01The short answer
Transfer pricing tests whether recurring related-party transactions, such as management fees, intra-group sales or royalties, are priced as independent parties would price them, usually by benchmarking against comparable data. Business valuation estimates the value of a whole business, a shareholding or an asset at a point in time.
02Where they meet
The two overlap when a valuable asset changes hands between related parties: a business, shares or intellectual property. The transfer pricing analysis asks whether the price is arm's length; the valuation provides the value against which that question is answered.
03Practical approach
Your transfer pricing adviser leads the analysis and the documentation. We provide the valuation they rely on, prepared on the basis they need and documented so it fits within their file.
This article explains general principles for UAE readers. Your own valuation will depend on your company, its documents and why the figure is needed, so speak to us before relying on it.