FAS Valuation Modelling


Valuation & Modelling

How much is it really worth?

Valuation is a complex and sometimes controversial subject. It requires in-depth understanding of the economic, industry trends, the asset and its competitors, together with financial and non-financial information, as well as factors such as the legal and regulatory environment. Effective valuation advice combines the right blend of analysis, experience and professional judgment.

How can we help?

Our valuation & modelling specialists are part of a global network of practitioners with access to experience and market information around the world and offer advice to both public and private companies.

Deloitte is a certified business appraiser in Lithuania with a solid track record in business valuation, purchase price allocation, modelling and litigation.

Our services include:

• M&A and investment analysis;

• Business Modelling;

• Litigation, Arbitration, Expert Determination and Disputes;

• Restructuring, Reorganization, Turnaround and Recapitalization;

• Purchase price allocation (PPA);

• Public Private Partnerships (PPP).


Valuation Modelling

M&A and investment analysis

We provide complex valuation services throughout the whole transaction cycle from preliminary analysis, transactional valuation and purchase price allocation. Our team of seasoned professionals with strong industry knowledge provide answers to key questions present in a transaction including:

• What are my strategic options for the business: how much is the business worth to me now? How much could it be worth to me?;

• What are the available exit routes and how much could the business be worth to potential acquirers?;

• What maximum price can I pay and ensure fair return from a deal?;

• Are the financial terms of a transaction fair for me or my shareholders?;

• What is my investment portfolio worth?;

• What is the value of the companies in my fund?;

• What is the company share worth in a squeeze out?

Our team assists management and stakeholders in transactions, strategic reviews and investment appraisals.

Business Modelling

We have a long track record of providing specialist modelling services in the most challenging situations. We can help generate confidence and enable better decisions through the development of bespoke forecasting models and analyses.

We work closely with our clients, providing support to a broad range of business-critical decisions, covering financing and refinancing, cost reduction, major capital programmes, and transformational projects and transactions. We bring a realistic, commercial perspective to our work, often playing a core role within a larger team.

Litigation, Arbitration, Expert Determination and Disputes

In a dispute or litigation, either ongoing or contemplated, highly skilled valuation specialist knowledge is required to assess among others:

• How much has the value of a business, or asset, been affected by a breach of contract, breach of warranty or infringement of a patent or the rights attaching to shares or an asset?;

• Has a loss of value been suffered due to the professional negligence of an advisor?;

• How much is a minority interest/shareholding in a private unquoted business worth?

We often act as:

• An expert witness in either litigation or arbitration proceedings;

• An independent expert appointed to determine a value;

• An advisor to one of the parties in a litigation, arbitration or expert determination.

We work closely with Deloitte industry and technical specialists, including our Forensic & Dispute Services group, to deliver solutions tailored to the specific circumstances of the matter.

Restructuring, Reorganization, Turnaround and Recapitalization

Whether due to internal or external reasons you are contemplating financial or organisation restructuring, expert valuation expertise is necessary to evaluate:

• What is the value of security held over the business, assets or shares of an entity?;

• Is the value of the business greater than the amount of outstanding debt and, if not, where does the value of the business sit relative to the debt structure?;

• What are the value implications of different reorganisation or insolvency options?

We work closely with other Deloitte FA specialists to advice management, shareholders, debt providers and other creditors of businesses undergoing restructuring in respect of security valuation and value realization strategies.

Purchase Price Allocation (PPA)

IFRS and local accounting regulations require preparers of financial statements to report fair values of assets acquired in business combinations. As seasoned valuation expert with strong knowledge of accounting standards we help our clients to assess:

• How should the purchase price of an acquired business be allocated amongst the tangible and intangible assets and liabilities acquired?;

• What are the likely capital gains of a proposed transaction?;

• What is the impact of International Financial Reporting Standards (IFRS) on my balance sheet and profits?;

• Are the balance sheet values of my investments and intangible assets (including goodwill) impaired and, if so, by how much?;

• Under which conditions, my assets may be impaired?

We work closely with valuation, accounting and tax professionals from Deloitte’s global network to provide comprehensive and up-to-date advice on these complex and changing issues.

Public Private Partnerships (PPP)

Public services have traditionally been delivered through hierarchical government bureaucracies. But these days, when vertically integrated model is giving way to a horizontal approach involving a complex blend of state and local government – along with private businesses, third-party contractors and non-profit institutions, the role of government is transformed from direct service provider to leader and manager.

We provide services in all stages of the PPPs process including:

• Undertaking feasibility studies;

• Business case development;

• Managing the bidding process (including the drafting of all procurement documentation);

• Development of innovative performance management systems;

• Tender evaluation;

• Contract negotiation;

• Model review and analysis.