Valuation Services | Vision Consulting

Valuation of the Company – the valuation of a business entity, majority or minority interest

Analysis of the market value of Your Company shall present the value of Your business with all engaged assets and resources at the specific date, taking into consideration the actual market position, potential growth and development, and future plans.

Business valuation or stake valuation, majority or minority interest, may be needed for different purposes, such as:

when you are considering or planning to start negotiations with potential partners and investors

to get the realistic basis for strategic planning, choosing growth and development direction, entering new markets, launching new products...

to have a reliable documents for privatisation process in line with the Law on Privatization

to prepare and implement acquisition, when you are selling or purchasing a company

for fairness opinion on the completed transactions

for valuing minority interest or individual shares in a case of disagreement and payments to shareholders

to implement the statutory changes (acquisition, merger, divorse, separation)

to determine the share ratio related to the statutory changes

for the purposes of increasing the equity, debt conversion to the equity and defining new ownership structure

for the preparation of independent opinion on the valuation conducted by another appraiser

for preparing Pre-pack Reorganization Plan (UPPR)

for initial public offer at the stock exchange market and estimate the initial market value of share

Valuation for financial reporting and tax purposes

If your goal is to have a credible and objective financial statements, prepared in accordance with the International Financial Reporting Standards (IFRS) - the valuation of the fair value of your assets and liabilities, as well as fair value of shares e.g. investments in the related parties are essential parts of your accounting policy.

It is very important to recognize potential effects on the result at the most earliest stage and therefore you should appoint the accredited, certified appraiser, who will conduct all necessary analysis, such as:

valuation of the fair value of assets in accordance with

IFRS 13 – Fair Value Measurement
IAS 16 – Property, plant and Equipment
IAS 40 – Investment Property
IAS 38 – Intangible Assets.

Impairment test of property, machinery and equipment, Goodwill and other intangible assets, in accordance with:

IAS 36 – Impairment of Assets

Purchase price allocation i.e. valuation of the fair value of assets and liabilities after the acquisition is completed, including identification and valuation of the intangible assets, in accordance with:

IFRS 3 – Business Combinations

Valuation of the fair value of stakes and shares in the related parties, in accordance with:

IFRS 13 – Fair Value Measurement

An integral part of managing company successfully is not only enhancing profitability and business results, but also optimisation of tax effects based on the estimated market value of equity and assets,, prepared by an independent appraiser, where the valuation can assist you in planning and implementing organizational and statutory changes, if you obtain on time the following:

The valuation of business or (non)-controlling interest:

for transfer of stake from one legal entity to another, i.e. the change in ownership structure between related parties,
for registration of equity and stake in the country or abroad,
in a case that one of partner is leaving the company
for preparation and implementation of statutory changes such as acquisition, merger, divorce and separation
for review of financial and tax effects on possible transactions,
to consider the financial and tax effects of potential transactions
in a case of debt conversion to equity and defining the new ownership structure.

Tangible and intangible asset valuation:

To calculate the tax effects of transferring assets between related parties
For acquired second-hand equipment from related parties in the country and abroad
To analyse the property market rents for the purposes of study on transfer prices
To estimate the real costs invested in the intangible assets (software, patent, trademark, design, brend, know-how, etc).

Valuation for financial reporting and tax purposes

Property of Your company may have a big potential for growth and development, but it can also be a dead equity that is burdening the company with taxes, maintenance and liabilities it generates.

The property, machinery and equipment valuation is usually prepared for financial reporting and tax purposes, or securing a mortgage loan. However, during the Company’s growth and development, it often happens that management does not pay enough attention to the appropriate use, profitability, long-term feasibility, etc. Did you ever wonder what would be the best way to utilise existing property and equipment:

is it more feasible to use the property, to sell it or lease it?
what are the possible alternative uses for the existing location?
in case of property transactions between related partners within a Group, you will need the real, market valuation for tax purposes and preparation of study on transfer prices
if you are considering to purchase a property today, did you analyse its short-term and long-term expenditure, and compare it with various benefits you expect?
would it be more beneficial for your business to record the property at the purchase price or fair value?
if you plan to register non-cash contribution of kind, what is the market value of this asset?
if you plan to transfer property from one legal entity to another, find out what are the overall effects of these changes
if you are interested in measuring profitability of your property, i .e. how much the engaged assets are contributing to your business , and what would be the alternative use and effects

Intangible assets valuation (brand, patent, licence, trade mark, software, client database...)

As the business grows its products and services, market position and reputation, Company builds its image, brand, software, patents, databases… each with its own market value.. Intangible assets valuation is what you need if:

you would like to know the value of your brand (trade mark)?
you are interested in how much each brand contributes to the value of Your Company, how can you increase its value, for how long it will be profitable and what are the key factors that influence its sustainability and profitability?
you have the registered patent and want to sell it, mortgage or lease it as a licence? you want to compare several options and choose the best possible solution?
you have internally developed software and you want to know its value? What would be the possible selling or rental price? Whether the purchase of new software will be more feasible?
you plan to purchase an existing database of clients and want to understand its market value?
you intend to register the intangible assets as a contribution of kind, that requires the market market valuation
you wish to compare and review differences between the sale/purchase option vs. licensing intangible assets?