Valuations of business for transaction purposes
We support companies with the valuation of potential acquisition targets and with simple business valuation models to assist you with the financial analysis and decision making related to a transaction. Where you need a complete model built-up tailored to your needs, or a review of your existing valuation models we have the expertise to make a meaningful contribution to your organization.
Case study: Independent valuation of the intermediary and authorized agent portfolios (insurance) as part of its potential acquisition by a leading road assistance company.
Valuations of legal entities for tax purposes
Valuations of legal entities can have significant implication on a company’s tax position. Our professionals have extensive experience in the field of valuations for tax purposes and can assist you with the estimation of the appropriate defendable valuation to present to the tax authorities. We take full responsibility of our valuation and defend our approaches and assumptions as part of our services. Reconciliation of the sum-of-the-parts, triangulation of values (market, income, cost approach) and benchmarking with analyst recommendations are standard components of our analysis.
Case study: Valuation of the entire share capital of the German division of a leading US financial services holding company, and reconciliations across various valuation methodologies.
Valuation of intangible assets (purchase price allocations)
We have extensive experience with purchase price allocations across industries and we have assessed the valuation and remaining useful lives of the intangible assets of numerous target companies under IFRS, and US GAAP. Our expertise covers valuations of brand names, technology, customer relationships, onerous / favourable contracts, technology, software, concessions, non-compete agreements among others. We have valued intangible assets for financial reporting purposes, tax planning purposes, merger and acquisition purposes and transfer pricing purposes.
Case study: Independent valuation of the intangible assets of various financial services companies within a pre-transaction purchase price allocation context.
Valuations of intellectual property
Whether triggered for tax compliance, strategic or litigation purposes, companies may need to know what the value of their intellectual property is. We provide assessments of the fair value of intellectual property (patents, technology), and their associated remaining useful lives. Our approach is consistent with OECD guidelines and generally accepted accounting standards.
Valuation reviews of private equity portfolios
Our experts have in-depth expertise with valuations of private equity portfolios and valuation reviews to ensure objective valuation advice is delivered to limited partners, investors, external auditors, or the regulator. We have experience on advising leading private equity companies with their valuation policies in accordance with the applicable valuation standards, and have supported private equity portfolios with the estimation of fair values for their illiquid investments. We are able to deliver full scope valuation services and support the valuations to your investors and auditors. Our valuation services are delivered across all phases of the investment cycle, from the formation, to the holding of the investment, to the sale of the investments and winding down of the fund.
Valuations of illiquid investments to hedge funds and alternative asset managers
We support hedge funds and alternative asset managers with the valuation of illiquid investments. We have in-depth expertise with the application of sound valuation methodologies and necessary value adjustments (discounts / premia) and have assisted a wide range of alternative asset managers to establish fair value policies and procedures.
Case study: Independent review of the valuations of alternative investments with no “active market” quotations available and independent assessment of the Fund’s valuation policy and procedures as well as assistance with establishing valuation cross checks.
Financial benchmarking analysis
Whether it is at times that Management assesses how much to pay for a target, or when it measures fair value for financial reporting purposes, or when it prepares its long range business plans, financial benchmarking provides a degree of comfort to Management and Supervisory board. We have the right expertise to perform financial benchmarking for your own needs, and support you with valuations that are based on industry benchmarks.
Valuations for litigation and dispute purposes
Whether you are facing a costly litigation or are pursuing a large litigation claim against a third party we have the expertise to support you with the assessment of the potential damages.
Valuations of bank loan portfolios, estimation of profit generation capacity and capital requirements
We can assist banks with the valuation of loan portfolios, the estimation of profit generation capacity of the loan portfolio, and potential capital requirements / releases for the foreseeable future, taking into account appropriate valuation parameters, e.g. loss given defaults, probability of default, credit risk per risk category, etc.
Case study: Profit & loss solvability analyses under base and stress case scenarios defined by a central bank, estimated expected losses, quantified impact on regulatory capital as well as the fair value of the loan book (AQR -asset quality review scope)
Estimation of cost of capital
At the heart of every valuation is the derivation of an appropriate discount rate. We have indepth expertise with the estimation of cost of capital, across subsidiaries and business lines. Our sound methodologies and assumptions have been reviewed and accepted by the ‘big 4’.
Case study: Assisted with the development of a consistent framework to derive the discount rates of the cash generating units of a leading listed international retailer used for impairment testing and for appraisals of new investment initiatives.
Valuations for impairment testing purposes
Companies have to test for impairment the carrying amounts of goodwill and indefinite lived intangible assets. Our professionals have extensive experience in this field, either by performing the impairment test directly or by reviewing the impairment tests prepared by companies.
Valuations of derivatives
Whether it concerns the option to convert, a put/call option included as part of the price consideration, employee stock option plans, warrants, we can assist you with the selection of appropriate valuation methodology and the estimation of the necessary valuation parameters.