Business valuation in Nepal serves multiple purposes — from M&A transactions and regulatory compliance to financial reporting and dispute resolution. The choice and application of valuation methodology must reflect both international best practices and the practical realities of Nepal's market.
Valuation Approaches
Three primary approaches are employed in business valuation: the income approach (discounted cash flow, capitalisation of earnings), the market approach (comparable company analysis, precedent transactions), and the asset-based approach (net asset value, liquidation value).
Nepal-Specific Considerations
Valuation in Nepal requires consideration of limited market data availability, regulatory constraints on certain transactions, foreign exchange considerations, and sector-specific regulatory frameworks that affect cash flow projections and risk assessment.
Best Practices
Robust valuations typically employ multiple methodologies, with the weighting and reconciliation of results reflecting the specific circumstances of the valuation subject and purpose. Documentation of assumptions, data sources, and methodological choices is critical for defensibility.
BGNA Perspective
Our valuation practice combines international valuation methodology with deep understanding of Nepal's market dynamics, regulatory environment, and commercial realities.