What methods does Shasat use for business valuation?

Shasat applies three primary approaches: the income approach (DCF, dividend discount model), the market approach (comparable company analysis using EV/EBITDA, P/E and other multiples; and precedent transaction analysis), and the asset-based approach (net asset value, adjusted book value). The method or combination is selected based on the purpose, nature of the business and available data.

When is an independent business valuation required?

Independent business valuations are required for M&A transactions, IPO preparation, IFRS 3 purchase price allocations, IAS 36 goodwill impairment testing, shareholder disputes, tax and regulatory compliance, funding rounds, dispute resolution and litigation, restructuring and insolvency proceedings, and financial reporting under IFRS 13.

What is WACC and why does it matter in business valuation?

WACC (Weighted Average Cost of Capital) is the blended required rate of return across a company's equity and debt capital providers. It is used as the discount rate in DCF valuations and in IAS 36 value-in-use calculations. Small changes in WACC can have a significant impact on the calculated enterprise value.

Can Shasat provide an expert witness valuation for a dispute or litigation?

Yes. Shasat provides independent expert witness business valuations for arbitration, mediation, shareholder disputes, contract breach damages, IP infringement claims and court proceedings. Reports are structured to meet evidential requirements of tribunals and courts, with clear methodology, transparent assumptions and sensitivity analysis.

How does business valuation work in a restructuring or insolvency context?

In restructuring and insolvency contexts, the valuation basis shifts by scenario. A going-concern valuation assumes continued operations. A forced-sale or liquidation valuation reflects value realisable under a constrained sale process. Shasat provides both, supporting lenders, administrators, creditors and boards with objective valuations that inform restructuring decisions and independent business reviews.

Business Valuation

Overview

What is Business Valuation?

Business valuation is the process of determining the economic value of an owner's interest in a company, whether for a transaction, financial reporting, regulatory compliance or strategic purpose. Shasat provides independent, audit-ready valuations that are objective, technically rigorous and clearly documented.

Our valuations serve financial reporting requirements under IFRS 13 and IAS 36, M&A transaction pricing, purchase price allocation under IFRS 3, IPO preparation, funding rounds, shareholder disputes and tax compliance. Each engagement is led by an experienced practitioner applying the methodology most appropriate to the business and the purpose.

Methodology

Three Valuation Approaches

Shasat applies the three approaches recognised by IFRS 13 and IVSC, selecting the most appropriate method — or combination — based on the nature of the business and available market data.

Income Approach

Converts future economic benefits into a present value. The primary approach for businesses with identifiable cash flows.

Discounted Cash Flow (DCF)

Dividend Discount Model (DDM)

Capitalised Earnings

WACC — discount rate determination

Market Approach

Uses prices from comparable companies or transactions to benchmark value. The most commonly applied approach in M&A.

Comparable Company Analysis (CCA)

EV/EBITDA · EV/Revenue · P/E

Precedent Transaction Analysis

Control premium assessment

Asset-Based Approach

Values the business by reference to its underlying net assets. Applied for asset-intensive businesses and liquidation scenarios.

Net Asset Value (NAV)

Adjusted Book Value

Liquidation Value

Going Concern vs Forced Sale

Use cases

When is a Business Valuation Required?

Mergers and Acquisitions

Buy-side and sell-side transaction pricing, negotiation support and SPA price mechanics

IPO and DCM Readiness

Pre-listing valuation for prospectus, investor documentation and capital markets filings

IFRS 3 Purchase Price Allocation

Post-acquisition allocation of consideration to identifiable assets and liabilities at fair value

IAS 36 Goodwill Impairment

Annual CGU recoverable amount determination and triggered impairment reviews

Startups and Funding Rounds

Seed, Series A and B, VC — investor-grade valuations for fundraising and board reporting

Tax and Regulatory Compliance

Transfer pricing, inheritance tax, capital gains assessments and regulatory filings

Dispute Resolution and Litigation Support

Independent expert witness valuations for arbitration, mediation, shareholder disputes, contract breach damages and court proceedings. Objective, defensible opinions prepared to the standards required by tribunals and courts.

Restructuring and Distressed Valuation

Going-concern and forced-sale valuations in the context of financial restructuring, insolvency proceedings, administration and independent business reviews. Supporting lenders, administrators and creditors with objective, market-referenced assessments.

Standards applied

Accounting & Valuation Standards

All Shasat business valuations are prepared in compliance with the applicable framework for your reporting jurisdiction.

IFRS 13 IFRS

IFRS 3 IFRS

IAS 36 IFRS

ASC 820 US GAAP

ASC 350 US GAAP

IPSAS 26 IPSAS

IVSC IVS IVSC

FAQs

Common Questions

Shasat applies three primary approaches: the income approach (DCF, dividend discount model, capitalised earnings), the market approach (comparable company analysis using EV/EBITDA, P/E and revenue multiples; and precedent transaction analysis), and the asset-based approach (NAV, adjusted book value, liquidation value). The method or combination is selected based on the purpose of the valuation, the nature of the business and available data.

Independent valuations are required for M&A buy-side and sell-side transactions, IPO preparation, IFRS 3 purchase price allocations, IAS 36 annual goodwill impairment testing, funding rounds, shareholder disputes, tax and regulatory compliance, dispute resolution and litigation, restructuring and insolvency proceedings, and IFRS 13 Level 3 fair value disclosures. Auditors typically require independent evidence for any material business or goodwill values in financial statements.

Yes. Shasat values early-stage companies using methods appropriate for pre-revenue or limited-history businesses, including the venture capital method, Berkus method, scorecard approach and probabilistic DCF scenarios. We support founders, CFOs and investors at seed, Series A, Series B and later stages across technology, fintech, healthcare and other sectors.

WACC (Weighted Average Cost of Capital) is the blended required rate of return across equity and debt providers, weighted by their proportions in the capital structure. It is the discount rate in DCF valuations and in IAS 36 value-in-use calculations. Small changes in WACC have a significant impact on derived enterprise value, making its accurate determination one of the most consequential inputs in any business valuation.

Yes. Shasat provides independent expert witness business valuations for arbitration, mediation, shareholder disputes, contract breach damages, IP infringement claims and court proceedings. Our reports are structured to meet the evidential requirements of tribunals and courts, with clear methodology documentation, transparent assumptions and sensitivity analysis. We operate as a party-appointed or jointly-appointed independent expert.

In restructuring and insolvency contexts, the valuation basis shifts depending on the scenario. A going-concern valuation assumes the business continues to operate and generate future cash flows. A forced-sale or liquidation valuation reflects the value realisable under a constrained sale process within a defined timeframe. Shasat provides both types, supporting lenders, administrators, creditors and boards with objective valuations that inform restructuring decisions, debt negotiations and independent business reviews.

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