Whether considering a transaction as part of a restructuring exercise or to accelerate a growth strategy, more and more businesses are turning to PwC for independent valuation advice as they face increased pressure from stakeholders, including shareholders, independent directors and employees, to justify the pricing decisions that underlie their transactions.
Our transaction valuation team uses a range of analytical techniques designed specifically around the value drivers of a particular industry; this gives our clients and their stakeholders a much better understanding of the value creation potential of a transaction.
With the continued growth of cross border transactions, we are able to combine the expertise of our team in Japan with access to PwC's global network of industry and technical specialists to provide you with the best possible analysis of complex cross-border transactions.
Contact us if
How we can support you
Whether you are considering acquiring a controlling stake in a company or exiting an existing business, our valuation analysis can support negotiations and decision making, and provide insights into such important questions as: What is the business worth to you and other stakeholders? What are the critical assumptions underlying the transaction price? Is the business worth more now or can the business be restructured to deliver more value later? How will impending industry and regulatory changes impact the value of the business?
Unlike investment banks that are typically operating on a success basis, we can provide truly independent advice. To provide you with additional comfort when you are negotiating a transaction, we can undertake an independent specialist review of your valuation model or that prepared by another party, such as your lead advisor. This involves critically assessing and challenging valuation methodologies and key valuation assumptions.
Most successful transactions are supported by a high quality model (the “deal model”) that facilitates operational and financial forecasting, value driver and synergy analysis, valuation and related sensitivity and scenario analysis, analysis of deal financing options, and the assessment of the impact of the proposed transaction on the post-deal consolidated financial statements of the group, including accretion / dilution analysis. Applying a mixture of strong analytical skills and technical acumen, we design and build robust financial models to help our clients understand the impact of decisions before they make them and strengthen their competitive position. We do this utilizing our dedicated team of modelling experts.
We provide independent valuation opinions on the fairness of the terms of a proposed transaction, for governance, legal and regulatory purposes.
Our team of dedicated valuation specialists has significant experience in valuing assets and shares for tax purposes. We can provide robust valuations tailored to your requirements that can be used to support the terms of related party and other taxable transactions. Where necessary, we team with tax specialists to optimize the advice that we provide to our clients and reduce the risk of potential challenges by tax authorities.
We also support our clients in the following areas
By integrating PwC valuation specialists into the diligence team, not only can acquirors mitigate the risk of earnings surprises, but the output of a pre-acquisition purchase price allocation can facilitate a more robust transaction valuation analysis and can easily be converted into the post-deal analysis required for financial reporting.
Through detailed analysis of a target’s actual and expected financial performance, we can identify the key value drivers of the business and work with our client to ascertain the potential synergies that might be realized from undertaking a deal, leading to a better understanding of the true value potential of a transaction prior to the submission of a binding offer.
Our valuation specialists understand the impact of control (or lack of control) and marketability on valuations related to: the acquisition of a minority stake in an unlisted company; entering or exiting a joint venture arrangement; or the buy-out of an existing minority interest.
By obtaining a deep understanding of the value proposition of early-stage companies that may not yet have generated revenues, let alone positive cash flows, and which cannot be valued using the valuation metrics typically applied to mature, stable companies, we are able to assess the value of such companies to both owners and potential investors.
Whether in relation to the acquisition or disposal of intellectual property (such as brands, licenses, patents and know-how), or the licensing of intellectual property to another party, we are able to determine the most appropriate methodology to value such assets and execute such valuations. Where necessary, we work with transfer pricing specialists to ensure a consistent approach to the determination of key assumptions in an intellectual property valuation, such as a royalty rate, to reduce the risk of inconsistencies and potential challenges by tax authorities.