Business Valuation Services

The value of a business is crucial when it comes to buying or selling a company. Knowing the value of an existing firm is also important, especially for startups, where it becomes mandatory to determine their valuation after a year or two. For established businesses, determining the value not only reveals its current worth but also assists in closing any gaps that exist and ensuring its enormous value in the future.

There are specific methods used in the business valuation process to evaluate a company’s value.

The four main methods of business valuation in Dubai are:

  1. Asset-based method: Assets based method includes book value method, Liquidation value method, and replacement value method.
  2. Market-based method: Market based method includes comparable company market multiplies method, comparable transactions method and market value method (for quoted securities).
  3. Income-based or discounted cash flow method: This method includes capitalization of earning method and discounted free cash flow method.
  4. Other method: Other method includes contingent claim valuation, price of recent investment method and Rule of thumb.

Business valuation is essential for investors to improve their understanding of a company’s assets, selling worth, true value, bad debt accounting, and to settle shareholder disputes. It also simplifies litigation, company reorganization, mergers and acquisitions, cash flow and forecasts, and investor outreach.

Comparing a firm to the market strengthens it from all sides and ensures it can survive the changing business climate. AAYU Management is one of the top business valuation firms in UAE that can help business owners go forward in the valuation process and understand the importance of measuring and comparing current steps to previous ones to determine if they are on the right track.