Services

Valuation Services

Our valuation practitioners can perform valuations of business interests, tangible assets, intellectual property, intangible assets, common and preferred stock and other securities, partnership interests, employee stock option plans (ESOPs), private debt instruments, options, warrants, and other derivative products. These services are provided to assist clients with mergers, acquisitions and dispositions; taxation planning and compliance; financial reporting; bankruptcy and reorganization; litigation and dispute resolution; and strategic planning.

Valuation Services include:

  • Business Valuation 
    ○ Valuation of business interests
    ○ Tangible Assets Valuation
    ○ Intangible assets valuation, including purchase price allocation
    ○ Fairness opinions
    ○ Impairment Test
    ○ Share-based Payment Valuation
  • Valuation Advisory Services
    ○ Fair value measurements in financial reporting
    ○ Transaction Advisory
    ○ Fund portfolio valuation
    ○ Model design and risk assessment for financial instruments
  • Infrastructure  / Project Finance Advisory
    ○ Project Finance Advisory
    ○ Debt Finance Advisory
    ○ Project bidding advisory
    ○ Project feasibility study
    ○ Project Transaction advisory
    ○ Financial modeling

Business Valuation

Valuation of Business Interests

Business valuation includes the provision of either valuation opinion or valuation consulting services for the valuation of aggregate business interests or business enterprises.

Such analyses are performed for:

  • Transaction planning
  • Purchase or sale of business 
  • General business purposes
  • Financial statement or tax reporting purposes 
  • Collateral or secured financings or refinancing
  • Litigation or dispute resolution purposes

Typical illustrations include:

  • Valuation or appraisals of businesses, business ownership interests, securities, and partnership and limited liability company interests in private, publicly held, or government entities
  • Valuations or appraisal estimates or analyses involving estimates of fair value of aggregate business enterprises in connection with an entity’s financial statements pursuant to pronouncements issued by regulatory authorities, or financial or accounting standards-setting bodies.

Intangible Asset Valuation

Intangible asset valuations include the provision of either valuation opinion or valuation consulting services for individual or multiple intangible assets or liabilities and intellectual property where the result are used for:

  • Financial statement or tax reporting purposes
  • General business purposes 
  • Transaction planning
  • Purchase or sale of assets
  • Licensing or relicensing
  • Collateral or secured financings or refinancing
  • Litigation or dispute resolution purposes

Typical illusion include:

  • Valuations in connection with an entity’s financial reporting requirement in the contest of business combinations or in connection with the external audit of fair value measurements.
  • Valuations of and/or estimates of remaining useful life of individual intangible or intellectual assets.

Fairness Opinions

Fairness opinions involve the provision of a report, generally to a Board of Directors, deliberating the purchase or sale of assets or business interests. There is usually a presumption that the Board of Directors will rely on the fairness opinion in reaching its conclusions on proceeding with or completing a transaction. There is also a presumption that other third parties would need to have access to the fairness opinion or that the reference to the fairness opinion report may be needed in publications or filings available to the general public.

Fair Value Studies

“Fair value” type reports include a broad category of valuation-based services usually provided in connection with requirements arising during the purchase, sale or transfer of assets or interests or as a result of contractual, governmental, regulatory, or statutory requirements such as disclosures in financial statements as stipulated by FASB and International Accounting Standards Board (IASB) and national regulatory bodies. As a result, assets and liabilities need to be analyzed from a fair value perspective.

These services include:

  • Valuation analyses or estimates of value required in connection with articles of association, by-laws, or other forms of shareholders’ agreements
  • Estimates of value required under contracts between parties or resulting from disputes between parties
  • Valuation analyses related to tax mitigation and/or planning,
  • Preparation of estimates, analyses, and reports concerning matter of tax, financial, or accounting solvency frequently involving either “balance sheet” tests on the value of assets (Impairment testing studies, valuation of investments, derivatives securities and inventories)
  • Adequacy of consideration, for example, “contribution-in-kind” paid or received, in connection with a specific transaction or event.

Valuation services provided in connection with fair value studies and fairness opinions generally are based on legal or statutory requirements and may involve unique or nonstandard valuation procedures and/or definition of the standard of value measurements. Services provided in connection with these types of requirements involve specialized knowledge and experience .

