Our Approach

Valuation Framework

We apply internationally recognized valuation standards and methodologies, tailored to each engagement's specific requirements. Our approach combines quantitative rigor with practical business judgment.

Standards We Follow

All our valuations are conducted in accordance with recognized professional standards, ensuring consistency, quality, and defensibility.

  • International Valuation Standards (IVS) - Global standards for valuation practice
  • IFRS / Saudi GAAP - Financial reporting requirements
  • RICS Red Book - Property valuation standards
  • AICPA / NACVA Standards - Business valuation guidance
  • SAMA Requirements - Saudi regulatory compliance

Valuation Approaches

The Three Pillars of Valuation

Professional valuers employ three fundamental approaches, selecting the most appropriate based on the nature of the asset and available data.

Income Approach

Values an asset based on the present value of expected future economic benefits.

  • Discounted Cash Flow (DCF)
  • Capitalization of Earnings
  • Excess Earnings Method
  • Relief from Royalty
  • Multi-Period Excess Earnings

Market Approach

Derives value from market transactions involving comparable assets or businesses.

  • Guideline Public Company Method
  • Comparable Transactions
  • Prior Transactions
  • Industry Multiples
  • Market Pricing Analysis

Asset-Based Approach

Values a business based on the fair value of its underlying assets and liabilities.

  • Adjusted Net Asset Value
  • Liquidation Value
  • Replacement Cost
  • Reproduction Cost
  • Sum of the Parts

Most Common Approach

Income Approach in Detail

The income approach is often the primary methodology for valuing operating businesses and income-producing assets. It focuses on the economic principle that the value of an asset is the present value of all future benefits it is expected to generate.

Discounted Cash Flow (DCF) Analysis:

  • Project future cash flows based on historical performance and growth assumptions
  • Determine appropriate discount rate reflecting risk (WACC)
  • Calculate terminal value for cash flows beyond projection period
  • Discount all cash flows to present value
  • Apply adjustments for control, marketability as appropriate

When We Use This Approach:

Operating businesses with reliable financial projections, income-producing real estate, intangible assets with identifiable cash flows, and going-concern valuations.

Transaction-Based

Market Approach in Detail

The market approach derives value from actual market transactions, providing direct evidence of what buyers have paid for similar assets. This approach is particularly compelling when good comparable data is available.

Key Methods:

  • Guideline Public Companies: Analyze trading multiples of publicly listed companies in similar industries
  • Comparable Transactions: Review prices paid in recent M&A transactions for similar businesses
  • Common Multiples: EV/EBITDA, EV/Revenue, P/E, P/B, price per unit metrics

When We Use This Approach:

When sufficient comparable market data exists, for fairness opinions and transaction support, real estate with active markets, and as a reasonableness check on other methods.

A B C D

Asset-Focused

Asset-Based Approach in Detail

The asset-based approach values a business by determining the fair value of its assets minus liabilities. This approach is particularly relevant for asset-intensive businesses or holding companies.

Key Considerations:

  • Identify all tangible and intangible assets
  • Determine fair value of each asset category
  • Value both recorded and unrecorded intangibles
  • Assess liabilities at fair value
  • Consider going concern vs. liquidation premise

When We Use This Approach:

Investment holding companies, real estate holding entities, asset-intensive businesses, liquidation scenarios, and as a floor value check.

Assets IP Debt Equity

How We Work

Our Valuation Process

A structured, transparent process ensures consistent quality and client confidence at every stage.

Initial Consultation

We meet with you to understand your objectives, discuss the scope of work, timeline, and agree on deliverables. This ensures alignment before we begin.

Data Collection

We provide a comprehensive information request list and work with your team to gather financial statements, forecasts, industry data, and other relevant information.

Due Diligence & Analysis

Our team analyzes the data, conducts industry research, identifies comparable transactions, and develops financial models using appropriate methodologies.

Methodology Selection

Based on the nature of the asset and available data, we select and apply the most appropriate valuation approaches, often using multiple methods for triangulation.

Quality Review

All valuations undergo rigorous internal peer review to ensure accuracy, consistency, and compliance with professional standards.

Report Delivery & Presentation

We deliver a comprehensive written report and present findings to stakeholders, providing clarity on our conclusions and answering questions.

Excellence in Every Engagement

Quality Assurance

Senior Oversight

Partners and directors actively involved in every engagement.

Peer Review

Independent review of methodology and conclusions.

Documentation

Comprehensive work papers supporting all conclusions.

Independence

Strict conflict checks and ethical compliance.

Questions About Our Methodology?

Contact our team to discuss how we approach valuations and how our methodology applies to your specific needs.