Valuation

Financial reporting • M&A • Disputes

Your Challenges

Value is high on every corporate agenda. It could exist in tangible and intangible assets of a business, an investment, or an intellectual property.

In a dynamic global economy, it is critical that a business has comprehensive knowledge of its value so as to capitalise on any value-creating or enhancing opportunities. Value is also a critical component for decisions in transactions involving M&As, dispute resolutions, tax structuring, corporate restructuring, and accounting and financial reporting.

Valuation can be controversial and subjective so an independent and robust opinion which will stand up to scrutiny is necessary. Additionally, changes within the global business environment in recent years have necessitated the use of professional valuation expertise.





Meeting Your Needs

Whether a situation or transaction is straightforward or highly complex, the involvement of professional valuation experts is often crucial to its success. PwC’s Valuation Advisory Services practice can assist in formulating a robust and defensible valuation that makes both commercial sense and stands up to scrutiny.

Mergers & Acquisitions

Valuing all or part of a business requires input from a variety of specialist advisors. Not only is it necessary to understand the value drivers relevant to a particular industry sector, it is also critical to take into account the broader strategic aims of the business. PwC works closely with our in-house industry and strategy specialists who provide insights on industry and strategy issues. This enables us to conduct valuation from a commercial perspective rather than just perform an academic exercise. We provide the following services:
  • Fairness Opinion/Independent value analysis on your target or investee companies
  • Valuation of unquoted companies/financial instruments.

Financial Reporting

Considerable changes in Financial Reporting Standards call for specialist valuation services that both understand the specific accounting implications and the wider commercial context in which those accounting valuations apply. PwC draws on world-class valuation and accounting specialists, as well as our in-house industry groups to deliver the following integrated advice to our clients:
  • Purchase Price Allocation
  • Asset/Goodwill impairment
  • Valuation of financial assets & liabilities
  • Valuation of share-based payments

Dispute, Arbitration, Litigation

In the event of a dispute, an independent valuation may help resolve issues swiftly. PwC provides credible and defensible expert valuation opinion and reports to support our clients’ viewpoints and positions in disputes, arbitration and litigation proceedings. We also provide expert witness and valuation for litigation support.

Taxation

Your business may consider tax planning/structuring from time to time and may require valuation analysis for submission to the Inland Revenue Authority. PwC can help you prepare a defensible and commercially practical valuation analysis to support your tax submission requirements. We also assist with intellectual property valuation for tax incentive purposes.



Our Experience

Leading Provider of Integrated Transport and Logistics Services
- Purchase Price Allocation for Client Acquisition

Our client was one of Asia’s leading providers of integrated transport and logistics services. It recently acquired a leading integrated logistics company in the Asia Pacific region as part of its vision to provide total logistics solutions to the Asia Pacific region. In accordance with local accounting standards, the client was required to allocate the total purchase price to all of the assets and liabilities acquired, including intangible assets. PwC was engaged to perform a Purchase Price Allocation exercise for the acquisition.

PwC delivered a full suite of services required under the accounting standards, including:
  • Identification and valuation of intangible assets, for example, brand name, customer relationships, contracts and intellectual property, and contingent liabilities
  • Fair valuation of material balance sheet items
  • Estimation of deferred tax and remaining goodwill
Our core service team, comprising valuation, accounting and tax specialists, assisted our client in understanding and addressing any related accounting and tax implications. This enabled us to deliver an integrated financial reporting solution to our client.