A private company's shares have no market price, so the law and counterparties fall back on a valuation whenever value needs to be pinned down. The moments arrive more often than founders expect — and almost always reward being ready before the event.
The moments that call for one
- Raising funds — investors price the round, and tax rules expect the issue price to rest on a defensible valuation.
- Issuing or granting ESOPs — to set the exercise price and the perquisite value fairly.
- Issuing or transferring shares — income-tax and FEMA rules look closely at the price when shares move, especially to or from non-residents.
- Bringing in or buying out a shareholder, or a family settlement — everyone needs a number they can accept.
- Mergers, demergers and restructuring — to fix swap ratios and satisfy the approving authorities.
- Disputes, regulatory filings and financial reporting — where an independent, documented value is required.
Why timing decides the outcome
A valuation done in time shapes the transaction — the issue price, the swap ratio, the tax position — while there's still room to plan. Done after the fact, it can only describe what already happened, sometimes with an avoidable tax cost attached. The difference is usually one early conversation.
What makes a valuation hold up
Not the headline number, but the working behind it: the right method for the purpose, sound assumptions, and documentation that stands before auditors, investors and tax authorities — in India and abroad. That's the standard we build every report to. If any of the moments above are on your horizon, talk to us before the deadline, not after.