Frequently Asked Questions (FAQs)
Answers to the questions founders, CFOs and boards ask us most about business valuations, fractional CFO support, audit readiness and UAE tax.
Business valuations
It depends on the cash flow it can generate, the risk attached to that cash flow, and what similar businesses sell for. We use three standard approaches: income (discounted cash flow), market (comparable companies and transactions) and, where relevant, cost. We then reconcile them into one defensible range. A valuation is always for a purpose and a date, so tell us why you need it and we will set the scope.
The most common triggers are: raising capital, buying or selling a stake, purchase price allocation after an acquisition, annual goodwill impairment testing, employee stock option grants, fund fair value reporting, shareholder disputes and litigation, and restructurings. Auditors, investors and courts give more weight to an independent report than to a management estimate.
That is what we build for. Our reports follow IFRS 13, IFRS 3, IAS 36 and their US GAAP equivalents, and the International Valuation Standards. We agree the method with your audit team early, document every assumption, and answer the auditor's valuation specialists directly. Our team has had reports pass Big 4 and national audit firm review without adjustments.
Most engagements take two to four weeks from receiving complete data. A 409A or ESOP valuation can be faster: our team has delivered one in 12 days. Larger purchase price allocations or portfolio valuations take longer. We give you a firm timeline in the proposal, before any work starts.
Usually three years of financial statements, the current year's management accounts, a business plan or forecast, the cap table, and any recent transactions in the company's shares. For a purchase price allocation, we also need the deal documents. We send a short data request list after the scoping call, so nothing is guesswork.
A 409A valuation sets the fair market value of a private company's common stock under US tax rules. It matters if your company has a US parent (for example, a Delaware holding company) or grants options to US taxpayers. Without one, option holders can face heavy US tax penalties. A 409A is generally relied on for 12 months, or until a material event such as a new funding round.
After an acquisition, IFRS 3 and ASC 805 require the buyer to split the price paid across the assets acquired: tangible assets, intangibles such as customer relationships, technology and brands, and the remaining goodwill. The allocation affects future amortisation and profits, so it is reviewed closely by auditors. It must be finalised within 12 months of the deal.
Under IAS 36 and US GAAP, goodwill is tested at least once a year, and again whenever there is a sign of impairment, such as falling results, a lost major customer or a market downturn. An independent test gives your board and auditor confidence in the carrying value.
Yes. Disputes need a valuation that is independent, clearly reasoned and able to stand up to cross-examination. We set out the methods, the evidence behind every assumption, and how sensitive the result is to each one, so all parties can follow it.
Fractional CFO
A senior finance leader who works with your company part-time, for a set number of days a month. You get CFO-level strategy, reporting, fundraising support and board management, without the cost of a full-time executive. It suits growing companies that need senior judgement before they need a full-time hire.
Common signs: you are preparing to raise capital, your board or investors want better reporting, cash is harder to forecast, you are expanding into a new market, or the founder is spending too much time on finance. A fractional CFO fixes the foundations so a future full-time CFO inherits a working finance function.
An accountant records what happened. A CFO decides what should happen next: building the forecast, setting KPIs, managing cash, preparing investor materials, negotiating with banks and investors, and advising the board. Our fractional CFOs work with your existing accounting team or ours.
Yes. We build the financial model, prepare the data room and investor presentation, defend the valuation, and support due diligence. Our team has worked on capital raises and transactions across the GCC, the US and the UK.
Audit readiness
Getting your books, financial statements and supporting files into the shape your external auditor expects, before the audit starts. We prepare IFRS financial statements, reconcile the accounts, review them the way an auditor would, and fix issues early. The audit itself is carried out by your licensed audit firm; we work on your side to make it fast and clean.
Under current corporate tax rules, audited statements are required for businesses with revenue above AED 50 million and for free zone companies claiming the 0% Qualifying Free Zone Person rate. Many free zone authorities, banks and investors also require an annual audit regardless of size. Check your licence conditions and loan agreements as well.
Yes. We handle the auditor's requests, prepare the schedules, explain judgement areas such as valuations, impairment and revenue recognition, and keep the timeline on track. You spend less management time on the audit, and fewer questions come back late.
UAE corporate tax
Corporate tax is charged on taxable income: accounting profit, adjusted for items the law treats differently, such as non-deductible expenses and exempt income. The first AED 375,000 of taxable income is taxed at 0%, and the rest at 9%. Large multinational groups can be subject to a 15% minimum tax.
Yes. All taxable persons, including free zone companies and companies with low or no profit, must register with the Federal Tax Authority and file an annual return, even if no tax is due. The return and any payment are due within nine months of the end of the financial year.
Free zone companies must register and file. A Qualifying Free Zone Person can pay 0% on qualifying income, such as trade with other free zone businesses or overseas, and 9% on other income. To qualify, the company needs real substance in the free zone, audited financial statements and must stay within the limits on non-qualifying income.
Resident businesses with revenue of AED 3 million or less in the current and all previous tax periods can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2026. They must still register and file. Qualifying Free Zone Persons and members of large multinational groups cannot use it.
A foreign company pays UAE corporate tax on income from a permanent establishment in the UAE, or if it is effectively managed and controlled from the UAE. Some UAE-sourced income of foreign companies can also be in scope. The rules depend on the facts, so get advice before you start trading here.
VAT
Registration is mandatory when taxable supplies and imports exceed AED 375,000 in the past 12 months, or are expected to in the next 30 days. Voluntary registration is possible from AED 187,500. The standard rate is 5%, and returns are usually filed quarterly.
Working with iConsult
Senior people. Our valuation work is led by a CFA charterholder with eight years at EY in Dubai and New York, supported by a team with Big 4 experience. Our firm draws on a Dubai practice built since 1975.
Yes. Our team has valued businesses and advised clients across the UAE, Saudi Arabia and the wider GCC, the US, the UK and Turkey, under both IFRS and US GAAP.
Book a free 30-minute consultation. We will understand what you need, agree the scope and timeline, and send a clear proposal. There is no obligation.