Practical Guide to Financial Due Diligence, 2nd Edition

In the complex world of business today, valuation has become an integral part of every sphere of day to day business activities. The term “fair value” is frequently used (and often misused) in every business transaction we enter into. The concept of “business valuation” in its various forms like historical cost, replacement value, net realisable value and present value are being used and interpreted to meet the requirements of varied and complex business transactions. On top of this, the onset of the pandemic (COVID-19) has thrown the business entities around the world into a whirlwind of uncertainties and challenges and has pushed the business valuation exercise into uncharted territories.

Keeping this in view, this body of work explains and interprets the following in reader friendly and lucid form:

• All the concepts revolving around business valuation,
• Extensive illustrations and case studies related to various methods of business valuation,
• Application of Ind AS, AS, IFRS and ICDS with respect to fair value measurement,
• Valuation of tangible assets, intangible assets and goodwill,
• Valuation of liabilities and provisions,
• Valuation of shares, valuation of brands and business which are used as basic ingredient to corporate restructuring,
• Concept of Economic Value Added (EVA),
• Valuation in Merger & Acquisitions,
• Salient features of the Valuation Standards issued by ICAI and International Valuation Standards issued by the International Valuation Standards Council,
• Significant judicial pronouncements related to business valuation.
• Possible impact of the pandemic on the business valuation of a target organization.