https://alkhadim.ae/rising-demand-for-business-valuation-in-dubai/

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Rising demand for Business Valuation in Dubai
Business valuation as the term suggests provides
the business owner with several facts and
figures regarding the actual worth or value of
the company in the market in terms of asset
value, income values and competition. Actually,
it becomes imperative for the business owners to
have all this information. Various business deals
of business entities either wholly owned or
partially as being taking place nowadays, so, the
business valuation in Dubai has gained
remarkable importance. Usually, the valuation is
done by experts of the accounting services in
UAE for estimating the intrinsic value of the
business. The professionals of the auditing
companies in Dubai make sure to provide cent
percent dependable reports that will make it easy
for you to take a quick and profitable decision.
Knowing the value of your business can help you
in making important decisions. So its time to
give a start. Why valuation is important? It is
not just about scrutinizing all the departments
of the company including finance, but the owner
has to analyze where exactly the companys value
lies. Business valuation is a technical work,
which requires a lot of financial knowledge. The
accounting firms in Dubai will make you discuss
in depth about the details of the companys
business model, its strategies, and the outside
market. The business valuation helps in
determining the economic value of a business,
asset or company. More or less, it needs to be
valued if it is being bought, sold, or
liquidated. If you want to sell your company,
the account consultancy services can help in
advising a strict valuation to raise a good
negotiation with the buyers. On the other hand,
the buyers will make their valuation too. You
can take the advice of an accounting company in
Dubai for the purpose that will take into
account all the financial statements, cash flow
models, and market analysis. The following
details can summarize the point more precisely

• The valuation will enable us to forecast the true
  profitability of the company
• The audit firms in Dubai will help you examine
  the operations of the company for better
  decision making and this would further help in
  increasing the profitability of the business in
  the long run.
• The evaluation gives an understanding at the
  present time so that you can decide whether to
  sell your business immediately or hold and
  nurture your company for future sale. It will
  make you understand the current scenario clearly
  which will save both time

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• and money. With the help of accounting firms in
  Dubai, you can then analyze where more effort is
  required to develop your company and which part
  has turned out to be a bad investment.
• If in case, it is a partnership concern and the
  partner want to get separate, then an
  independent business valuation is important to be
  conducted. Many of the auditing companies in
  Dubai can advise on the same.
• Valuation becomes a primary step during mergers
  and acquisitions when you are bringing an
  investor in the company. The auditors in Dubai
  will be of great help. An investor will also be
  able to decide if investing in a company would be
  profitable for them.
• In the case of ESOP- ESOP is the Employee Stock
  Ownership Plan. Under the plan, the company
  provides the employees with ownership of the
  company. Generally, the shares of ESOP are
  valued annually to measure the productivity of
  the company.
• In case if any negotiation is going on with the
  banks or investors, then the valuation report
  proves to be of utmost help. A business valuation
  will increase your credibility with the banks
  and the process also gets speed up. Under the
  expertise of auditors in Dubai, you have all
  knowledge about your companys worth, which
  provides a positive impact on the financial
  institutions and that will help you in getting
  easy loan from the market.
• In case, if you are involved in any type of court
  case, then the damages should be based on the
  worth of the company instead of any of the
  estimated figures. A proper evaluation as
  advised by the accounting services in Dubai will
  surely strengthen the case.
• The valuation becomes helpful in the case of gift
  tax planning such as when transferring an
  interest to the family members or donation to a
  charity and so on.
• Valuation becomes a guide for investors who are
  showing interest in buying running businesses
• Three Business Valuation Methods
• For the valuation of the business in Dubai, any
  of the below-mentioned methods can be used
  through the expertise and guidance of
  professionals in accounting services in UAE
• Asset approach- this method estimates the value
  of a business as the sum total of the costs
  required to create another business of equal
  economic utility. The asset-based method becomes
  useful for accurate business purchase price

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• allocation. You are finding the market values of
  business assets and liabilities and the
  difference is the business value. This is
  generally considered in the case of liquidation.
  Under this approach, either, the advisors of the
  accounting service in Dubai would advise to list
  the business net balance sheet value of the
  assets of the business and subtract the value of
  its liabilities or you determine the net cash
  that would be received if all assets were sold
  and liabilities were paid off.
• Market approach- these methods estimate the
  business value by comparing to the recent
  selling prices of similar businesses. So, this
  approach uses the principle of competition.
  However, this becomes challenging for sole
  proprietors as it is difficult to find
  comparative data and works well where there are a
  sufficient number of similar businesses to
  compare.

• Income approach- as the name implies, this
  approach estimates the business value based on
  its income-producing capacity and risk. Firstly
  the future returns from the business are
  estimated and then compared against the
  associated risk. But what is a good return
  ultimately depends on the market, which is why
  business valuation is so subjective.
• Choosing an expert for valuation
• All the business valuations are not the same.
  Hence the valuation experts are required to be
  competent enough, conversant with all the
  guidelines and independent for the valuation to
  be credible. The professionals under the audit
  firms in Dubai have the expertise and experience
  to perform the task in an easy going way. Apart
  from
• determining the worth of assets, future earnings
  and market conditions, the accounting company in
  Dubai will also make a thorough examination of
  all the entities documents. The opinion and
  advice of the experts play an important role in
  making these assessments and determinations.
  Some of the points which we can consider while
  hiring the audit firms in Dubai are explained
  below
• Experience the valuation has always been a
  complex task. The professionals in the
  accounting services in UAE should have the
  expertise to understand each of these approaches
  and formulas and then only can determine which
  will yield the type of results the management is
  looking for.
• Conduct the Visit The expert should regularly
  make a visit at the site as this will help in
  physically observing and assessing the subject
  undervaluation and then can

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• substantiate the findings with the information
  received from the key executives of the company
  as well as from the financial records.
• In-Depth Knowledge about the company an expert
  from the audit firms in Dubai will make sure to
  know all the intricate details about the company
  and its undertakings, about any expansions or
  new products being added, to get a clear
  perspective of how these additions are relative
  to the company and the market.
• Certified Valuation Specialist the professionals
  under the accounting consultancy services are
  qualified, trained and certified for the
  valuation process and also participate in
  continuing training programs offered by the
  accreditation organizations
• Business Diversities no two businesses are
  likely to be the same. Hence the professionals
  in the accounting company in Dubai will encounter
  different scenarios that need to be assessed in
  each valuation. Methods are accessible but they
  have to be selected depending on the
  circumstances and opinion
• The auditors in Dubai should be compliant with
  the international financial reporting system and
  makes sure to provide custom solutions according
  to your business needs.
• One can summarize from above that business
  valuation is very beneficial to the company.
  However, it can prove to be a complicated
  process. Therefore, the businesses can take the
  help of various audit firms in UAE, who have
  highly qualified professionals that can deliver
  a range of services relating to auditing,
  registration, financial planning, etc. If the
  business owners would like to seek only some
  low-cost business valuation, then they would
  surely miss out on the important benefits which
  can be received from a comprehensive valuation
  analysis and valuation report performed by audit
  firms in Dubai. The auditors in Dubai are expert
  in business valuation and are happy to offer the
  best services for most competitive prices. Each
  valuation method as explained above is being
  used to determine a fair price for your business.
  There are various audit firms in Sharjah and
  audit firms in Abu Dhabi where the best experts
  will help you at every stage of the valuation
  process!