Buying or selling a business
Develop a reasoned reference point for negotiations and review the assumptions behind an asking price.
BWMC / Business value
Understand the value drivers behind your business before an ownership change, transaction or strategic decision. BWMC helps define the valuation question, assess the available information and explain the resulting analysis.
Develop a reasoned reference point for negotiations and review the assumptions behind an asking price.
Assess the specified ownership interest, taking account of the engagement purpose and relevant shareholder rights.
Support discussions about investment, ownership transition and longer-term business planning.
Discuss restructuring, financial reporting, purchase price allocation, impairment or disputes. The required expertise, framework and intended users must be agreed before acceptance.
The method follows the purpose and evidence. No single multiple or formula suits every company.
Discounted cash flow estimates what future business cash flows are worth today. Forecast quality, growth assumptions and the discount rate influence the result.
Uses evidence from comparable businesses or transactions. Differences in size, growth, profitability, risk and deal terms need to be considered before applying a multiple.
An adjusted net asset analysis considers the values of the underlying assets and liabilities. Its relevance depends on the business and purpose; it may not capture all the value of an operating business.
For background on approaches and scope, see the IVSC glossary and International Valuation Standards.
The final checklist is tailored to the engagement. Begin with a general enquiry; agree secure document sharing before sending confidential records.
The proposal confirms the actual deliverables, responsible professionals and review process.
Illustrative example / fictional figures
This simplified example shows why the value of the operating business may differ from the value attributable to shareholders.
| Illustrative item | AED |
|---|---|
| Assumed normalised EBITDA | 1,000,000 |
| Assumed multiple (example only) | 4.0× |
| Illustrative enterprise value | 4,000,000 |
| Add: assumed surplus cash | 500,000 |
| Less: assumed debt | (1,000,000) |
| Illustrative equity value | 3,500,000 |
EBITDA means earnings before interest, tax, depreciation and amortisation. The 4.0× multiple is invented for this example, not a UAE market benchmark or recommendation. Actual assignments may require working-capital, debt-like, ownership-interest and other adjustments. This is not a valuation of your business.
Agree the purpose, scope, valuation date and intended users.
Collect information, discuss operations and identify evidence gaps.
Assess suitable methods, assumptions, adjustments and sensitivities.
Present the agreed report and discuss its conclusion and limitations.
It estimates the value of a defined business or ownership interest at a stated date, for an agreed purpose and basis of value. The conclusion depends on the evidence, assumptions and scope of work.
No. Enterprise value generally refers to the operating business before allocating value between debt and equity holders. Equity value reflects adjustments such as debt, surplus cash and other agreed items. The report should explain the bridge between the two.
Not necessarily. Negotiations, financing, due diligence, buyer-specific benefits and transaction terms can lead to a different price. A valuation is not a guaranteed offer or sale outcome.
We first assess the business stage, available evidence and purpose. Limited history or uncertain forecasts can widen uncertainty and affect the methods and scope. We confirm whether an appropriate assignment can be accepted after this review.
A timetable and fee are provided after reviewing the purpose, entity structure, data quality and required deliverable. Missing records, complex ownership or specialist requirements can extend the work; there is no single fee or completion time for every business.
Tell us the intended recipient before engagement. Their requirements, permitted reliance and any required credentials or specialist involvement must be confirmed. A report prepared for internal planning is not automatically suitable for another use, and acceptance cannot be guaranteed.
The applicable standards, basis of value, scope and reporting requirements are agreed for each assignment. Referencing a recognised method alone does not establish full IVS compliance. Any statement of compliance must be supported by the work performed and report issued.
No. These have different objectives and scopes. A valuation may use management information; it does not automatically provide audit assurance or a comprehensive investigation of the business. Any additional work is scoped separately.
General service information reviewed on 14 September 2026. Assignment-specific requirements and the applicable valuation framework are confirmed before work begins.
Tell us your business sector, valuation purpose and intended timeline.
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