Company and asset valuation

In an increasingly complex business environment, the valuation issues surrounding mergers and acquisitions, financial reporting (IFRS for example), restructuring, tax planning and disputes have become more difficult to manage than ever.

The need for transparent and robust valuation processes to support corporate transactions and to meet regulatory and accounting requirements (including the effect of the adoption of the Alternative Investment Fund Managers (AIFM) Directive) has increased.

As financial reporting has shifted to a fair value model, it has triggered increasing regulatory scrutiny and has led to the emergence of new risks which the fund managers, investors and services providers are exposed to.

Among others, the complexity of the valuation of unquoted and illiquid investments and the extent of professional judgment it involves appears to remain a major challenge for the private equity industry.

Your challenges

As a company manager or administrative and financial  officer, you are obliged by law, regulations or contractual obligations, or you would like to:

  • Obtain support for the fair value measurement of a company or of an asset in connection with transactions requiring the engagement of a certified auditor or accountant (contributions in kind, merger, split, transfer of head office, change of a company's legal form, etc.)
  • Obtain support for a purchase price allocation
  • Obtain support for the fair value measurement of securities or other assets in connection with a business or asset acquisition/ divestment/ transfer
  • Obtain support for impairment testing
  • Determine your financing needs in the context of investment projects
  • Have your investment strategies evaluated
  • Engage an expert in connection with the acquisition or divestment of intangible assets (goodwill, trademarks, patents)
  • Secure advice on the choice of valuation methods
  • Provide a fairness opinion within the framework of a squeeze-out
  • Obtain assistance in connection with a dispute between shareholders

Meeting your needs

Given the difficulty of valuing illiquid financial instruments and the potential for conflict of interest, private equity firms can rely on Acertis for independent third-party valuation services.

Acertis valuation services can help clients in enhancing their credibility and transparency while reporting to investors.

Acertis has developed a range of specific services to support you in all your company and asset valuation activities.

These services include:

  • Asset valuation
  • Business valuation
  • Valuation of financial instruments
  • Second opinions/ Fairness opinions
  • Purchase price allocation
  • Transactions with minority interests
  • Damage claims
  • Stock option plans/ other incentive schemes
  • Valuation for tax purposes
  • Valuation of brands, patents and other intangibles
  • Impairment testing (IAS 36)
  • Hedge accounting (IAS 39)
  • Contributions in kind/ conversions
  • Valuations in connection with mergers & acquisitions
  • Assistance in drafting term sheets
  • Support to AIFM
  • Economic capital and risk allocation
  • Calculation, standardisation and optimisation of fund risk
  • Construction and methodology of new fund investment products
  • Design of a risk procedures manual

Measuring the value of a company or of an asset requires know-how in valuation techniques, which Acertis professionals, having gained significant experience from valuation and transaction advisory assignments place at your service. The nature and extent of their services take account of the profile of the client company and the context and specific nature of requests.