Define the proposed issue
Identify the issuer, proposed investors, class of security, subscription terms and transaction date. Clarify whether the valuation is intended for a corporate requirement, a cross-border transaction, tax analysis or commercial negotiation. More than one framework may need to be considered.
Understand the capital structure
Pre-money and post-money values describe different points around an investment. Existing shares, options, convertible instruments and the proposed new issue can affect ownership and economic rights. Review the fully diluted capital structure and the terms of each instrument rather than relying on the current issued share count alone.
Confirm the applicable requirements
The permitted method, professional eligibility and reporting requirements depend on the transaction and law applicable at the relevant date. Historical guidance should not automatically be used for a new issue. Coordinate the valuation brief with the company’s legal, tax and secretarial advisers before the report is finalised.
Further reading
IBBI · Registered valuers (opens in a new tab)Income Tax Department · Scope of the new Act (opens in a new tab)For general understanding. The appropriate method, professional appointment and regulatory treatment depend on the purpose, date and circumstances of the engagement.