Business Valuation Services in Nigeria
Understand Your Business Worth. Make Informed Decisions. Unlock Value.
Business valuation is not just about arriving at a number—it is about understanding the economic value of your business and the drivers that create that value. Whether you are planning a sale, raising capital, resolving a shareholder dispute, or preparing for financial reporting, knowing the true worth of your business is essential for making informed decisions. At Qeeva Advisory Limited, we provide professional business valuation services using established methodologies to help you understand what your business is worth and why.
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Why Nigerian Businesses Need Professional Valuation Services
Nigeria’s business environment is characterized by complexity, from currency volatility and regulatory shifts to infrastructure challenges and evolving market dynamics. For investors, private equity firms, and corporate entities, making informed decisions in this market is impossible without high-fidelity financial insights. Business valuation provides the transparency and structural integrity required to move from a letter of intent to a successful transaction in one of the world’s most dynamic frontier markets.
Here are the most critical scenarios where professional valuation is essential.
Mergers and Acquisitions – Buying or selling a business requires an accurate valuation to ensure a fair price. Valuation is one of the most critical yet misunderstood areas of financial reporting, supporting transactions and investment decisions.
Capital Raising and Investment – Investors and lenders need to understand the value of your business before committing capital. A professional valuation provides the credibility needed to attract investment.
Shareholder Disputes and Partner Exits – Disputes among shareholders or partners often require an independent valuation to resolve matters fairly. Professional valuation ensures that all parties have confidence in the outcome.
Financial Reporting and IFRS Compliance – Nigeria’s accounting standards require fair value assessments for financial reporting. Whether you are preparing financial statements for regulatory compliance, seeking investment, or planning a transaction, valuation is essential. IFRS 3 mandates Purchase Price Allocation following acquisitions, requiring the allocation of purchase price to the fair value of identifiable assets acquired and liabilities assumed.
Succession Planning and Estate Administration – Transferring a business to the next generation or settling an estate requires an accurate valuation to ensure fair distribution and tax compliance.
Litigation and Dispute Resolution – Valuation is often required in legal proceedings, including divorce settlements, shareholder disputes, and commercial litigation.
Tax Compliance – Tax authorities require accurate valuations for capital gains, inheritance tax, and other tax purposes.
The Solution: Professional Business Valuation Services
We provide professional business valuation services using established methodologies that are internationally recognised and tailored to the Nigerian context. Our approach combines rigorous financial analysis, deep industry knowledge, and practical experience to deliver valuations that stand up to scrutiny.
At Qeeva Advisory, we understand that valuation in Nigeria is a nuanced exercise that goes beyond standard arithmetic. It involves adjusting global valuation frameworks to fit the local reality. Whether for a statutory audit, a shareholder buyout, or a cross-border acquisition, the valuation must account for the “Nigeria Risk Premium”.
Key valuation considerations in Nigeria include:
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Currency Volatility – With the unification of exchange rates, valuations must be stress-tested against currency fluctuations.
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Inflation and Interest Rates – Determining the appropriate discount rate requires a deep understanding of local inflation trends and sovereign risk.
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Sector-Specific Drivers – Different sectors have unique value drivers. For Oil and Gas, we model complex production-sharing contracts. For Fintech, we focus on user acquisition costs and lifetime value.
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Intangible Assets – In Nigeria’s service-oriented economy, intangible assets like brand reputation, intellectual property, and customer relationships often hold more value than physical assets.
Our Comprehensive Business Valuation Services
We offer end-to-end business valuation services tailored to the Nigerian business environment.
Valuation for Transactions and Corporate Events
We provide valuation services for a wide range of corporate transactions and events.
Mergers and Acquisitions Valuation – We provide valuations for mergers, acquisitions, divestitures, and other corporate transactions. We help you understand the fair value of businesses being bought or sold.
Private Equity and Venture Capital – We support fundraising, founder exits, and shareholder restructuring with valuations that meet investor expectations.
Capital Raising – We provide valuations that support equity and debt fundraising, helping you attract investment at the right price.
Fair Value Assessments – We determine fair value for financial reporting, tax purposes, and regulatory compliance.
Valuation for Legal and Dispute Resolution
We provide valuation support for legal and dispute resolution matters.
Shareholder Disputes – We provide independent valuations for resolving disputes among shareholders or partners.
Litigation Support – We provide expert witness testimony and valuation reports for legal proceedings.
Expert Reports and Testimony – Our professionals are experienced in providing expert testimony in courts and arbitration proceedings.
Valuation for Financial Reporting
We provide valuations that meet IFRS and regulatory requirements.
IFRS 3 Purchase Price Allocation – We allocate purchase price to the fair value of identifiable assets acquired and liabilities assumed following acquisitions.
Impairment Testing – We conduct impairment assessments for goodwill and other intangible assets.
