Valuation for Banks
Saffron Multicon provides specialized valuation services, including assessments for banks, lenders, and financial institutions. These services include the valuation of immovable property, plant and machinery, and vehicles under SARFAESI, as well as valuations required for restructuring proposals, arbitration, litigation matters, and securities pledged to banks. The company focuses on using the Residual Income model for valuing financial services firms, as traditional discounted cash flow methods often fail for such companies. This model helps assess the long-term economic value added by firms based on their return on equity (RoE) and cost of equity (CoE). Saffron Multicon’s approach emphasizes understanding the longevity of excess returns, which is key to valuing financial institutions accurately. Despite challenges like high reinvestment needs and non-traditional working capital, Saffron Multicon remains confident in the strength of financial services businesses and their ability to generate long-term compounding returns.
key Points
- Valuation services for banks and financial institutions.
- Includes immovable property, machinery, vehicles, and shares.
- Residual Income model used for valuing financial services.
- Focus on return on equity (RoE) and cost of equity (CoE).
- Emphasis on the longevity of excess returns.
- Accurate valuation for restructuring proposals and arbitration cases.
- Strong corporate governance and prudent capital allocation.
- Expertise in valuing pledged securities and assets for OTS proposals.
- Comprehensive understanding of non-financial firms' valuation methods.
- Confidence in long-term growth of financial service firms.
