Valuation is usually triggered by a decision, transaction, reporting requirement or disagreement. Identifying the trigger is the first scoping step.
Owners and investors use valuation to frame negotiations, test whether a proposed price is reasonable, evaluate dilution and understand the financial implications of deal terms. The negotiated price may differ from an independent indication of value because of synergies, control, urgency or strategic considerations.
Valuation may support purchase price allocation, goodwill or asset impairment testing, fair value measurement, share-based payments, financial instruments and other accounting estimates. Work intended for audit review normally needs stronger documentation and traceable assumptions.
Transfers of shares can require support for market value or net asset value. IRAS states that share duty is generally based on the actual price or value of shares, whichever is higher. Tax-driven work should be scoped around the applicable rule and evidence expected by the authority.
Disputes can involve minority interests, alleged oppression, damages, breach of contract or division of assets. The valuation date, legal assumptions, access to information and expert evidence requirements can materially affect the work.
Lenders, investors and boards may request valuation to assess debt capacity, collateral support, covenant headroom or the economics of convertible and preference instruments.
Family succession, employee buy-outs, group reorganisations and strategic planning may benefit from a structured view of value, key drivers and risk—even when no immediate sale is planned.
It converts assumptions about growth, margins, risk and capital needs into a coherent financial framework.
It gives boards, investors, auditors and counterparties a common basis for discussing value and uncertainty.
It exposes concentration, customer dependency, working-capital needs, asset intensity and forecast sensitivity.
Review the practical checklist of financial, business, asset, contract, intangible-asset and startup information commonly requested.
This guide is educational and not legal, tax, accounting or investment advice. Requirements change; confirm the current position with the relevant adviser or authority.