Valuation&FinancialRestructuring

There is no general law compelling a company to obtain a valuation. It becomes necessary in specific situations, such as raising investment, selling or merging a business, resolving a shareholder dispute, family business succession, or when a bank or court requests one. Whether it applies to you depends on the transaction or situation you are dealing with.

Valuation and restructuring work is quoted with a proposal once the scope, the size of the business and the purpose of the valuation are known, so no fixed price can be given here. The cost varies with the complexity of the accounts, the number of entities involved and the depth of analysis required.

Timing depends on the complexity of the business and how readily the financial records and supporting data are available. A straightforward valuation of a single entity with clean accounts can move faster than one involving multiple entities, related party transactions or incomplete records, so the timeframe is confirmed once the scope is agreed.

Restructuring is typically needed when a company faces cash flow strain, mounting debt, declining margins, a merger or acquisition, or a change in ownership or shareholding structure. It can also be requested by lenders as a condition of continued financing. The right approach depends on the specific cause of the difficulty.

Valuations are commonly requested by investors before injecting capital, banks assessing lending exposure, courts in a dispute or divorce settlement, and shareholders in a family business planning succession or a partial sale. The intended use of the valuation shapes the method and level of detail applied.

You will generally need recent audited or management financial statements, trial balances, cash flow forecasts, details of assets and liabilities, major contracts, and information on shareholding structure. Additional documents may be requested depending on the industry and the reason for the valuation, such as litigation or a pending sale.