Transactions such as mergers, acquisitions and divestures are important means of inorganic growth for many companies. At the outset, transactions promise significant value creation and cost-saving benefits. However, mergers, acquisitions and divestures present their own challenges. PricewaterhouseCoopers Valuation and Strategy practice can support your organisation’s transaction strategy by deepening your team’s understanding of the potential value of the deal. Our unique approach integrates a series of analysis to address specific issues. In particular, we would analyse future financial performance and implied value ranges, evaluate key risks and uncertainties on different outcomes, investigate impact of different input assumptions and future scenarios and leverage knowledge of recent transactions. A robust financial and strategic analysis is essential to avoid significant opportunity and financial costs of an inappropriate transaction. Such analysis facilitates decision-making, enhances the quality of decisions and enables management to proceed with greater confidence and insight.
IAS and IFRS introduce significant changes to the way that accounts must be prepared and presented, requiring a wider range of assets to be valued on an annual basis. These considerable changes call for specialist valuation services that both understand the specific accounting implications and the wider commercial context in which those accounting valuations will apply. PwC’s valuation services draw on considerable technical and financial specialisation, as well being able to access accounting specialists to deliver integrated advice to our clients.
Valuations often lie at the heart of disputes and negotiations with tax authorities. The specific demands of the tax authorities demands specialist advice and detailed knowledge of their working methods and practices. To maximise the possible tax benefits from a transaction, the tax aspects need to be integrated at the time that the transaction is being structured. In the event of a dispute with the tax authorities based on valuation, the appropriate documentation processes are essential for a swift and successful resolution. Our teams of dedicated specialists understand the demands of the tax authorities and are able to provide expert knowledge of the latest valuation techniques combined with clearly documented advice. In addition, we produce detailed and comprehensive documents capable of being submitted to the relevant fiscal authority.
Independent expert opinions
There are a wide range of circumstances in which an independent opinion of value is required, and each different scenario requires specialist knowledge and the application of specific skills. Courts, regulators, tax authorities, shareholders and businesses will, at different times, all need an objective specialist to provide a valuation of an asset or business. PwC’s services provide the appropriate level of independence in all circumstances. We are appointed by the courts and the regulatory authorities to provide independent, expert opinions relating to value. We draw on considerable economic and commercial specialisation to ensure that our opinions are delivered to the most robust standards of objectivity and independence. Similarly, non-executive directors and audit committees bear a significant responsibility for corporate governance. This responsibility extends to ensuring that assets are appropriately valued and that the accounts reflect the underlying reality of the business. We are able to assist non-executives directors and audit committees to address their governance obligations by providing independent support of the valuations inherent in their verification of accounts and reports.