Valuation, Modeling & Economics
Strategic planning and transactions are critical moments for companies, and we guide you through valuation and business modeling implications to better understand the impact on your business.
What EY Valuation services can do for you
EYMBS LLP is one of the most highly regarded valuation firms in the country, known for it’s independence, impartiality and technical competence. We are part of a global team of valuers, sharing knowledge and expertise which facilitates seamless work across boundaries. EY’s deep financial, economics and analytics skills support our clients with better decision making involving transactions, funding capital expansion and optimizing capital efficiency.
The need for transparent and robust valuations to support corporate transactions and to meet regulatory and accounting requirements has increased due to:
- Complex corporate structures spreading across the globe which will be governed by several local laws of the respective countries
- International investors looking for cross-border investment opportunities
- Increased convergence of global accounting standards and requirements to test the investments for any value erosion
- Frequent changes in various regulatory laws and regulations such as:
- foreign exchange regulations governed by the Foreign Exchange Management Act (FEMA)
- Indian Income tax laws
- indirect tax impact on cash flows, etc.
EYMBS LLP is a SEBI registered Category 1 Merchant Banker and provides capital market services like managing offers, fund raise advisory and listing services. EY has dedicated teams providing business valuation, capital equipment, complex securities, real estate, business modeling, analytics and economic advisory.
Valuation Solutions comprises the full suite of valuation-related services delivering integrated solutions to clients, such as Business Valuation, Capital Equipment Valuation, Complex Securities Valuation and Real Estate Valuation services.
EY performs high-quality valuations of companies and individual assets that recognize the need for transparent and robust valuations which satisfies corporate, regulatory and accounting requirements. In this environment, justifying the value of assets and liabilities has grown more complex and critical for most businesses.
The CE Valuation team focuses on the valuation of capital assets including, but not limited to, production equipment, transportation assets, utility infrastructure and all other personal properties. The CE Valuation team is comprised of chartered accountants, chartered engineers and the Royal Institution of Chartered Surveyors.
Complex Securities provides analyses and valuations of a broad array of financial instruments and capital structures to support clients in understanding and quantifying the risks associated with their financial transactions. Our Complex Securities offerings help clients better understand the implications of intricate financial decisions.
The RE valuation team supports clients in valuation of all RE property types like residential, commercial and retail. We combine a profound understanding of real estate business objectives and industry best practices to better service our clients.
Our business modeling professionals have the ability to provide high quality analysis and insights, while leveraging advanced data science, mathematics and statistical skills to provide robust, evidenced-based analytics to inform our clients’ strategic and operational decision making around all elements of the capital agenda. Often reporting directly to a company’s most senior executives, we enhance our clients’ understanding of costs, benefits, uncertainties and risks to enable more confident, strategic decisions and judgements around capital allocation. We employ tools and techniques to deliver predictive and prescriptive analytics, including the use of financial modeling solutions.
Building an effective business model, whether it is to evaluate a transaction, a new market opportunity or for other strategic purposes, is a complex and difficult task. In addition, clients often place reliance on a business model and require a degree of independent comfort that such business model is free from logical errors. Our business modeling professionals help clients to carry out the model review, model support and model-build to make key decisions and improve strategic outcomes.
Transaction models (strategic, M&A, Private equity), bid pricing and bid evaluation models, project finance and restructuring models to support financing decisions, capital raising and capital allocation
- Transaction models (strategic, M&A, Private equity), bid pricing and bid evaluation models, project finance and restructuring models to support financing decisions, capital raising and capital allocation
- MIS models, forecasting models, budget variance models, performance and KPI monitoring models for operational and strategic decision-making
- Training workshops – we also offer hands-on training on the prepared model as part of effective model handover
Model Review: detailed review of financial models for arithmetic and logical accuracy, consistency with underlying documentation or pre-agreed assumptions, if any.
- Use of EY’s specialized in-house developed ACE© toolkit to do a thorough cell-by cell code review of the model
- Review of assumptions and computations in the model in line with applicable regulations, if any
- Subject matter experts to provide comfort on accounting and tax assumptions in the model
Model Enhancement: assist in developing and enhancing models prepared by clients or their advisers to provide better functionality and/or to bring it in line with industry best practices
EY Certificate in Financial Modeling and Valuation: thoughtfully conceptualized course content imparts students and professionals with specialized knowledge and practical training on financial modeling and valuation to empower them with these skills.
- Online training: E-certification in Financial Modeling and Valuations.
- Face-to-face batches:
- For corporates and individuals - batches across Mumbai, Delhi, Bengaluru held on quarterly basis
- For colleges and educational institutions – scheduled as per requirements.
- Customized trainings prepared and delivered to corporates and institutions on areas such as:
- Advanced modeling
- Sector-specific modeling
Economic Advisory enhances value by applying economic insights and analysis to real world business decisions. We use the fundamental principles of economics to address our clients’ private and public needs in the areas of policy, regulation, economic impact and commercial decision making, doing so through the combination of deep sector knowledge and strong technical skills in economics, econometrics and evidence-based quantitative analysis
We have a well-established and cohesive global practice which draws upon diverse skills, experience and perspectives from key markets and regions across the globe. VME’s Economic Advisory professionals are uniquely placed to support our clients in making better-informed, economically grounded decisions around economic impact studies, market forecasting, commercial and regulatory pricing and competition economics.
Business Economics: deploy rigorous forecasting models to identify opportunities and risks hidden within data to make informed decisions and to improve overall economic strategy. Services include:
- Demand Forecasting
- Pricing Analysis
- Behavioral Analysis
- Margin and Unit Economic Optimization
Economic Appraisal: identify key economic costs and benefits and develop estimation methodologies for microeconomic analysis to estimate the project’s Economic Internal Rate of Return (EIRR)
Regulatory Economics: advise regulators by undertaking evidence-based market study (primary data collection), stakeholder discussions, etc., advise on infrastructure projects like airports, electricity, water, port, rail and gas reflecting our deep understanding of economic regulatory frameworks by conducting:
- Competition Regulation
- Tariff Analysis
Social Intervention and Public Policy Analysis: study the socio-economic impact of welfare projects on the beneficiaries and the economy by performing social return on investment (SROI) analysis and input-output analysis.
EYMBS LLP is a SEBI registered Category 1 Merchant Banker and is well recognized among Indian regulators, stock exchanges and intermediaries. Capital Market Services offered are:
a) Rights issue
b) Open/ buy-back/ de-listing offer
c) Qualified Institutional Placements (QIP)
d) Privately placed InvITs and REITs
a) Demerger under NCLT route
b) Privately placed NCDs and NCRPS
c) Initial Public Offer (IPOs)
a) Demerger/ merger under NCLT route
b) ESOP certifications
c) Delisting as per SEBI Delisting Regulations
d) Open offer advisor
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