Value and valuation are concepts tied to all financial activities, financing, investment, asset management, corporate finance, financial restructuring and other financial activities somehow require valuation through their operating process.
The proper valuation of assets plays a major role in the optimal allocation of capital. Valuation pursues a wide range of goals and applications that can be addressed in the various areas of stock offering, portfolio management, mergers and acquisitions, and so on.
Mellat IB with a great experience in evaluating companies, including governmental-owned companies or companies listed on SEO/ Fara bourse Iran, offers professional services to clients in the following areas:
- IPO valuation
- Stock valuation of companies listed on the SEO/ Fara bourse Iran
- Valuation blocks of shares
- Project valuation
- Merge and acquisition valuation
- Valuation shares as collateral
Objectives of valuation
Objectives of valuation process are:
- Deciding whether to buy or sell shares
- IPO valuation in the form of block trading or smaller amounts in Stock market exchange/ Fara bourse
- Selling shares of companies not listed on capital markets
- Evaluation of mergers and acquisitions, capital restructuring, and any events that affect the company's future cash flows.
- Evaluation of company’s strategies
- Collateralize shares for banking facilities
Steps to provide valuation services
Steps to provide valuation services by Mellat IB are as following:
- Submitting a letter by the applicant company for requesting valuation service
- The letter would be answered and the draft of contract would be presented by Mellat IB
- Afterwards, the final contract shall be prepared and signed by both parties, the applicant company would pay the prepayment
- Applying for required information
- Analyzing the economic conditions, industry and company
- Predicting effective variables in valuation process
- Choosing proper valuation model
- Sensitivity analysis and scenario analysis
- Summarizing and submitting a preliminary report to receive feedback from the applicant company
- Modifying if necessary and submitting the final report
- Settling the contract
Mellat IB has evaluated over 100 different companies in field of petrochemical, steel, cement and so on.