For any enterprise looking to raise capital, meet regulatory accounting requirement(s) or go for mergers and acquisitions (M&A),business valuation plays a key role. In a complex and dynamic economy, the real economic worth of a company depends on its business model and today, it has become even more challenging for a firm to justify its actual value. This is where the role of chartered accountants come into the picture with articulate valuation, helping firms gauge their real worth.However, learning the tricks of business valuation requires special skills and competence.
You can acquire the requisite skills through special a course in business valuation from a recognised foreign institution, the funds for which can be easily procured through a special personal loan for chartered accountants. With pre-approved offers, the process of taking loans become simpler. CAs just need to fill in a few basic details to avail their pre-approved offer.You can later offer this specialised service to your clients and differentiate your firm from the rest. Read on to know the factors propelling the need for business valuation services from CAs.
1. A potentially blockbuster year for M&As
2017 saw more than 1,000 M&As, which happens to be the highest in the current decade. 2018 has started on a positive note with the number of M&As in the month between Jan-Feb 2018 surpassing the figures of the corresponding months of the previous year. With several sectors of the Indian economy on consolidation mode, the Indian M&A market can witness some big-ticket deals in the coming days.
2. IPOs on a roll
The Indian IPO juggernaut in 2017 is expected to continue in 2018. It’s to be noted that as many as 153 IPOs hit the Indian market in 2017, raising capital worth USD 11.6 billion. According to an EY report, the activity looks goods for 2018, thanks to stronger investor sentiment creating an encouraging and bullish environment. The EY report says that the overall economic growth of the country makes it an emerging market for investments in the coming days. The rising investor appetite can be gauged from the fact that the previous year saw the highest number of deals and proceeds.
3. Expected growth in Indian family businesses
According to PwC India Family Business Survey 2016, 84% of Indian family businesses are expected to grow steadily and aggressively over the next 5 years. This growth needs raising capital from financial institutions or from the market, the backbone of which is valuation. CAs can cash on these opportunities by offering business valuation services to clients by availing a Bajaj Finserv Loans for CAs. With loans up to Rs. 2 crore, finances won’t pose to be roadblock in expanding your clientele base.
4. The final word
A challenging discipline involving a complex process, business valuation doesn’t follow a ‘one-size fits all’ approach. Including financial and historical perspective, it requires professional judgement and fact analysis to arrive at a meaningful valuation.
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