Valuation Partners values owner-managed companies, family groups and investment-backed businesses across all seven Emirates, on the mainland, in the free zones and in DIFC and ADGM. We begin by agreeing what is being valued, why, at what date and on what basis, because the same Dubai trading company can carry a different value for a sale, a related-party transfer and an IFRS impairment test.
Situations
When UAE clients ask for this valuation
- 1You are preparing to sell, or a buyer has approached you and you want an independent view before negotiating.
- 2A partner in the LLC is leaving and the remaining owners need a figure to work from.
- 3Shares or a business are moving between related parties, and market value matters for corporate tax.
- 4Your auditor needs supportable evidence for goodwill, an acquisition or an investment carried at fair value.
- 5The family is planning succession and wants an agreed value before ownership changes hands.
- 6Shareholders disagree about value and need an objective opinion before lawyers become involved.
Who asks us
Typical clients
- Business owners and managing partners
- Shareholders in mainland LLCs and free-zone companies
- CFOs and group finance teams
- Accounting firms and corporate tax advisers
- Lawyers and family office principals
What we value
The subject of the valuation
We value whole businesses, groups and holding companies, and individual ownership interests within them. Where the subject is a particular shareholding, we value the business first and then consider what the holding entitles its owner to under the Memorandum and Articles of Association and any shareholders' agreement.
UAE businesses often carry items that a buyer treats very differently from the accounts: end-of-service gratuity obligations, balances owed to or by the owners, related-party rents and service charges, and licences that may or may not transfer. Each is identified and dealt with explicitly rather than left inside a headline multiple.
Our method
How we reach the figure
We draw on the income, market and asset approaches. For most profitable trading companies, value is driven by maintainable earnings: profit adjusted for one-off items, owners' remuneration that differs from a market salary, and income or costs that would not survive a change of ownership. Discounted cash flow analysis is used where the future is expected to differ from the past, such as a business in rapid expansion across the GCC.
Market evidence is used carefully. Published transaction data for private UAE companies is limited, so comparables are drawn from regional and international listed companies and transactions and adjusted for size, liquidity and country risk. We explain the reasoning rather than applying a rule-of-thumb multiple.
Where several approaches are relevant, they are used to test each other, and the report explains how a single figure or a range was reached.
| Income | Sustainable profit or projected cash flows | Usual starting point |
|---|---|---|
| Market | Regional and international comparables, adjusted | Cross-check |
| Asset | Net assets, for asset-rich or loss-making businesses | Where relevant |
In the UAE
Enterprise value and equity value in UAE companies
Enterprise value measures the operating business. To reach the value of the shares, we deduct borrowings and debt-like items, add surplus cash and adjust for working capital that is above or below a normal level. In the UAE, the accrued end-of-service gratuity liability, unpaid dividends, owner current accounts and deferred licence or visa costs are frequent debt-like items, and they can move the equity value materially.
Value drivers
Points that move the value
- Quality of earnings
- How recurring and well evidenced the profits are, and whether they depend on a few customers, government contracts or a single distributor relationship.
- Owner dependence
- Whether trade relationships, licences or key contracts sit with the owner personally rather than with the company.
- Licences and transferability
- Whether trade licences, agencies, permits and leases would continue under new ownership or on a share transfer.
- Working capital
- Receivable collection periods, stock levels and supplier terms, which often differ sharply from international norms.
- Related-party arrangements
- Rents, management fees and trading with connected businesses that may not be on market terms.
- Regional risk and growth
- Exposure to particular markets, sector cycles and the credibility of expansion plans.
Documents
What we will ask you for
- Audited financial statements for the last three years and current management accounts
- Budgets or forecasts and the assumptions behind them
- Memorandum and Articles of Association and any shareholders' agreement
- Trade licence details and the list of activities
- Details of owner remuneration, related-party balances and transactions
- End-of-service gratuity calculations and headcount
- Major customer and supplier contracts, leases and agency agreements
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
Depending on the purpose, the deliverable ranges from a concise valuation letter to a full report setting out the scope, the information relied on, the business and its market, the approaches considered, key judgements and the conclusion with sensitivity analysis.
Every report records the purpose, basis of value and valuation date, so that anyone reading it later can see exactly what question it answers.
Timing
A single trading company with audited accounts can often be valued within two to four weeks of receiving complete information. Groups, multiple jurisdictions and formal reports take longer, and we confirm the timetable when the scope is agreed.
Fees
Fees depend on the size and complexity of the business, the number of entities, the quality of the records, the purpose and the type of report. We quote in writing before any work starts.
What affects the feeCompare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Do you value businesses outside Dubai?
- Yes. We act for clients in Abu Dhabi, Sharjah and the Northern Emirates, and for UAE groups with subsidiaries elsewhere in the GCC or internationally.
- Can you value a company whose accounts are not audited?
- Yes, although we will discuss how reliable the figures are and may need more supporting detail. The report states the information relied on and its limitations.
- Will the valuation be in dirhams?
- Usually, yes. We can also present values in US dollars or another currency where the shareholders or the transaction require it, stating the exchange rate used.
- Is a valuation the same as an audit?
- No. An audit gives an opinion on the financial statements. A valuation gives an opinion of value for a defined purpose, using the financial statements as one of its inputs.