ABI ANALYTICS

BUSINESS VALUATION

Leverage Our Deep Expertise & Know-How In Business Valuation For Transactions, Regulatory Compliance & Financial Reporting

BUSINESS VALUATION: THE ART & SCIENCE OF IT

Leveraging Our Multi-Disciplinary Professionals With Deep Expertise & Know-How In Business Valuation For Transactions, Regulatory Compliance & Financial Reporting; Our Valuation Approach Encompasses A Thorough Evaluation Of All Risk & Return Drivers

ABI’s BUSINESS VALUATION SERVICES

ABI’s Business Valuation Services are focused on providing accurate and independent valuation opinion that encompasses a thorough evaluation of all associated risks and return drivers. With a team that has multi-disciplinary valuation professionals with deep expertise and experience in multiple countries, ABI incorporates the applicable valuation regulations, issues and methods.

Our valuation professionals help clients effectively quantify and value businesses, portfolios, investments, capital assets, intangible assets & intellectual property and complex securities. The key areas where our client engages us as independent valuation advisor include: Corporate Transactions (M&A, private equity deals, fund raising, business reorganizations, strategic planning, management buy-outs etc.), Financial Reporting, Compliance (tax, regulatory etc.), and investments (real estate. start-up, capital assets, intangible assets, intellectual property, traded securities etc.)

Business valuation is a critical component of strategic business decision making or for compliance with various regulatory and accounting standard requirements. As business valuation is less about number crunching and more about deep-dive understanding of the business drivers, what really differentiate effective business valuation are 1) the domain expertise of the valuation professional and 2) the rigor of the applied framework. ABI is committed to bring both these aspects on assignments it takes on.

Leveraging our flexible engagement models, our clients engages us as an extension of their internal team – either through dedicated valuation expert(s) exclusively working for the client or by engaging valuation expert(s) on project-by-project basis. As we are an independent service provider, many a time our clients engage us to provide second opinion to negotiate fairly on business valuation issues.

ABI’s ROBUST BUSINESS VALUATION FRAMEWORK

ABI is an international valuation expert with professionals having deep experience of various valuation methodologies and applicable regulations of various countries globally. For ABI, Business Valuation is all about identifying the accurate and defensible value of a business and its assets. Our valuation approach is based on a thorough evaluation of all associated risks and return drivers and we take multiple aspects into consideration during valuation of a business.

ABI follows a structured approach for business valuation, encompassing a thorough evaluation of all risk & return drivers.

OUR SERVICES PORTFOLIO

VALUATION & FAIRNESS OPINION

M&A Transactions

Corporate Restructurings & Divestitures

Buy-Outs (LBO / MBO)

Start-up / Early Stage Valuation

Patent & IP Valuation

REPORTING & COMPLIANCE

Purchase Price Allocation

M&A – Intangibles

Goodwill Impairment

Complex Securities Valuation

IFRS & Local GAAP Financial Reporting

 TRANSACTION SUPPORT

M&A

Feasibility Studies

Due Diligence

Business Modeling

Buyer & Seller Services

TAX & AUDIT SUPPORT

ESOP Valuation

Fair Value Appraisals

Model Validation

Forensic Accounting

Corporate Tax Planning

FINANCIAL INSTRUMENTS

Portfolio Valuation

Investment Evaluation

Fixed Income Instruments

Convertibles & Warrants

Structured Debt (CDO etc.)

WHY ABI ANALYTICS FOR BUSINESS VALUATION

DEEP

EXPERIENCE…

200+ Business Valuation & Advisory assignments across diverse industry sectors and geographies; from independent valuation opinion to support across the transaction cycle

Traditional Sectors: Real Estate I Infrastructure I Utilities | Manufacturing | Energy | Food & Consumer Products I Agribusiness | Banking & Financial Services I Insurance | Metals & Mining | Media & Entertainment | Healthcare | Telecommunication I Pharmaceuticals

New Age Sectors: Technology | Semiconductor | Software | Biotech | Alternate Energy I Software I Artificial Intelligence I E-Commerce & Internet-Enabled Businesses I Blockchain I Cryptocurrencies

Region: 40+ countries across North America, Europe, Asia-Pacific, the Middle East, Africa, Indian Sub-Continent

PROFESSIONAL

EXPERTISE…

100+ years of combined business valuation experience with deep expertise and knowledge of valuation for transaction, financial reporting & compliance

Team: 15 professionals with top 5-principals each having more than 10 years of business valuation experience

Qualification: MBA Finance I CFA I CPA

Experience: Investment Bank I Private Equity I Project Finance I Corporate Strategy I Business Consulting

STRUCTURED

FRAMEWORK…

Our focus on deep-dive analysis to get the story behind the numbers! We have a six-pronged structured approach for business valuation assignments encompassing

1. Assessing Macro & Industry Attractiveness & Associated Risks

2. Assessing Business & Strategies For Evaluating Potential Growth Curve

3. Creating Dynamic Financial Model Incorporating All Associated Business Drivers

4. Valuation & Scenario Analysis With Rigorous Bench-marking & Evaluation Of Growth Curve

5. Capital Structure Analysis & Value Allocation – Economic/Non-Economic Rights of Stakeholders

6. Non-Ambiguous Communication Through A Report Listing Down Assumptions & Related Reasoning

COMPLEMENTARY CAPABILITIES…

Our ability to leverage experienced professionals from various domain to quickly understand sector/geography specific nuances is an added advantage

Sector Experts: 30+ sector experts with 10+ years of average domain experience

Technology Experts: 10+ technology intellectual property experts to help understand nuances of technology and their commercialization potential

Market Research: Internal Knowledge Base of 100+ market research to quickly understand business drivers and sources of value creation / destruction

Database: Internal Database on “guideline public companies” across geographies and growth curve, with their operational and valuation multiples, that helps quickly understand factors impacting valuation

ENGAGEMENT MODELS

DEDICATED ANALYST…

Model: Analyst(s) works exclusively for a client as an extension of their internal team.