Fair Value Measurement – We determine fair value for financial reporting purposes in accordance with IFRS 13.
Valuation of Intangible Assets
We value the assets that often drive the majority of business value.
Intellectual Property Valuation – We value patents, trademarks, copyrights, and other intellectual property. BUA Foods derives nearly 93 per cent of its enterprise value from intangible assets.
Brand Valuation – We value brand equity and brand reputation.
Customer Relationships – We value customer relationships and contract portfolios.
Goodwill Valuation – We value goodwill in business combinations.
Valuation for Specialist Assets
We provide valuation for specialist asset classes.
Real Estate Valuation – We value residential, commercial, and industrial properties for sales, financing, and property tax assessment.
Plant, Machinery, and Equipment – We provide valuations for plant, machinery, and equipment.
Portfolio Valuations – We value portfolios for pension funds, REITs, and other investment vehicles.
Transaction Advisory and Due Diligence
We provide end-to-end support for business transactions.
Financial Due Diligence – We provide professional financial due diligence to identify risks, validate earnings quality, and ensure compliance. In Nigeria, FDD is arguably the most critical stage of the M&A lifecycle—it is the process of looking “under the hood” to validate that the financial statements reflect operational truth.
Quality of Earnings Analysis – We analyze earnings quality to ensure that valuations are based on sustainable cash flows.
Working Capital Analysis – We analyze working capital requirements, which is crucial in Nigeria where supply chain disruptions often force companies to hold higher inventory levels than their global peers.
Valuation Methodologies
We use internationally recognised valuation methodologies, selecting the most appropriate approach for each engagement.
Income Approach
The income approach values a business based on its expected future cash flows. It is the most commonly used valuation method for high-growth sectors like Fintech and Agribusiness.
Discounted Cash Flow (DCF) – We project future cash flows and discount them to present value using an appropriate discount rate. The DCF method is frequently utilized for Nigeria’s high-growth sectors. However, determining the appropriate discount rate (WACC) requires a deep understanding of local inflation trends and sovereign risk.
Capitalized Earnings – We value businesses based on normalized earnings and an appropriate capitalization rate.
Market Approach
The market approach values a business by comparing it to similar businesses that have been sold or are publicly traded.
Comparable Company Analysis – We benchmark valuation multiples against publicly traded companies in similar industries.
Precedent Transaction Analysis – We analyze multiples paid in comparable transactions.
Guideline Public Company Method – We use valuation multiples derived from publicly traded companies.
Asset-Based Approach
The asset-based approach values a business based on its underlying assets and liabilities.
Asset Accumulation Method – We value individual assets and liabilities to determine net asset value.
Liquidation Value – We determine the value of a business if its assets were sold and liabilities paid off.
Adjusted Net Asset Value – We adjust asset values to reflect fair market value.
Industries We Serve
We provide specialized valuation services across multiple sectors in Nigeria.
Financial Services – We value banks, insurance companies, and other financial institutions for regulatory compliance, transactions, and financial reporting. Accounting firms are becoming highly attractive acquisition and partnership targets due to increasing regulatory scrutiny, tax reforms, and foreign investment activity.
Technology and Fintech – We value technology companies with a focus on intellectual property, recurring revenues, scalability, and growth potential. In software publishing businesses, valuation is largely driven by intellectual property, recurring revenues, scalability, and growth potential.
Manufacturing – We value manufacturing companies with a focus on assets, capacity utilization, and long-term contracts.
Oil and Gas – We value oil and gas companies, modeling complex production-sharing contracts and local content requirements.
Real Estate and Construction – We value real estate assets and construction companies.
Healthcare – We value healthcare providers and pharmaceutical companies.
Retail and E-commerce – We value retail and e-commerce businesses with a focus on customer acquisition and retention.
Food and Beverage – We value food and beverage companies with a focus on brand equity and market position.
Our Engagement Process
We follow a structured, collaborative process to deliver high-impact valuation services.
Phase 1: Discovery and Scoping – We understand your business, valuation objectives, and the context of the valuation. We define the scope of work, valuation date, and purpose of the valuation.
Phase 2: Data Collection and Analysis – We collect and analyze financial data, industry information, and market data. We conduct interviews with management and key stakeholders.
Phase 3: Valuation and Modeling – We build financial models and apply appropriate valuation methodologies. We analyze key value drivers and sensitivity factors.
Phase 4: Report Preparation and Delivery – We prepare a comprehensive valuation report that documents our findings, assumptions, and conclusions. We provide post-valuation support to assist you in interpreting and utilizing the valuation results.
Why Choose Qeeva Advisory for Business Valuation
Established Valuation Expertise – Qeeva Advisory provides professional business valuation services to clients who require them during fresh capital injections, investments, divestments, Initial Public Offering, Partner Disputes, and Exiting Stock Market where Minority Shareholders Dissent.
