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Valuations

Value creation is key to business and transaction success.

Valuation is the process of estimating what something is worth. However, valuation is often a controversial & complex subject. It requires an in-depth understanding of the market, company, competitor's financial & non-financial information, as well as the respective legal or regulatory environment.

Several valuation methods are used to determine the value of a company. A combination of methods develops mutually supporting evidence towards the valuation conclusion. The generally accepted valuation approaches are the Income approach, Market approach and Cost approach. 

Key Service Offerings

  • Indicative and independent valuations.  We perform valuations of business enterprises and equity instruments for, inter alia, transactions, disputes and to assist management in making decisions.
  • Fairness opinions and Fair and reasonable opinions.  We specialise in providing independent opinions which are required in terms of the JSE (related party transactions and share issues at a discount) and Takeover Regulation Panel rules.
  • SARB letters.  We provide limited assurance valuation reporting for South African Reserve Bank purposes where transactions involve non-residents.
  • Pre and post-acquisition purchase price allocation valuations and intangible asset valuations.  We value intangible assets for financial reporting purposes (International Financial Reporting Standard (IFRS) 3), relating to an acquisition. We also perform independent reviews of purchase price allocation valuations.
  • Tangible asset valuations.  We perform and review valuations of property, plant and equipment for fair value purposes and in line with the requirements of IAS 16.
  • Profit forecast reviews.  We review profit forecasts required to meet JSE Listings Requirements (field work performed by Valuations and signed off by audit partner).
  • Going concern reviews.  We review cash flow forecasts in order to test the going concern assumption for financial reporting purposes.
  • Impairment testing.  We perform and review valuations for the purposes of determining the recoverable amount of assets for impairment testing in terms of IAS 36.
  • Solvency and liquidity reviews.  We perform and review valuations for the purposes of determining the recoverable amount of assets for impairment testing in terms of IAS 36.
  • Working capital reviews.  We review working capital forecasts required to meet JSE listings requirements. 

 

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