Business valuation is the process of determining the monetary value of a business or a company. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership value, Joint venture valuation, merger and acquisition value, determining inheritance tax liability and divorce proceedings
Business Valuation is an inexact science at best and all of the methods used to value businesses include different degrees of subjectivity. However, each of the different methods of valuing a business have different advantages in different situations and some capture important aspects in valuing a business which are not recognised by others.
Two accounting processes underpin valuation of businesses focusing upon the distinction between the two principal accounting flows: the flow of earnings and the firm’s cash flow.
There are four basic methods of valuation: –
- the asset based approach,
- relative valuation methods,
- flow methods and;
- contingent methods of valuation.
Economic Value Added (EVA®) and how it relates to the valuation of businesses is emerging as an important concept to be incorporated in valuation of businesses as Economic Value Addition is an indication of future value. This plus the concept of option pricing theory (OPT) will be increasingly used in Business valuation in the future.
Published by Mohamed Ebrahim, MBA, CeMap, MLIBF, MCSI
Mohamed is an author of books related to Islamic Finance, Financial Reporting, Accountancy, and related topics. https://authorcentral.amazon.com/gp/books
Mohamed, is currently based in Birmingham, West Midlands, England, United Kingdom and is a Co-founder, CEO and Director of a Start-up Everest Fin Edu Tech Limited. He utilises his training and experience of over 25 years to find funding solutions for individuals, businesses and property buyers, investors and developers especially for the SME'S.
Mohamed, is a Senior Partner with Ace Associates LLP - Certified Public Accountants & CEO of Ace Financial Advisory Limited, he is a CPA Kenya and holds an MBA from The University of Manchester (UK) and B.A (Hons) from Manchester Metropolitan University, He has worked for over 25 years with firms in Kenya -Ernst & Young – Assurance Advisory Business Service & Tax Service lines, PKF Kenya Audit Senior, and Devani –Devani & Co. United Arab Emirates -Group Financial Controller - Credo Investments FZE. Canada – Mc Tavish & Co. CPA’s.
A member Institute of Directors (Kenya) and Non-Executive Directors Association (UK). He served on the ICPAK Coast Branch, Executive Council as Secretary and CPD Convener (2013-15) and from May 2016 to May 2018. Vice-Chair May 2018 to June 2020. He was commended by ICPAK in June 2015 for his services to the Accounting profession by ICPAK. Furthermore, Mohamed Ebrahim was awarded a Fellowship of the Institute of Certified Public Accountants of Kenya on.11th December 2020.
Educational & Professional details.
Mohamed speaks English, Gujerati, Hindi, Urdu, Swahili. Born in an Indian immigrant family from Gujerat India, settled on the Swahili Coast of East Africa for four (4) generations,
Bachelor of Arts (Hons) – Sustainable Performance Management
Manchester Metropolitan University
Master of Business Administration
The University of Manchester – Manchester Business School
Certified Islamic Finance Executive (CIFE)
Advanced. Certified Islamic Finance Executive in Islamic Accounting
Ethica Institute of Islamic Finance, Dubai, UAE.
ACMA, CGMA, Member, Chartered Institute of Management Accountants and Association of International Certified Professional Accountants, registered as a CIMA Member in Practice.
CPA, Practicing member
Institute of Certified Public Accountants of Kenya
FCFIP, Fellow Member -International Institute of Certified Forensic Investigation Professionals
FCT, Fellow Member, Fellow Chartered Treasurer
FFA – Fellow of the Institute of Financial Accountants
MCIArb - Chartered Institute of Arbitrators, Full Member.
MCSI: Member, Chartered Institute of Securities & Investments
Institute of Internal Auditors - Member
Currently, a Doctoral Student at the Edinburgh Business School, completed the Coursework stage, working on the doctoral thesis
Interim Award - Post Graduate Certificate in Business Research methods
Short Courses and MOOC’s
• The World Bank Group's MOOC on Financing for Development.
• Financial Markets an online non-credit course authorized by Yale University, facilitator being Professor Robert Shiller – 2013 recipient of Nobel Prize in Economic sciences
• Principles of Valuation: Time Value of Money authorized by University of Michigan
• Islamic Financial & Capital Markets -101 - & Structure and Trading of Sukuk102 – by Islamic Research and Training Institute
• Islamic Finance & Banking 101 & 102 – Islamic Modes of Finance - by Islamic Research and Training Institute
• University Teaching MOOC on Coursera by Hong Kong University.
• Oxford Brookes University Business School – Online mentoring Course
• ICPAK - Training of Trainers
PRESENTATIONS AND PUBLICATIONS
Professional Conference paper
IICFIP 2014 Global Conference “Creating a Business Culture based on ethics”
Risk Management in Islamic Financial Institutions
Publications in Professional Journals
The Accountant – Journal of the Institute of Certified Public Accountants of Kenya
• Tax Reforms 1 – Time for a Flat Tax system in Kenya – February- March 2012 issue
• Tax Reforms 2 – Specific Tax Simplification Reforms – April –May 2012 Issue
• Risk Management in Islamic Financial Institutions – December-January 2013 issue
Africa Islamic Finance Report (Volume 1 no, 2)- April- June 2016
• A case for Islamic Sharia Compliant Real Estate Investment Trust (Islamic REITS) in Kenya
Islamic Home Financing https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2618458
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