Nigerian Market Understanding – We understand the unique complexities of the Nigerian business environment, from currency volatility to regulatory requirements. Our approach accounts for the “Nigeria Risk Premium” and local market dynamics.
Independent and Objective – We provide independent, objective valuations that are defensible and compliant with professional standards.
Proven Methodologies – We use established valuation methodologies that are internationally recognised and accepted in Nigerian courts and regulatory proceedings.
Experienced Professionals – Our team comprises experienced professionals with deep expertise across valuation, financial analysis, and due diligence. Matthew Ogagavworia, FCA, CFAN, brings over 20 years of experience across banking and finance, capital markets, oil and gas, consulting, and audit. Hector Ekeocha is a project implementation consultant with over 20 years of experience in risk management and financial services.
End-to-End Support – We provide comprehensive services from valuation to transaction advisory to post-transaction support.
Confidentiality and Integrity – We treat your business and financial information with the highest level of confidentiality.
Related Services
Financial Advisory Services – Expert guidance for strategic growth and financial success, including capital raising, M&A, and risk management.
Learn More About Financial Advisory Services
Suggested Reading
A Comprehensive Guide to Valuation for Financial Reporting in Nigeria – Valuation is one of the most critical yet misunderstood areas of financial reporting in Nigeria. Whether you are preparing financial statements for regulatory compliance, seeking investment, or planning a transaction, understanding how to value your business is essential.
Intellectual Capital as a Business Asset in Nigeria – BUA Foods derives nearly 93 per cent of its enterprise value from intangible assets. Nigeria ranks first globally in unicorn valuation. This article explores how to identify, protect, and leverage intellectual capital for business success.
How to Start a Security Guards Services Company in Nigeria – A comprehensive guide to starting a security guard services company in Nigeria, covering licensing requirements, funding, incorporation, legal requirements, and equipment needed.
Common Accounting Errors That Affect Profitability in Nigeria – Accounting errors quietly drain profits, attract penalties, and limit growth. This article walks you through the most common errors affecting Nigerian businesses and how to fix them.
Preparing a Business for External Audits in Nigeria – External audits can be daunting, but with the right preparation, they become an opportunity to demonstrate your business’s financial integrity.
Budgeting Techniques for Sustainable Growth in Nigeria – A well-structured budget is not about restraint. It is about direction, clarity, and control. This article explores budgeting techniques that work in Nigeria.
Frequently Asked Questions (FAQ)
1. What is business valuation?
Business valuation is the process of estimating the economic value of an owner’s interest in a business. It is used for a wide range of purposes, including mergers and acquisitions, capital raising, financial reporting, tax compliance, shareholder disputes, and succession planning.
2. When do I need a business valuation?
You typically need a business valuation when buying or selling a business, raising capital, resolving shareholder disputes, preparing for financial reporting, planning succession, or complying with tax requirements.
3. What are the key valuation methodologies?
The three main approaches are the income approach (e.g., Discounted Cash Flow), the market approach (e.g., comparable company analysis), and the asset-based approach (e.g., adjusted net asset value). The most appropriate method depends on the nature of the business and the purpose of the valuation.
4. What is Purchase Price Allocation (PPA)?
Purchase Price Allocation (PPA) is the process of allocating the purchase price of an acquired business to the fair value of identifiable assets acquired and liabilities assumed. It is required under IFRS 3 for business combinations.
5. What is Financial Due Diligence (FDD)?
Financial Due Diligence is the process of reviewing a company’s financial records and operating data to assess the accuracy of reported financials, sustainability of earnings, cash flow reliability, and identify financial, tax, and operational risks. In Nigeria, FDD is a critical safeguard given the prevalence of informal economies and varying standards of bookkeeping in some sectors.
6. What is the “Nigeria Risk Premium”?
The “Nigeria Risk Premium” is the additional return required by investors to compensate for the risks of investing in Nigeria, including currency volatility, political risk, and economic instability. Valuations in Nigeria must account for this risk when determining appropriate discount rates.
7. Do you serve businesses outside Lagos?
Yes. While our head office is in Ikeja, Lagos, we serve businesses across Nigeria and support cross-border transactions. Our advisory services are available to clients regardless of location.
8. How do I get started?
Contact us to schedule your free consultation. We’ll discuss your valuation needs, assess your situation, and provide recommendations for how we can help.
Contact Us
Understand your business worth, make informed decisions, and unlock value. Let us build a partnership that helps you navigate complex financial decisions with confidence.
Schedule Your Free Consultation to discuss your business valuation needs and explore how we can help.
Phone: +234 802 320 0801, +234 807 576 5799
Email: info@qeeva.com
Address: 5, Ishola Bello Close, Off Iyalla Street, Alausa, Ikeja, Lagos, Nigeria
Business Hours: Monday to Friday, 8:00 AM – 6:00 PM WAT