Business Valuation Services in Dubai

The same company can have several defensible values depending on who is asking and why. A buyer paying for control, a minority partner leaving, and a lender assessing security will each look at the business differently. That is why every engagement starts with the purpose, because it decides the basis of value, the method and the level of detail in the report.

If you are buying, a valuation works best alongside a review of the target’s books and contracts. Our due diligence service covers that side, and the findings often change the numbers that go into the valuation model.

Two valuers can use the same method and reach different answers. The difference almost always comes from a handful of judgements, so we set each one out in the report rather than hiding it in a spreadsheet.

• Normalised earnings. We remove one-off income and costs, and adjust owner salaries, related-party rent or management fees to what an arm’s length arrangement would cost. Owner-managed businesses in Dubai often need material adjustments here.
• Quality of the underlying figures. Clean, reconciled accounts carry more weight than management figures. If your books need work first, our accounting and bookkeeping team can bring them up to date.
• Discount rate. The rate combines the return equity investors expect, the cost of any debt, and premiums for company size, concentration of customers and key-person dependence.
• Working capital and net debt. Enterprise value becomes equity value only after deducting borrowings, adding surplus cash and adjusting for normal working capital. Many price disagreements start here, not in the headline multiple.
• Control and marketability. A controlling stake is usually worth more per share than a minority one, and shares in a private company are harder to sell than listed shares. Whether a discount applies depends on the purpose and on what your shareholder agreement says.
• Intangible assets. Customer contracts, trade names, licences, software and a trained team often account for much of the value in a service business, even though they rarely appear on the balance sheet.

We run sensitivity analysis on the assumptions that matter most, so you can see how far the value moves if growth is slower or the discount rate is higher.

These are the engagements where a valuation is most likely to be challenged, so the groundwork matters.

Partner and shareholder exits

We start with your memorandum or articles of association and any shareholder agreement. Many set out a valuation mechanism, a valuation date, or whether a leaver’s shares are valued pro rata or with a discount. Where the documents are silent, we agree the basis with the parties before modelling. We can act for one party, or prepare a single valuation both sides have agreed to rely on.

Disputes and claims

In a dispute, the valuation date, the evidence and a clear audit trail are as important as the figure. We keep every source document referenced, explain each assumption in terms a non-accountant can follow, and work alongside your legal advisers, who remain responsible for the legal strategy. Our role is the financial analysis, not legal advice.

Restructuring and group reorganisations

When shares, assets or whole divisions move between group companies, each transfer needs a supportable value for the accounts and for corporate tax. We value the entities or assets involved, model the position before and after, and coordinate with our corporate tax team on the reliefs that may apply.

Corporate tax has made valuation a compliance question as well as a commercial one. The Corporate Tax Law (Federal Decree-Law No. 47 of 2022) defines Market Value as the price that could be agreed in an arm’s length free market transaction between persons who are not related parties or connected persons, in similar circumstances. Several provisions turn on that figure.

• Related-party transactions. Article 34 requires transactions between related parties to meet the arm’s length standard. The result is tested using one or a combination of five listed transfer pricing methods: comparable uncontrolled price, resale price, cost plus, transactional net margin and transactional profit split. Where the result falls outside the arm’s length range, the Federal Tax Authority adjusts taxable income. A sale of shares or a business to a related party therefore needs a price that can be supported.
• Transfers within a qualifying group. Article 26 allows assets and liabilities to move between group companies at net book value, so that no gain or loss arises. The companies must be linked by at least 75% direct or indirect common ownership, have the same financial year-end and use the same accounting standards, and neither can be an exempt person or a Qualifying Free Zone Person. If, within two years, the asset is transferred outside the group or the companies stop being members of the same group, the original transfer is treated as having taken place at Market Value on its date.
• Business restructuring relief. Article 27 gives similar relief when a whole business, or an independent part of it, is transferred in exchange for shares, provided the transfer is made for valid commercial reasons and the other conditions are met. If, within two years, the transferred business is disposed of again, or shares in the transferor or transferee are disposed of outside the group, the transfer is treated as having taken place at Market Value. A valuation prepared on the transfer date is worth keeping on file for that reason.
• Gains on sale. A gain on selling a business or its assets can form part of taxable income. Corporate tax is 0% on taxable income up to AED 375,000 and 9% above that. Whether the participation exemption or another relief applies depends on the facts, and we review this before the deal closes.

For financial statements, IFRS 13 treats fair value as an exit price: what would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. We apply that basis when a valuation feeds into the accounts, such as a purchase price allocation after an acquisition.

1. Scoping call. We confirm the purpose, the subject (the whole company, a stake, a division or specific assets), the valuation date and who will rely on the report. If a bank, investor or court has its own requirements for the valuer or the format, we check them here.
2. Proposal. You receive a written scope, a list of the information we need and a fee quote, agreed before any work starts.
3. Information review. We analyse the historical accounts, management figures, forecasts, contracts and the capital structure.
4. Management discussion. We meet the owners or finance team to understand the business model, customers, pricing, risks and plans. This is where most normalisation adjustments are agreed.
5. Modelling. We build the primary valuation model and at least one cross-check, then run sensitivities on the key assumptions.
6. Draft report and walkthrough. We take you through the draft, answer questions and correct any factual points.
7. Final report. We issue the final report, with the model available where the scope includes it.

How long this takes depends mainly on how quickly the information arrives and how complete it is. We agree a timetable at the scoping stage and tell you straight away if anything is likely to hold it up.

The report is written to be read by people outside the business, such as a buyer, an investor, a bank or a tribunal. It covers:

Where the valuation supports a longer-term decision, such as preparing a business for sale, our CFO services can track the value drivers identified in the report and help improve them before you go to market.