Corporate Assets Valuation under IBC
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Valuation plays a critical role in the IBC resolution process to achieve the objectives of all the stakeholders involved. The precise valuation of the corporate debtor is important for deciding its future and computing the value of the corporate debtor's assets. This crucial responsibility is vested upon registered valuers. The valuer is the professional who carries out inspections to help determine the current market value of property, land, stocks, shares, debentures, securities or goodwill or any other assets of the company.
This course explains what valuation means, how it is computed, and what are the key factors which impact valuation. The entire course is covered in several videos. At relevant places the authors have incorporated their practical experience and real examples where they were personally involved in their capacity as valuation experts. At the end of the course, they've also given a case study to discuss the practical application of the valuation concepts.
It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Warren Buffet- 1. Introduction
- 1.1 Welcome
- 1.2 Exercises
- 2. Valuation requirements under IBC
- 2.1 Introduction to IBC
- 2.2 Part A: Overview of insolvency process under IBC
- 2.3 Part B: Overview of insolvency process under IBC
- 2.4 Valuation requirement under the Insolvency and Bankruptcy Code
- 2.5 Exercises
- 3. Registered valuers
- 3.1 Registered valuers
- 3.2 Requirements for becoming a registered valuer and its procedure
- 4. Introduction to valuation
- 4.1 Valuation - An overview
- 4.2 Valuation base
- 4.3 Valuation premise
- 4.4 Exercises
- 5. Valuation approaches
- 5.1 Brief overview of valuation approaches
- 5.2 Income approach
- 5.3 Discount cash flow (DCF)
- 5.4 Free cash flow to Firm (FCFF)
- 5.5 Free cash flow to Equity (FCFE)
- 5.6 Terminal value
- 5.7 Market approach
- 5.8 Asset approach
- 5.9 Exercises
- 6. Most commonly applied valuation methodology for IBC valuation
- 6.1 Most commonly applied valuation methodology for IBC valuation
- 6.2 Valuation of securities or financial assets
- 6.3 Valuation of real estate holding subsidiary, joint venture or associate company
- 6.4 Valuation of inventory
- 6.5 Valuation of trade receivables
- 6.6 Valuation of intangible assets
- 6.7 Other categories of securities or financial assets
- 6.8 Valuation of plant and machinery of the corporate debtor
- 6.9 Valuation of land and building
- 6.10 Exercises
- 7. Case study
- 7.1 Valuing land, building, plant and machinery
- 7.2 Valuing land, building, plant & machinery
- 7.3 Valuing non-current investments, loans and advances and other non-current assets
- 7.4 Exercises
- 8. Structure of valuation report and documentation
- 8.1 Key contents of valuation report
- 8.2 Exercises
WHY TAKE THIS COURSE?
Though the enactment of the IBC has led to many IRP professionals, yet valuers under IBC are relatively few. Now for the first time, the profession of valuers has received a statutory recognition similar to the profession of Chartered Accountants, Company Secretary and Insolvency Resolution Professionals. From 31 January 2019 onwards, only a ‘ registered valuer’ is permitted to undertake valuation required under the Companies Act and rules made thereunder. This makes the position of a registered valuer much sought after. Their scope of work would include:
- valuation in insolvency proceedings or for meeting the requirements of the Companies Act
- help stakeholders accept deals based on the intrinsic or actual value of the assets
- valuing projects for lending made by banks
- render their services to the Government in determining the fair value of import or export items
Since the valuation of assets is central to the IBC resolution process, this course will also be useful to resolution professionals and all other stakeholders, including all creditors and the corporate debtor. It will enable each party to critically appreciate the valuation that has been arrived at and judge if the valuation that has been presented was correctly arrived at.
Instructors
Gandharv Jain
Gandharv is the Co-Founder of Finvox Analytics, a research and analytics firm. At Finvox he provides solutions for projects undertaken by global investment banking firms, valuation advisory firms, private equity funds and accounting firms. As a consultant, works on mergers and acquisitions, valuations, due diligence and business advisory matters. He specialises in conducting business valuations, raising funds for clients, and structuring corporate transactions. He advises on corporate issues, due diligence, entry and exit strategies to foreign investors, and on Corporate Law, Securities Exchange regulations. He is proficient in financial modelling and corporate finance. His valuation engagements include intangible assets valuation, purchase price allocation, option valuation, determining swap ratio for mergers, valuations under transfer pricing, shareholder disputes, gift and estate tax reporting and review of business models. He is also active in the real estate financing space.
Amrish Garg
Amrish Garg is a valuation professional and co-founder of Finvox Analytics, a research and analytics firm. He has over 14 years of experience in business valuations, fund raising, and mergers and acquisitions. He has performed a diversity of valuation and consulting engagements. He has experience in valuing companies, across geographies such as India, USA, Singapore etc., and across industries such as logistics and supply chain, healthcare, manufacturing, retail, e-commerce, consumer goods, hospitality etc. His technical skills include valuation of complex instruments and different classes of units/ shares by applying option pricing models such as BlackScholes model, Binomial model etc. Amrish Garg is a Chartered Financial Analyst with CFA Institute, USA. He is also a Chartered Accountant with the Institute of Chartered Accountants of India.
The liabilities are always 100 percent good. It’s the assets you have to worry about.
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