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MSME Valuation

MSME Valuation

MSME Valuation Readiness Checklist

Business bechne ya partner lane se pehle — 6 practical steps

Yah checklist un MSME promoters ke liye hai jo apna business bechne, ya kisi strategic partner / investor ko hissa dene par vichar kar rahe hain. Kisi bhi valuation discussion mein baithne se pehle neeche diye gaye chhah steps ki taiyari poori kar lijiye — taiyari hi aapki sabse badi negotiating strength hai.
 

1. Business aur Property ko alag kijiye

  •  Land aur building ko business se alag karke list kijiye — dono ki valuation alag methods se hoti hai
  •  Property ka haal ka valuation report registered valuer se nikalwaiye
  •  Tay kijiye: business + property bechna hai, sirf business, ya sirf property
  •  Agar property apne paas rakhni hai — draft lease terms taiyar rakhiye: tenure, rent, annual escalation, lock-in period, security deposit


2. Kitna hissa bechna hai — yah pehle tay kijiye

  •  Full exit chahiye, majority stake, ya minority stake — yah nirnay baaki sab kuch tay karta hai
  •  Agar full exit hai — earn-out, escrow aur holdback jaise payment structures ke liye taiyar rahiye
  •  Agar minority stake hai — aap kitne varsh aur involved rahenge, yah spasht kijiye
  •  Family members aur co-owners ki sahmati pehle le lijiye


3. 3–4 varsh ki clean financials taiyar rakhiye

  •  Pichhle 4 varshon ki audited financials aur ITR ek folder mein
  •  GST returns aur books ka reconciliation taiyar rakhiye
  •  Owner’s market salary adjust karke normalised profit nikaliye
  • Personal aur non-business expenses ko alag karke dikhaiye
  •  One-time income aur one-time expenses alag se flag kijiye
  •  Related-party transactions ki spasht list banaiye


4. Apne sabhi Intangibles ki list banaiye

  •  Licences aur registrations — factory licence, pollution consent, FSSAI, BIS, ISO, drug licence
  •  Bade customers ke vendor codes aur approval letters — yah MSME ki sabse badi chhupi hui asset hai
  •  Distribution rights aur territory agreements — aur yah bhi dekhiye ki ve assignable hain ya nahin
  •  Trademark, patent, design registration — yah zaroor check kijiye ki ve firm/company ke naam par registered hain, promoter ke personal naam par nahin
  •  Documented SOPs, quality manuals aur training material
  •  Key employees ki list — role, tenure, aur kya ve transition period mein rukenge


5. Goodwill ko realistically sochiye

  •  Sustainable surplus profit nikaliye = normalised profit − owner’s market salary
  •  Payback logic lagaiye — practically adhikansh MSME deals mein goodwill lagbhag 30 se 40 mahine ke surplus profit ke barabar baithta hai
  •  Apni promoter dependence imandari se aankiye — dependence jitni adhik, payback period utna chhota
  •  Business value aur property value ko kabhi ek hi number mein mat milaiye


6. Working Capital policy negotiation se pehle tay kijiye

  •  Pichhle 12 mahino ka average working capital nikaliye — samanyatah yahi target banta hai
  •  Tay kijiye: slow-moving aur obsolete stock ko kaise count kiya jayega
  •  Tay kijiye: 90 din se purane debtors poore liye jayenge ya discount karke
  •  Target working capital ka poora formula term sheet mein likhwaiye — handover ke din nahin
  •  Yaad rakhiye: working capital aapka phansa hua paisa hai — goodwill nahin


First meeting se pehle khud se poochhne yogya 5 sawaal

  1. Agar main 3 mahine ke liye business se anupasthit rahoon, to kya hoga?
  2. Mere top 3 customers kul sales ka kitna pratishat hain?
  3. Kya mere paas koi written customer contract hai, ya sab kuch relationship-based hai?
  4. Meri team mein kaun-kaun handover ke baad bhi rukega?
  5. Mujhe asal mein chahiye kya — poora exit, ya growth ke liye capital?


Disclaimer

This checklist is an educational aid prepared for the general guidance of MSME promoters. It is not a formal valuation, a valuation report, or legal, financial or tax advice, and it does not constitute a recommendation on any transaction. Valuation outcomes depend on the specific facts of each business, the profile of the buyer and the course of negotiation. The payback-period ranges mentioned reflect practical observations drawn from professional experience and are not statutory formulae or prescribed valuation standards. Please consult your Chartered Accountant or a registered valuer for advice specific to your case. Laws, rules and market practices change from time to time.

Chartered Accountant | Cost Management Accountant
+91-70200 45454 | www.cadhirajostwal.com | dhiraj@cadhirajostwal.com