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Company valuation in Dubai is the work of estimating what a business is worth and writing down how you got there. Owners ask for it before selling, when a partner leaves, when new investors come in, for a shareholder dispute, or to set a fair price for shares in a family business.
What drives a valuation
A valuer looks at what the business earns, what it owns, what it owes, how steady the income is and what similar businesses have sold for. The same company can have different values for different purposes. A forced sale, a share transfer between partners and a sale to a strategic buyer do not need the same assumptions.
Common methods
| Method | How it works | Fits best |
|---|---|---|
| Income approach | Projects future cash flows and discounts them to today | Profitable, stable companies |
| Market approach | Compares with sales or listed companies of similar kind | Sectors with visible comparable deals |
| Asset approach | Adds up assets and subtracts liabilities at fair value | Property, holding and asset-heavy firms |
Valuers often use two methods and explain the gap. Be wary of a single figure with no method behind it.
What a good report contains
- The purpose and the date of valuation.
- The standard of value used, for example fair market value.
- The documents relied on and any limits on the work.
- The method, the key assumptions and a sensitivity range.
- Adjustments to the accounts, such as owner costs or one-off items.
- The conclusion, and who may rely on the report.
If a report lacks assumptions or a date, ask for them before you use it with anyone else.
How it relates to other work
A due diligence review tests the figures that feed a valuation, so buyers often commission both. An external audit is a different product, an opinion on past financial statements. A part-time finance lead through CFO services can prepare the forecast a valuer will test.
How to choose a valuer
- Licence. Confirm the firm holds a valid Dubai or free zone trade licence for the services sold.
- Named professional. Ask who signs the report and what their valuation experience is.
- Independence. The valuer should have no stake in the outcome. If the firm also advises one side of the deal, ask how that is managed.
- Fit for purpose. Some uses, such as court matters or regulated filings, may need a specific type of professional. Check the requirement with the body asking for the report.
- Method. Ask which approach they expect to use and why.
What to ask in a quote
Purpose, valuation date, documents needed, named team, draft and final delivery dates, number of review meetings, who may rely on the report, and what extra work costs. Prices are not usually published. Gather several quotes through get quotes and compare what each one covers.
Timing in general terms
The time depends mostly on how fast you supply documents and how many entities sit in the group. Plan a round of questions after the first draft, since the valuer will test your forecast and may adjust it.
Common problems to avoid
Owners sometimes arrive with a number in mind and ask the valuer to support it. A credible valuer will not do that, and a report written that way will not survive a buyer's questions. Share the facts, including the weak ones, and let the method produce the range.
Be careful with stale accounts. A valuation built on figures that are many months old needs updating before use. Keep a short note of any large events since the valuation date, such as a lost customer or a new contract, and tell the valuer before the report is finalised.
