Our team works to provide assistance with:
- Forecast of financial effects in case of business restructuring;
- Asset value determination in case of business restructuring or price allocation in case of acquisition;
- Analyzing overheads and profits;
- Analyzing past operational performances and forecast future financial results;
- Calculation of discount rates and multiples;
- Testing the accuracy and sensitivity of business models.
Business valuation
Business value is an objective factor showing business performance. The management goal is to maximize business value. It is strategically important for the survival and prosperity of any business to have a clear model for its value formation.
Formation of this model requires excellent knowledge and understanding of approaches and techniques. Valuation of companies is a complex, dynamic and multivariable task. To fulfill this task, you need a clear understanding of the macroeconomic and sectoral aspects, knowledge of financial, legal, accounting, taxation and other issues, details, technological trends etc. In fact, the term ‘business valuation’ means one of the following tasks:
- Valuation of a majority (controlling, blocking) interest of the company;
- Valuation of a minority interest;
- Valuation of a property complex;
- Valuation of company shares listed on the market.
Valuation means value estimation of all assets and liabilities of the company: real estate, machinery and equipment, inventory, financial investments receivable, intangible assets, loans. Besides, the effectiveness of the company, its past, present and future profit, development prospects and competitive environment in the market are evaluated and then the concerned company is compared to similar businesses. Business value is determined based on this comprehensive analysis.
Our team has a unique experience in the formation of models for determination of the business value in the following areas:
- Oil and Gas Sector
- Metallurgy
- Energy Industry
- Machinery
- Pharmaceuticals Industry
- Development
- Telecom and IT sector
- Extractive Industries
- Chemical and petrochemical sector
Assets valuation
Using IFRS significantly increases the information value of the financial statements of an enterprise, promotes deep analysis of its activities, easy access to international capital markets and contributes to the successful establishment of contacts with foreign partners.
One of the most important stages of the transition to IFRS is measurement of the elements in the financial statements at their fair value.
Valuation objectives
- Valuation for the purposes of IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’;
- Valuation for the purposes of IFRS 3 ‘Business Combinations’;
- Valuation for the purposes of IAS 36 ‘Impairment of Assets’;
- Valuation for the purposes of IAS 16 ‘Property, Plant and Equipment’;
- Valuation for the purposes of IAS 38 ‘Intangible Assets’;
- Valuation for the purposes of IAS 39 ‘Financial Instruments’;
- Valuation for the purposes of IAS 40 ‘Investment Property’.
Real estate valuation
Real estate valuation is a process of determining the value of a real estate item or individual rights relating to a real estate item being valued.
Real estate valuation includes determining the value of property rights or other rights e.g. lease rights, the right of use etc. in respect of various real estate items.
- Valuation of residential property
- Valuation of plots of land
- Valuation of commercial real estate
- Valuation of rent
Intangible assets valuation
Intangible assets are non-monetary assets without physical substance. They are included in non-current assets.
The following objects could be considered intangible assets:
- intellectual property assets (exclusive rights to intellectual activity results)
- exclusive right of the patent holder to invention, industrial design, utility model
- exclusive copyright to computer programs, databases,
- property right of the author or copyright holder to integrated circuit topographies
- exclusive right of the owner to trademark and service mark, appellation of origin of goods
- exclusive right of the patent holder to selection achievements
- goodwill.
Valuation of intangible assets is important for large enterprises, when it is their cost that makes a significant contribution to the overall capitalization of the company and allows consolidating the position of the company in the market.
Our company has successfully established itself in the market of such services and offers our partners a quality approach to determining the value of intangible assets.
Machinery and equipment valuation
Most businesses have equipment in the books. In practice, the needs for valuation concern a wide range of equipments: from the office computers to the production lines, machines, vehicles.
Equipment valuation is the most diverse form of valuation practice, as it has a significant number of varied, highly specialized and often unique items subject to valuation.
Equipment valuation is mostly demanded in the following cases:
- Valuation for the IFRS purposes;
- Valuation and selection of optimal pledges in lending;
- Valuation when negotiating amounts of statutory contributions to the registered capital;
- Valuation and counseling in debts recovery;
- Valuation and counseling for tax optimization.
Many years of experience in equipment valuation and expertise of the Marillion valuators ensure accuracy, timeliness and objectiveness of the valuation activities of any complexity level.
