recognising a Brand is assuming more importance. We at Volition, assist companies in identifying the true potential of their brands and thereby increasing the value of the business including appropriate strategic management of the Brands. To know more click here (www.brandvaluationindia.com)

Application of IFRS -3 and Purchase Price Allocation

IFRS -3 – Business Combinations requires all assets and liabilities to be valued at Fair Value. It also requires to identify all intangible assets which have been acquired as a part of the business combination, but not recorded earlier in the books of the acquiree. IFRS 3 also demands that brands and other intangible assets are valued by a company independent of the business and auditors.

We assist companies in the Purchase price allocation as well as identifying intangible assets not recognised and also valuing them appropriately.

Employee Stock Options (IFRS-2)

IFRS 2 on Share-based Payment requires compliant companies to measure the fair value of the employee stock options granted to employees and to recognise this amount as an expense.

We assist companies in the Fair valuation of the options issues by the companies for the purpose of compliance with IFRS-2.

Impairment Reviews of Intangibles including Goodwill Impairment

Impairment reviews on intangibles including goodwill is an inherent requirement of many accounting GAAP’s, specially in case of intangibles with indefinite useful life and goodwill.
We can undertake Impairment reviews for intangibles and goodwill for the purpose of accounting.

Valuation of Websites

Websites can be valued for a number of purposes like Wealth management, Tax management, for due diligence etc. We assist companies in the process of valuation of websites.

“Due Diligence” is a legal term (borrowed from the securities industry). It means, essentially, to make sure that all the facts regarding the company are available and have been independently verified. Due Diligence is an integral part of any M&A deal, strategic alliances, project financing etc. We provide due diligence services independent of the Valuation services, such that there is no conflict of interest.

Our services include:

  • Financial Due Diligence
  • Commercial Due Diligence
  • Legal Due Dlligence