Business Valuation is a technique of measuring the fair value of an interest in existing company or business, expressed in monetary terms at a particular point of time. Fair value is the value of an asset or liability in an arm’s length transaction between unrelated willing and knowledgeable parties.
Companies are asking for conducting a business valuation for many reasons such as:
Mergers and Acquisitions (M&A)
- Acquiring an asset or shares of a potential target
- Merging with another entity
- Developing Purchase Price Allocation (PPA) for new acquired assets in compliance with IFRS 3 – Business Combination, IFRS 13 – Fair Value Measurements
- Introducing a new shareholder/partner into a company
- Initial Public Offerings (IPO)
- Disposal of an equity stake in a company
- Debt financing
Assets Impairment Testing
Conducted on an annual basis for assets which are subject to IAS 36 – Impairment of Assets such as:
- Machinery and equipment
- Investment property carried at cost
- Intangible assets
- Investments in subsidiaries, associates, and joint ventures carried at cost
- Assets carried at revalued amounts under IAS 16 and IAS 38
Financial Instruments Impairment Testing
Conducted on an annual basis for assets, which are subject to IAS 39 such as:
- Financial assets at fair value through profit or loss
- Available-for-sale financial assets.
There is a wide range of valuation techniques in Business Valuation. They may be asset based, income based or market based. However, the most critical decisions involve the selection of the most appropriate valuation techniques for a given situation and ensuring their precise application.
We at Baker Tilly are experts in dealing with such decisions and we ensure that “Value Is Inherent and Not Artificially Created.”
Added value to business entities from Business Valuation Services
- Know the true value of company or business, and hence assist business entities with making critical strategic and financial decisions;
- Identify and access to more investors; and
- Observe transparency, industry trends, legal implications, market data and latest research in conducting the business valuations.
Services provided by Baker Tilly
Conduct business valuations
Baker Tilly has advanced industry experience in Business Valuation gathered over years of practice in this arena. Its experts have been involved in complex valuation transactions in both the public and the private sectors. We have track record and numerous recognitions and awards in this field speak for themselves.
Other related services
- Feasibility Study
- Strategy & Business Plan
- Mergers & Acquisitions
- Impairment Test
- Purchase Price Allocation
- Private Placement Memorandum
- Initial Public Offering
- Corporate Restructuring
- PPP Transaction Advisory