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Business Valuation

Business valuation is not about crunching numbers; it is part of a bigger picture. The true challenge lies in blending business, legal, and technical expertise with strong research skills to achieve a valuation that everyone sees as fair and equitable.

If you are looking to buy, sell or transfer shares in a business in Qatar, it is important to ensure that during the valuation process, you have selected the appropriate method and resources to ascertain the right transaction value that is fair and acceptable to all parties.

Companies need accuracy about the fair value of their assets or business for a variety of reasons. Whatever the purpose, Antonio Ghaleb and Partner CPA believe that valuations are fundamentally the process for updating the decisions you make with what is likely your most important financial asset.

Our business valuation team helps firms and investors in Qatar in determining the enterprise value and supporting them through the transaction process. HLB-AG’s valuation team will deliver a strong and reliable valuation, regardless of the complexity of the case.

HLB-AG’s team specializes in valuation of unlisted companies, listed companies, intellectual property,  unincorporated businesses, associated liabilities and intangible assets.

Our team includes multi-discipline professionals, bringing the benefits of a multi-disciplinary approach to the assignments.

Our valuation service includes:

  • Valuations in the context of Business restructuring
  • Intellectual property valuations
  • Expert and litigation support work
  • Commercial valuations
  • Impairment tests
  • Fair Value’/independent expert reports
  • Audit Support

Our approach to valuing businesses is as shown below:

We use different valuation methods, and normally, any one of the methods or a combination of these are used based on our judgment and availability of data:

  • Income Approach (Discounted Cash Flow Method)
    The Discounted Free Cash Flows (“DCF”) technique is one of the most rigorous approaches to the valuation of a business. In this technique, we estimate future cash flows for the businesses, the time frame for these cash flows, and the projected free cash from operations are discounted at the weighted average cost of capital. The sum of such discounted free cash flows combined with other considerations like the perpetuity growth rate of the business, CAP rate, and terminal CAPEX helps to arrive at the value of the business.

  • Market Approach (Market Comparable)
    In this approach, data from comparable transactions – ideally within the same sector and the same region is used in order to arrive at valuations that have been obtained for companies. This approach can be used in a stand-alone manner only if there are such comparable transactions that have occurred in the recent past and also if there is reliable data available for these transactions in order to perform a meaningful analysis.

  • Asset Approach (Net Asset Value)
    This approach involves the actual verification of assets in the entity and the computation of the value of these assets. This is applicable when the realizable value of assets is significantly high. We apply this method in the case of asset-heavy valuations and work with qualified technical valuers.

While such techniques provide us with values, we do believe that the real value of an Enterprise can only be arrived at based on various other factors such as the fundamentals of the Business Model, the Management Team, the key Value Propositions that the business offers, its consumer base, etc. Our valuation team hence lays emphasis on understanding the business model and working together with the client management team to validate their strategic business plans as well as the key assumptions and risks involved. This will ensure that the valuation which is arrived at is realistic and acceptable to any interested third party.

WHY CHOOSE US?

  • Transparent Perspective: HLB-AG delivers independent and objective assessments to provide a true and fair view of your company’s value. Our Objective and transparent assessments provide clear, trust about your company’s value, empowering like never before.
  • Streamlined efficiency and Timesaving: You focus on your core business while we expertly manage the valuation process, we ensure every detail is handled with precision.
  • Professional Expertise for Confident Decisions: Gain actionable insights from expert professionals.
  • Precision and Reliability: We ensure accurate revolution free from bias and errors.
  • Tailored Solutions for Every Need: Custom valuation for financial legal and strategic purposes. Whatever your goal, we’ve got you covered.

HLB AG is an Approved Valuer under the Qatar Financial Markets Authority (QFMA). We are now authorized to conduct business valuations for listed entities and other transaction advisory services.

Frequently Asked Questions

  • Why should I hire an Adviser/consultant for business valuation services?
    Consultants offers a detailed assessment of your company’s financial health, identifying its strengths and weaknesses, this clarity supports strategic planning, risk management and attracting investors by showcasing the true value of your business.
  • How does HLB -AG find out my business’s value?
    HLB employs a thorough process that examines your finances, market dynamics, and future potential, utilizing diverse methodologies to deliver a range of valuations.
  • What methods are used for business valuation?
    Common methods include (depends on different factors):
    Income Approach (e.g., Discounted Cash Flow Analysis)
    Market Approach (e.g., Comparable Company Analysis)
    Asset-Based Approach
  • Can a valuation help attract investors?
    Yes, a professional valuation provides transparency and demonstrates the value of your business, which can inspire confidence in potential investors.

  • Can valuations vary over time?
    Yes, valuations can change based on market conditions, business performance, and economic factors. Regular updates are recommended to maintain accuracy.

 

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