Works For: Client with regular research needs looking for stability in the team and the most cost-effective engagement.

Benefits: Same analyst (s) works with the client with steep learning curve and gains in efficiency as added benefits  I  The client has complete control over the selected analyst(s) work priorities and allocation

How It Works:

1. The client sends work profile and specific capabilities required

2. ABI shortlists analysts and organizes interview for analysts with the client

3. The client selects analyst(s) and gives a formal go-ahead with agreed upon monthly fees to be paid to ABI

4. The selected analyst(s) starts working with client from agreed upon date

5. Assigned Project Manager – a senior professional – provides local supervision and organizes training etc. for continuous growth of the analyst

6. The analyst, if needed, can work on remote desktop (VPN access) to ensure that data is not leaving the client’s network

PROJECT BASED…

Model: Analyst(s) works for the limited duration of a project.

Works For: Standalone project or short-term assignment or short-term ramp up in required research capabilities

Benefits: Client has access to specialist experts to meet the specific work requirements  I  For example, for start-up valuation the team can have a valuation expert, a sector expert and a technology expert working together

How It Works:

1. The client sends specific project requirements

2. ABI prepares an in-depth proposal document outlining the scope of the work, solution framework, team profile, key interim and final deliverable, engagement & communication governance, related timelines and commercials

3. Through mutual discussion the proposal and interim/final deliverables are finalized

4. ABI team works on the project and follows agreed upon proposal and governance framework

5. A call is scheduled after each interim deliverable to update the client on progress, get the feedback and agree on next steps

6. After approval on the final deliverable by the client, analysts are staffed on other projects

BLOCK OF HOURS…

Model: The client purchases a fixed number of research hours to meet their research needs

Works For: Clients with regular but variable work-flow and variety of work that requires varied capabilities

Benefits: Provides the “best-of-both-world” – on-demand research support as in “dedicated-analyst” engagement yet not restricted to capabilities of one particular analyst as in “project-based-engagement”.  I  No need for individual project approval from the vendor management team

How It Works:

1. The client and ABI agree on number of hours of research that the client would require in a fixed time-frame (e.g. 200 hours in a quarter)

2. The client and ABI also agree on the broad nature of research requirements and the skills / capabilities of analysts to be staffed on the client’s project

3. For each research requirements, the client team sends the scope of work and the ABI team prepares the solution framework, key interim and final deliverable and the required timeline

4. ABI team delivers the project as per the agreed framework and timeline

5. Regular engagement governance calls to ensure ABI team is aligned with client’s needs

ENGAGEMENT EXAMPLES & KNOWLEDGE LIBRARY

CASE STUDY 1

ABI Developed In-Depth Valuation Model To Support M&A Transaction

The Client

A private equity client in the UAE was involved in bolt-on acquisitions for one of its portfolio companies to enhance the company’s services portfolio and grow its geographic footprint.

Scope Of Work

The client needed in-depth analysis and financial model on the company being acquired – to help it in negotiating better – as well as financial model for the combined company to understand all sources of synergies and value enhancement opportunities for the client’s portfolio company.

The specific scope of the work included:

  • “As-Is” business valuation of both the companies; valuation based on standalone business growth potential
  • “To-Be” business valuation based on potential value of synergy from the combined operations
  • Sensitivity of business valuation with changes in key business drivers and macro/industry scenarios
  • Sensitivity of enterprise value allocation between stakeholders of both the companies under different price consideration

ABI Solution

  • ABI deployed a multi-disciplinary team comprising:
    • An expert on financial analysis & business valuation to create the financial model incorporating all relevant business drivers
    • A sector expert to guide the team on assessing the market attractiveness, competitive dynamics and sources of competitive advantages. The sector expert also guided the team on potential competitive landscape and resultant business growth scenarios for the client’s portfolio company
      • Organically build the capability versus acquiring now
      • The scenario where another competitor acquires the target company
    • An expert on technology to guide the team on existing and evolving technologies in the domain and their commercialization potential.
  • ABI team validated the historical financial statements and forecasted projections of the target company based on the company’s current growth, strategic plans and external business environment. ABI team also evaluated the target company’s sales forecasts and market share estimation based on the competitive dynamics, technological landscape and manufacturing capabilities
  • ABI analysts created an in-depth valuation model incorporating sources of valuation and synergies
    • Macro & industry attractiveness and associated risks
    • Business and strategies for evaluating companies’ potential growth curve
    • Dynamic financial model incorporating all associated business drivers
    • Valuation with scenario analysis based on rigorous benchmarking
    • Capital structure analysis for value allocation among stakeholders of both the companies
  • ABI team also leveraged the database on operational and valuation multiples from “guideline public companies” and precedent transaction multiples (including control premium paid) to validate their fundamental valuation with market appetite.

Outcome

  • Direct Outcome
    • Time-efficient as multiple teams were able to work on different aspects of the deals, making the client’s team to focus on negotiations and meeting while ABI took care of all the research work
    • Continuous communication and discussion on interim deliverable meant that the entire deal team was aligned with the same objectives
    • Scenario analysis and capital structure analysis – with its value allocation analysis among stakeholders under different scenarios – worked as a key negotiation tool for the private equity team negotiating with the target company
    • ABI also delivered M&A rationale report and presentation slides for the consideration of the board members of companies
  • Engagement Benefits
    • The private equity client leverages out analysts and domain experts on project basis thereby maintaining a lean and cost-effective structure
    • Focus on data-security and well-defined access structure on the “need-to-know” basis keeps the data and information security as the same level as is found in the internal team