Valuation Services
Issues and challenges
The business and financial environments are both dynamic and unpredictable making
valuations all the more challenging.
Establishing a proper value for any business or company requires in-depth specialised
knowledge and experience across various disciplines, including accounting principles,
legal principles and investment markets. Numbers and figures in balance sheets and
operating statements are not adequate enough, simply by themselves, to properly reflect
and measure the true value of an entity.
We provide clients with an objective and defensible opinion of the value of their
organisation. Our valuations combine expertise with leading valuation and corporate
finance knowledge.
The valuation process
Our approach to all valuations will depend on a number of factors which are determined
after all facts have been analysed and considered.
The process adopted in the valuation of each individual entity includes:
■ Obtaining an understanding of the business activities undertaken by the entity
■ Consideration of the generally accepted valuation principles
■ Understanding of the different valuation techniques
■ Consideration of the standards of valuation applicable to the entity being valued
The procedural approaches to the valuation process include:
i) Introductory phase:
■ Initial contact – it is generally necessary to meet with our clients to discuss the
engagement and any concerns they may have. This also assists in building rapport
and trust as our clients develop an understanding of the process.
ii) Analytical Phase:
■ Preliminary analysis – following receipt of the information required, the preliminary
work such as financial analyses, analytical review and industry review commences.
■ On site visit – it is essential to undertake an on site visit to develop an understanding of
the business and its operational processes. The major objectives of the site visit are:
■ Review the physical business operations with representatives of management
■ Review any corporate documents not previously provided
■ Resolve any queries arising from preliminary financial analysis
■ Normalisation adjustments – consideration for any adjustments which may be
required for abnormal, non recurring or non arm’s length transactions.
■ Consideration of an appropriate method of valuation – there are many acceptable
ways to value particular assets. It is very important that the one adopted be the
most appropriate in the circumstances and for the given purpose.
■ Valuation conference – once the financial and / or fiscal analyses have been completed
a meeting will be held with the relevant parties to discuss the facts adopted and
assumptions made in the valuation process to ensure their correctness.
iii) Reporting Phase:
■ Issue of the final report.
Liability Limited by a scheme approved under Professional Standards Legislation