Valuation Advisory Services

Fair Value Measurements in Financial Reporting

During the past few years a move towards fair value accounting has taken place, mainly led by provisions of IFRS and US GAAP. With the use of fair value, financial reporting becomes even more complex as there are few assets and liabilities where a market value can’t be readily established. Instead, companies and their auditors need to rely on valuation models that involve the application of methods and assumptions that can be highly judgmental.

As fair value has become more and more important as a measurement standard for financial reporting purposes, it becomes increasingly important for auditors to understand the dynamics of fair value measurement and have access to relevant expertise and resources.

Deloitte member firm valuation practitioners provide support to audit engagement  teams in connection with procedures related to testing fair value measurements that may include:

  • Business interests valuation
  • Tangible assets valuation
  • Intangible assets valuation
  • Share-based payment valuation
  • Business combination/Purchase price allocation
  •  Impairment Test
  • Financial instruments including:
    ○ Convertible bonds ○ Swaps ○ Guarantee ○ Mortgage-backed securities
    ○ Asset-backed securities ○ Collateralized debt/bond obligations
    ○ Transaction Advisory

Where evaluation strategic alternatives, acquisitions, or new ventures, Deloitte can provide in-depth advice to clients in their decision making. Drawing on extensive experience across a broad range of industries, specialized practitioners can provide perspectives on value as well as assistance in interpreting the impact on transaction structuring, deal making and risk management strategies. Clients can then focus their resources on those factors with the greatest impact on value to make the most efficient use of resources and achieve speed and efficiency throughout the transaction process.

Fund Portfolio Valuation

Many private equity, venture capital or hedge funds require independent valuation of portfolio investments for financial reporting purposes.  We can estimate the fair value of investments in accordance with IFRS, US GAAP or other national accounting requirements and industry guidelines such as the International Private Equity and Venture Capital Valuation Guidelines and the Private Equity Industry Guideline Group’s US Private Equity Valuation Guidelines. Alternatively, we can analyze and report on the reasonableness of management’s internal fair value estimate.

Model Design and Risk Assessment for Financial Instruments

With volatile markets, complex financial structured products and increasing regulation, there is a growing need for accurate and reliable financial modeling and effective risk management models and systems. Deloitte can assist with your quantitative valuation and risk modeling needs, including model design and independent risk assessment against the latest industry benchmarks and regulations.

Infrastructure / Project Finance Advisory

As one of the largest and most comprehensive advisory organization in the Asia Pacific region, Deloitte Financial Advisory Services ("FAS") practice provides our clients with full range of services and supports. Project Finance Advisory ("PFA") service line targets at advising large scale of Chinese and multi-national companies on their outbound and inbound investment projects.

Project Finance Advisory Services is the provision of financing advice on greenfield projects in the sectors such as

  • Electricity power
  • Water Resource
  • Renewable energy
  • Oil and gas (upstream, pipeline, refinery, petrochemicals)
  • Infrastructure (including high speed railway, high way, bridge)
  • Mining and nature resource
  • Manufacturing
  • Industry

Deloitte is a unique provider of PFA service amongst the Big Four. With rapid development of Great China companies' outbound investment, our PFA business has been highly demanded by various clients.
The main services are currently provided corresponding to needs of clients including:

  • Project Finance Advisory
  • Debt Finance Advisory
  • Project bidding advisory
  • Project feasibility study
  • Project Transaction advisory
  • Financial modeling
    ○ Project Modeling ○ Financial and Economic benefit analysis
    ○ Sensitivity analysis ○ Scenario analysis
    ○ Regression and monte carlo simulation
    ○ Bidding modeling support

People

Peter Fan

Peter Fan

Managing Partner

Peter Fan is Managing Partner of FAS and Chief Operating Officer (COO) of Deloitte & Touche. He is not only an expert in helping foreign companies make an IPO in Taiwan, but also familiar with the pra... More

James Lee

James Lee

Managing Director

Mr. James S. Lee is the partner of Deloitte & Touche in Taiwan. He joined Deloitte & Touche in 2005 and had over 15 years of professional experience in corporate finance advisory services, transaction... More