Transaction Advisory
Overview
This includes but is not restricted to Income Tax, TDS (Tax Deducted at Source), VAT (Value Added Tax), Service Tax, Inheritance and Property Taxes, Sales Tax, etc. Apart from sourcing and preparing the legal documents and seeing through procedures involved in these, we also provide consultation services with respect to the same.
Due Diligence
Whether a legal obligation or a voluntarily withstood investigation, due diligence of concerned parties, ventures, projects, individuals or firms is generally undertaken early on in a business relationship. This assessment study will compile information on a majority of quality parameters so that decision makers and company owners can take wise decisions, including smart choices and moves for their business and financial arenas.
Transaction Structuring
1. Mergers & Acquisition
The consolidation of two or more companies into a larger entity can be quite an unpredictable journey, from start to finish. Where companies are constantly acquiring other companies or splitting into smaller groups and fractions, these decisions are usually made by the company CEO’s to move the business forward, in a positive direction. Mergers are more than just ideological partnerships. Mergers and demergers are now common practice all over the world in order to ensure a company’s or firm’s growth, expansion, progress, or survival. In India, these concepts are elucidated upon in The Companies Act, 2013. Merger agreements all generally follow a fixed format. The content of the agreement, of course, will vary according to the different needs of our clients. The terms will specify every aspect of the merger, the entities involved, the related distribution of powers and finances, etc.
2. Demerger or Sale
Simplistically speaking, this kind of corporate restructuring involves the opposite of a merger – an organization or company is divided into smaller faction(s) of operations. There are various rules that govern mergers, acquisitions and demergers of those firms or entities registered with them. We perform Audits of the concerned entity, along with a due diligence report and then draw up the perfect set of terms and conditions for the contract, fix the exchange ratios, etc.as per requirement.
3. Financial Restructuring & Capital reduction
A thorough understanding of company laws, financial management, risk and benefit evaluation and a keen business sense are all vital to the process of restructuring an entity’s finances and reorganizing its liabilities and assets. Here, considerable and key changes are made to a company’s structure and operations, usually as a solution to existing problems in the company that might lead to greater financial and operational risks. Restructuring may also occur as an effect of transfer of ownership, merger, or as a response to a buyout, etc. Advisors and experts with sound legal and financial expertise and knowledge are usually hired to consult and execute the transaction and negotiation processes. This is where our team comes in with their expertise.
Valuation
1. Business
When selling or buying a business or a company, it is crucial for both parties to have a clear and honest idea of the economic value of the business. There are various processes in business valuation that are part of determining the price. In many cases, both parties tend to hire a joint expert to assist partly or conduct in entirety, the process of business valuation. This is primarily imperative because what a business is worth or should be worth means different things to different people, this process is largely influenced by the specific need of each client, while also being influenced by the present economic scenario and needs, national and international policies, etc. Business valuation procedures are usually of three kinds: Income-Based Business Valuation methods, Asset-based Business Valuation methods, and Market-Based Business Valuation methods. More often than not, multiple methods are simultaneously used to arrive at a wholesome, well-rounded estimation of the value or worth of assets.
2. Shares
Depending on whether the company is private or public, the share valuation process can vary a lot. Share valuation needs to be done every time a business entity goes into finacial and capital restrucring. Shares are valued according to their Cost Value, Capitalized Value, Book Value, Face Value, Market Value and Fair value. There are many methods that financial experts, CA’s and professionals use to value shares: Average (Fair Value) Method, Dividend Yield Method, Net Assets Value (NAV) Method, Earning Capacity (Capitalization) Method, Return on Capital Employed Method, Price-Earnings Ratio Method, etc.