Corporate Services · Valuation

Valuation Services obtain defensible, regulatory-compliant business valuations for every corporate purpose.

Business and share valuations are required across a wide range of corporate transactions — from FDI and ESOP issuances to mergers, acquisitions, buybacks, and income tax compliance — and must be conducted by a registered valuer under applicable regulatory requirements.

Valuation is not a single exercise — it is a discipline applied across multiple regulatory contexts, each with its own methodology requirements, reporting standards, and governing framework. An FDI valuation under FEMA pricing guidelines requires a different approach than an ESOP valuation under Ind AS 102, a buyback valuation under the Companies Act, or a fair market value determination under income tax law.

In India, valuations for regulatory purposes must be conducted by a Registered Valuer under the Companies (Registered Valuers and Valuation) Rules, 2017 for Companies Act purposes, or by a Merchant Banker or Chartered Accountant for FEMA purposes. Using an incorrect methodology or an unqualified valuer can invalidate the transaction and expose the company and its directors to regulatory penalties.

At Beyonte Compliances, we work with registered valuers and merchant bankers to provide credible, methodology-appropriate, and regulatory-compliant valuations for all corporate and statutory purposes.

What Our Valuation Service Covers

FDI / FEMA Valuation

Fair market value determination by a Merchant Banker or Registered CA for share issuances and transfers involving foreign investors under FEMA pricing guidelines.

ESOP Valuation

Valuation of equity shares for ESOP grant pricing under Ind AS 102 / ICAI guidance, including fair value and intrinsic value methodologies.

Merger & Acquisition Valuation

Business enterprise value and share valuation for M&A transactions — including purchase price allocation and swap ratio determination.

Buyback Valuation

Determination of the maximum buyback price under the Companies Act for tender offer and open market buyback programmes.

Income Tax Valuation (Section 56)

Fair market value of unquoted shares under Rule 11UA for income tax purposes — covering both DCF and NAV methodologies as applicable.

Startup Valuation

Pre-money and post-money valuation for seed, angel, and Series A fundraising rounds — using comparable transactions and DCF frameworks.

Goodwill & Intangible Asset Valuation

Valuation of brand, intellectual property, customer relationships, and other intangible assets for financial reporting and transaction purposes.

Insolvency & Liquidation Valuation

Asset and business valuation for NCLT insolvency proceedings, resolution plan assessment, or liquidation estate distribution.

Our Process

Purpose & Regulatory Framework Identification

Establishing the purpose of the valuation and the applicable regulatory framework to determine the correct methodology and valuer qualification required.

Information Gathering

Collecting financial statements, business plans, asset schedules, contracts, and market data required for the valuation exercise.

Methodology Selection & Analysis

Applying the appropriate valuation approach — DCF, NAV, market comparable, or income approach — with documented assumptions.

Draft Report Review

Reviewing the draft valuation report with the client and addressing any queries on assumptions, methodology, or conclusions.

Final Report Issuance

Issuing the signed valuation report in the required format for submission to regulators, investors, or counterparties.

Why It Matters

✓Regulatory-compliant valuation prevents rejection of FEMA, ROC, or income tax filings

✓Correct valuer qualification avoids invalidation of corporate transactions during scrutiny

✓Defensible methodology protects against Section 56 income tax additions on share transfers

✓ESOP valuation accuracy ensures fair pricing and correct accounting under Ind AS 102

✓Independent valuation builds investor confidence in M&A and fundraising transactions

✓Documented assumptions withstand due diligence and regulatory audit scrutiny

✓Intangible asset valuation supports accurate financial reporting and M&A negotiations

✓Insolvency valuation aids creditor decision-making and ensures fair resolution plan assessment

Frequently Asked Questions

For Companies Act purposes — including mergers, buybacks, and insolvency — valuations must be conducted by a Registered Valuer registered with the Insolvency and Bankruptcy Board of India (IBBI) under the Companies (Registered Valuers and Valuation) Rules, 2017. For FEMA valuation purposes, a Merchant Banker or SEBI-registered Category I Merchant Banker is required.

The Discounted Cash Flow (DCF) method values a business by discounting projected future free cash flows to their present value using an appropriate discount rate (typically the weighted average cost of capital). It is the most widely used income-based approach and is explicitly permitted under Rule 11UA for Section 56 income tax valuation of unquoted shares.

Yes. Under FEMA pricing guidelines, shares issued to a foreign investor cannot be priced below the fair market value determined by a SEBI-registered Merchant Banker or Chartered Accountant using an internationally accepted pricing methodology. Issuing shares below this price is a FEMA violation and may require compounding.

Section 56(2)(viib) of the Income Tax Act treats the excess of the consideration received for share issuance over the fair market value as income in the hands of the issuing company. This prevents artificial inflation of share prices in related-party transactions. A proper valuation report supports the consideration and prevents income tax additions.

Get a defensible, regulator-ready valuation for your next transaction.

Talk to our team about the right valuation approach for your specific corporate or regulatory requirement.