BUSINESS AND MANAGEMENT
CONSULTANCY AND STUDIES




A. Business Valuation

Outside investors may be brought in to help enhance the market presence of corporations and businesses by investing in them. In other cases, mergers and/or acquisitions may be the appropriate strategy.
To assess the value of an existing business, a business valuation study has to be undertaken. Business valuation is a mix of art and science. The bottom line is that a business or a share in a business is worth what a buyer will pay for it. However, there are several methods of estimating a fair price for a business, some of which may not be suitable for a particular type of business.
Our approach to valuing businesses is as shown below:
We use different valuation methods and normally, any one of the methods or a combination of these are used based on our judgment and availability of data:

• Income Approach (Discounted Cash Flow Method)

The Discounted Free Cash Flows (“DCF”) technique is one of the most rigorous approaches to valuation of a business. In this technique, we estimate future cash flows for the businesses, time frame for these cash flows, and the projected free cash from operations are discounted at the weighted average cost of capital. The sum of such discounted free cash flows combined with other considerations like the perpetuity growth rate of the business and terminal capex helps to arrive at the value of the business.

• Market Approach (Market comparable)

In this approach, data from comparable transactions – ideally within the same sector and the same region is used in order to arrive at valuations that have been obtained for companies. This approach can be used in a stand-alone manner only if there are such comparable transactions that have occurred in the recent past and also if there is reliable data available for these transactions in order to perform a meaningful analysis

• Asset Approach (Net Asset Value)

This approach involves the actual verification of assets in the entity and the computation of the value of these assets. This is applicable when the realizable value of assets is significantly high. We apply this method in the case of asset-heavy valuations and work with qualified technical valuers.

While such techniques provide us with values, we do believe that the real value of an Enterprise can only be arrived at based on various other factors such as the fundamentals of the Business Model, the Management Team, the key Value Propositions that the business offers, its consumer base, etc. Our valuation team hence lays emphasis on understanding the business model and working together with the client management team to validate their strategic business plans as well as the key assumptions and risks involved. This will ensure that the valuation which is arrived is realistic and acceptable to any interested third party.


B. Feasibility Studies

A thorough feasibility study is critical for organizations to estimate their possibility of completing projects successfully. Organizations utilize feasibility studies to identify possible negative and positive outcomes from a project. This is done before investing valuable money and time for it.


A properly researched and executed feasibility study is capable of clearly identifying possible issues that can arise when a project is implemented, understanding financial, operational and potential other organizational impacts. It determines if the project will be productive after considering all the influencing factors.


If you want quality business feasibility study in UAE, you must devote the time and the money to hire an experienced organizational consultant. Our organizational consultants have extensive experience in making business plans and conducting feasibility studies.


Elements of a Feasibility Study

Our feasibility study services in Dubai comprise of several elements, and they typically include:


• Project Overview – An outline of the project, products / services offered, the business model and method of delivery.


• Market feasibility – Defines the prospective buyers, competitors, industry, the future and current market potential and sales estimations.


• Technical feasibility – Lists the data about product or service delivery, which could include labour, raw materials. transportation, technology needed, business locations etc.

• Financial feasibility – A forecast plan about the

funding required, the type of funds, and

projected P&L, Balance Sheet, Cash Flows etc.

This includes detailing the assumptions made

in the study, sensitivity analysis, and

graphical presentation of key financial data.

 

• Organizational feasibility – An explanation

of the corporate and legal frame of the

company; this might include data about the

founders, their professional history and

skills they have that can help the

company begin and continue the operations.

 

Our team keenly focuses on your business model,

customers, are familiar with technology and have

an excellent understanding of complex data. Their

skills include clear communication, multitasking,

organizational skills, as well as analytical,

observational and critical thinking.


We conduct market research independently, with

our own resources and work with leading market

research firms in the UAE to obtain authentic

market data, which, in turn, forms the foundation

of a good feasibility study.



Our deliverables to clients are in the form of

exhaustive reports and presentations, which are

backed by detailed financial models developed

using spreadsheets. We also develop summarized

project teaser documents that potential investors

might like to review before making further

decisions of investments.



We will help you assess your chances of success

and our engagement will provide the confidence

that your investors will need to participate in your

ventures.

C. Classification Services
(Contracting requirement)

All engineering consultancies and contracting companies in Abu Dhabi race to meet classification requirements during the course of this calendar year. Companies should be qualified and skilled to meet the standards in the category for which they want to be classified.

What is Classification?
Companies licensed to conduct engineering or contracting activities in Abu Dhabi must be classified by the Contractors and Consultants Classification and Engineers

 

Registration Office at the Abu Dhabi Department of Municipal Affairs. This Office will conduct a detailed review of, among other things, the company’s project experience, technical qualifications, assets and capital value, accounting team and quality, health and safety team as part of the application process. For many companies, particularly companies bidding for high value contracts, the requirements may be quite onerous. There are two different Classifications – one exclusively for Contractors and the other for Engineering companies. Though the classifying is in terms of similar factors, which include:

 

• Experience Conditions (executed projects during the previous six years)

 

D. Financial policies and procedures

Bookworks team works closely with its clients to govern their financial activities and make sure that financial transactions are properly authorized; assets are adequately safeguarded; duties are properly defined to minimize the risks of error and fraud;

• Technical Conditions (number of

specified staff (engineers & financial) with a

pre-determined number of years’

experience
• Other Conditions (ISO 9001, ISO 14001

and OHSAS 18001)
• Assets and Capital Value

How it works?
• The classification requirement will be

imposed on existing engineering companies

the next time the company’s Abu Dhabi

professional license comes up for renewal.
• Companies established in the future will

have one year from the date of initial licensing

to meet the classification requirement.
• Contractors are classified into categories of

Special, First, Second, Third, Fourth,

Fifth and Sixth.
• Each category requires that a level of

threshold criteria is met, specification the

number of Engineers that must be employed

directly on that Company, the number of

experience years that these Engineers have,

together with ISO accreditation and suitable

support staff (in some cases).

 

Bookworks for Accounting Records offers

expert services to complete your needs in

contractor classification and helping you to

build your financial profile will fulfill financial

requirements for the classification process.

 

transactions are properly supported and

comply with the applicable rules and

regulations; transactions are processed

effectively and efficiently; and business

interruptions due to staff moves are

minimized.

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