Frequently Asked Questions
When should I get a valuation for my business?
You should consider getting a valuation during key moments in your business’s life—such as when you’re planning to sell, bring in a new partner or investor, or prepare for succession or estate planning. Valuations are also useful for tax reporting, resolving disputes between partners, or simply gaining a better understanding of your company’s financial position. Even if you are not actively planning a major change, a valuation can help guide your business strategy.
How Is a business valued?
Valuing a business typically involves three main approaches, each with a specific focus:
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Asset-Based Approach: Calculates the company’s worth by adding up its assets and subtracting liabilities.
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Income-Based Approach: Looks at the business’s ability to generate future profits, using techniques like Discounted Cash Flow (DCF) or Earnings Capitalization.
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Market-Based Approach: Compares the business to similar companies that have recently been sold to estimate its market value.
The best method (or combination of methods) depends on your business’s industry, financial profile, and availability of market data. Merger and acquisition valuation methods typically include the DCF approach and the market-based approach.
Why pay for a business valuation?
While free online tools and broker assessments can offer rough estimates, professional valuations are far more accurate and reliable. A paid valuation involves in-depth analysis by experienced experts who consider everything from your financial performance and market conditions to broader industry trends. This thorough approach ensures that your valuation stands up to scrutiny—especially important in high-stakes situations like mergers, acquisitions, or bringing in new investors.
How accurate is a business valuation?
The accuracy of a business valuation depends on both the quality of the data and the methods used. At InterAsia, we ensure accuracy by thoroughly analyzing market trends, validating business plans, and comparing recent transactions. Our detailed valuation reports provide a clear and reliable valuation range, giving you a well-rounded understanding of your business's worth. However, it’s important to remember that all valuations involve some degree of estimation and can evolve with new information or shifts in market conditions.
How will I receive my valuation report?
Once the valuation process is complete, we provide a detailed 25–40 page report that includes an in-depth analysis of your business and historical performance, the valuation methods considered and applied, and a summary of the valuation range. We will guide you through the key findings and highlight factors that impact your business’s value. This comprehensive report serves as a vital tool for understanding your company’s worth and shaping your future strategic decisions. We provide our valuation reports in English as standard. If you’d like a Thai version, just let us know — we can arrange it for a small extra fee.
How much does a business valuation cost?
Our fees for valuation reports are determined by the purpose, complexity, and scope of the engagement, and typically range from THB 150,000 to THB 250,000. We operate on a flat-fee basis, ensuring transparency with no hidden costs or unexpected charges. Each assignment incorporates a multi-method valuation approach, with a robust discounted cash flow (DCF) analysis as a core component. This sets us apart from many other business valuation firms, which often rely on a single valuation method or use simplified approaches such as basic earnings capitalization to estimate a company’s value.
Can I prepare for a favorable business valuation?
While many elements of a business valuation are shaped by external factors—such as market conditions, industry trends, and buyer appetite—there are still important steps you can take to help strengthen your valuation outcome. To support a favorable valuation, keep your financial records accurate and up to date. Clear accounts build confidence in your business’s performance. Structure company benefits in a way that preserves reported profits, such as using dividends instead of expensed perks. Strengthen your organizational structure to reduce reliance on key individuals; businesses with capable second-line management often command higher valuations. Finally, lower risk by diversifying your customer base, streamlining operations, and protecting sensitive data.
How long does a business valuation take?
The timeline varies based on the size and complexity of your business but typically ranges between 3 to 4 weeks after receiving the requested information.
Do you always visit the business' premises?
Most valuations can be conducted online using the information you provide, such as financial statements and business plans. However, in some cases, a site visit might be necessary—especially if your business has significant physical assets or operational factors that are best assessed in person. We will always discuss this upfront to ensure you get a thorough and practical valuation.
Can you value any business?
We have broad experience valuing businesses in many traditional industries such as manufacturing, food processing, transport & logistics, professional and industrial services. Our valuation work typically involves businesses with established revenue streams and operational histories. This includes family-owned businesses, regional operators, and mid-sized enterprises.
While we are comfortable working across a wide range of sectors, we generally do not value technology startups or businesses in highly specialized areas like AI, app development, or other emerging tech-driven fields. These sectors often have unique business models and rely heavily on future growth projections, which require specialized expertise.
Are the valuations of privately held companies comparable to those of publicly traded companies?
Because private company shares are not typically traded on an open market, valuators often apply a “Lack of Marketability Discount” to account for the challenges and costs associated with taking the company public or selling it through a broker. Additionally, ownership or investment in smaller, privately held companies usually carries greater risk. As a result, prospective owners or investors generally use higher expected rates of return when valuing these businesses.
What documents are required for a valuation?
We typically request five years of audited or finalized financial statements, the latest management accounts, and a current asset register. Depending on the valuation approach used, a business plan and financial projections may be requested to assess expected future cash flows. To support our qualitative assessment, we normally also ask for a list of key competitors as well as the top five customers and suppliers. For additional information, please refer to the ‘Process’ section.
Is my information confidential and how do I submit my documents securely?
We treat all proprietary information related to your valuation project with the highest level of confidentiality. If requested, we are happy to sign a non-disclosure agreement. For secure document collection, we use ShareFile. Upon execution of the engagement letter, you will receive a personalized upload link to submit your files safely.
How do I contact InterAsia?
You can contact us by phone at +66 970 738 554 or via email at info@interasia-advisory.com. Alternatively, feel free to submit a message through our contact form. We will respond promptly to assist with your inquiry.