Valuation Services

Independent Business, Share, and Asset Valuation Services

Last Updated: February 2026

Valuation is as much an art as it is a science. Whether for regulatory compliance, investment analysis, or financial reporting, an accurate and defensible valuation is crucial. Neo Consulting Private Limited offers comprehensive valuation services backed by rigorous methodology and industry expertise. We assist startups, SMEs, and large corporates in determining the true value of their business and assets.

        Why Choose Us for Valuation?
        Registered Valuers: Services by IBBI Registered Valuers (SFA)
Comprehensive Approach: Using DCF, Market Multiples, and Cost methods
Regulatory Compliance: Reports compliant with Companies Act, Income Tax & FEMA
Deal Advisory: Valuation support for M&A and fundraising
Defensible Reports: Detailed reports that stand up to scrutiny

    

Core Valuation Services

1. Business Valuation

Determining the economic value of a business or company unit.

Startups: Valuation for seed/angel/VC funding rounds using DCF and other relevant methods.
Mergers & Acquisitions: Buy-side and sell-side valuation for deal negotiation.
Joint Ventures: Determining swap ratios and equity contribution.
Exits: Valuation for promoter exit or buyback of shares.

2. Share Valuation (Regulatory)

Mandatory valuations under various laws:

Income Tax Act

Section 56(2)(viib) - Angel Tax: Valuation of shares issued at premium to residents (DCF method mandatory).
Section 50CA: Valuation of unquoted shares for capital gains purposes.
Rule 11UA: Determination of Fair Market Value (FMV).

Companies Act, 2013

Section 62(1)(c): Preferential allotment of shares.
Section 42: Private placement of securities.
Sweat Equity/ESOPs: Valuation for issuing shares to employees.

FEMA / RBI

Valuation for Foreign Direct Investment (FDI) into India.
Valuation for Overseas Direct Investment (ODI) by Indian entities.
Transfer of shares between Resident and Non-Resident.

3. Intangible Asset Valuation

Valuation of non-physical assets which often drive modern business value.

Brand Valuation: Valuing trademarks and brand equity.
Intellectual Property: Patents, copyrights, software, and technology.
Customer Relationships: Valuation of customer contracts and data.
Goodwill: Assessment for purchase price allocation (PPA).

4. Financial Reporting Valuation

Valuation requirement under Ind AS / IFRS:

Ind AS 113: Fair value measurement of financial instruments.
Ind AS 36: Impairment testing of assets and goodwill.
Ind AS 102: Share-based payment (ESOP) valuation.
Ind AS 103: Business combination and PPA.

5. Startup Valuation Services

Specialized services for the startup ecosystem:

Pre-money and post-money valuation.
Valuation for convertible notes and CCPS.
Justification of high premiums for early-stage companies.
Compliance with "Angel Tax" provisions.

Valuation Methodology

We employ globally accepted valuation approaches:

Income Approach: Discounted Cash Flow (DCF) method, capitalizing earnings. Best for businesses with cash flow projections.
Market Approach: Comparable Company Multiples (CCM), Comparable Transaction Multiples (CTM). Used for relative valuation.
Cost/Asset Approach: Net Asset Value (NAV) method, Replacement Cost. Used for holding companies or distressed sales.

Valuation Report Contents

Our comprehensive valuation reports include:

Executive Summary & Purpose
Business & Industry Overview
Financial Analysis & Projections
Valuation Methodology Selection & Rationale
Calculation & Conclusion of Value
Assumptions & Limiting Conditions

Frequently Asked Questions

Why do I need a valuation report for my startup?

If you are raising funds from investors, you need a valuation report to: (1) Determine how much equity to dilute, (2) Comply with Income Tax Act (Section 56) to ensure the premium isn't taxed as income, and (3) Comply with Companies Act for preferential allotment of shares.

Who can issue a valuation report?

For Income Tax purposes (Rule 11UA), a Chartered Accountant (CA) can issue the report (except for DCF method which requires a Merchant Banker). For Companies Act/IBBI purposes, only a Registered Valuer (SFA class) can issue the report. For FEMA, a CA or Merchant Banker can issue it.

What is the "Angel Tax" valuation issue?

If a private company issues shares to huge residents at a price exceeding the Fair Market Value (FMV), the excess is treated as income and taxed. A proper valuation report (usually DCF by Merchant Banker) helps justify the premium and avoid this tax.

What method do you use for valuation?

The method depends on the purpose and stage of business. For established profit-making companies, we use a mix of DCF and Market Multiples. For early-stage startups, DCF is preferred. For asset-heavy/holding companies, NAV is used. We select the most appropriate method as per applicable standards.