Executive Summary
This guide provides a practical overview of the business valuation process in Malaysia for business owners. We explain the different valuation methods and the key factors that influence a company's worth, so you can make informed decisions about the future of your business.
Why Value Your Business?
There are many reasons why you might need to value your business, including:
- Mergers and Acquisitions (M&A): To determine the purchase or sale price of a business.
- Fundraising: To justify the valuation of your business to potential investors.
- Shareholder Disputes: To resolve disputes between shareholders.
- Succession Planning: To plan for the transfer of ownership of your business.
Common Business Valuation Methods in Malaysia
There are three main approaches to valuing a business in Malaysia:
- Income Approach: This approach values a business based on its future earning capacity. The most common method is the Discounted Cash Flow (DCF) method.
- Market Approach: This approach values a business by comparing it to similar businesses that have been sold or are publicly traded.
- Asset-Based Approach: This approach values a business based on the net value of its assets.
The most appropriate valuation method will depend on the specific circumstances of your business.
Key Factors Influencing Business Value
In addition to the valuation method used, there are a number of other factors that can influence the value of your business, including:
- Your company's financial performance
- The industry in which you operate
- The strength of your management team
- Your company's competitive position
Related Services
Our Corporate Finance & Transactions team can provide you with an independent and professional valuation of your business.
Last updated: 15 October 2025