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Business Valuation of a Company



Business Valuation of a Company


Obtaining a business valuation in Hong Kong follows the same general principles as elsewhere, but with some local considerations. Here's a breakdown:


What is Business Valuation?


Business valuation determines the economic worth of a company. It's used for various purposes such as:


  • Selling a business

  • Establishing partner ownership percentages

  • Tax purposes

  • Estate and succession planning


How is it Done in Hong Kong?


A business valuation specialist assists in getting an objective assessment of a company's value. Common methods used include:


  • Market Capitalization (Public Companies): Share price multiplied by outstanding shares.

  • Income Approach (Private Companies): Looks at future profit potential using methods like discounted cash flow (DCF).

  • Market Multiples Approach (Private Companies): Compares the business to similar companies that have been sold recently.

  • Asset-Based Approach: Values the company based on its net asset value.


Local Considerations


  • Hong Kong Standards: Valuation practices consider norms set by the company and adhere to International Financial Reporting Standards (IFRS) for fair value reporting.

  • Demand for Specialists: The demand for business valuation specialists is rising due to the growing importance of fair value reporting.


How Bestar can Help


How Bestar can help with business valuation in Hong Kong:


  • Bestar offers valuation services using the common methods mentioned earlier (market capitalization, income approach, market multiples, asset-based). We would consider Hong Kong specific factors like IFRS compliance.


For a professional valuation, contact Bestar. We can guide you through the process and provide a credible assessment of your company's value. You can ask us about our experience with business valuation, the methods we use, and our familiarity with your industry.





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