Corporate Value Assessment

The need for professional value assessment originates from the awareness that the economic items shown in accounting records usually differ from the actual market values of the same economy category due to the effects of the use of different accounting policies and directions.

Fiduciaria can prepare an assessment report which meets the international value assessment standards for different needs and purposes.

THE MOST FREQUENT REASONS FOR THE VALUE ASSESSMENT REQUIREMENT

The following typical transactions require the value assessment of the company:

1. Purchase or sale of the whole company, of a part of a company or a stake in a company
2. Takeover procedures
3. Withdrawal and payout of a partner
4. Mergers (calculation of conversion rates)
5. Management buyout or leveraged buyout (MBO, LBO)
6. Increase or decrease of capital
7. Reconciliation of accounting records with the market values of balance sheet categories, according to IAS 36 requirements
8. Rehabilitation, liquidation or estimate of the bankruptcy assets of the company involved in bankruptcy proceedings
9. Procedures stated in article 146 of ZFPPIPP  (Financial Performance,  Insolvency and Forced Termination Act )
10. Legal transactions such as inheritance of a company, assessment of entrepreneurial contracts, partition of a company and similar
11. Internal assessment of the corporate assets and business finance to support the management in making strategic financial decisions.

METHODOLOGY OF VALUE ASSESSMENT

Value assessment is prepared according to professional rules and regulations, ethical code and state-of-the-art assessment methods and procedures. According to the current situation we assess the value on the basis of:

1. yield-based method, where the method of discounting the future yields and /or the method of capitalization are used
2. market comparison method, where we decide between the use of the method of comparable purchases/sales, market multiples and the method of comparable companies classified in the Stock Market
3. assets-based method, where the value of individual assets and liabilities of the economic subject is assessed, mostly by using the method of adjusted book value.

REALIZATION OF THE SERVICES

The value assessment service can be realized as an individual project or as a part of a wider financial consultancy service. According to the agreed intention, there are two different possibilities of our relationship to the client in the value assessment procedure. We can assume the role of an authorized value assessor or the role of a financial consultant. Before the project is started, a contract is signed with the client, where the contents, amount of work, price and other assignments are agreed upon. Before the project is started, the client should present the consultant with the necessary documentation and allow access to information necessary to produce an accurate company performance overview and to issue the value statement. On the basis of the above mentioned data and information, the authorized assessor issues a written report that includes the value assessment of the company and its performance, individual assets or liabilities as well as the precise justification of the assessment results.

VALUE ASSESSMENT SERVICE USERS