Valuation

Do you need to determine and understand the value of a business?

Shareholders, lenders, potential investors, directors and management can have many different reasons for needing to assess and determine the value of a business. An appropriate and robust valuation exercise will often be an important basis for concluding on strategic choices as well as other commercial and operational decisions.

In addition, there are several company law and other regulatory requirements that manadate the need for a valuation exercise. There may also be company, accounting or tax issues that as a matter of prudence make it sensible to obtain an independent valuation as part of decision documentation.

In conflicts involving a financial component, whether it be for private arbitration or for the courts, determination of asset values and economic damages require independent assessment of values/loss. Calculation of loss is in many circumstances an assessment of values or cash flows that have lapsed.

KWC has extensive experience with all manner of valuation issues involving a wide range of businesses and industries. Our goal is to provide our clients with access to the necessary competence and insight to develop solutions tailored to purpose every time.

The art of valuation is more than just a question of numbers and technique. There are often quite different assessments that form the basis of valuation for an entire company, an individual share (or a minority shareholding), an asset or a business division. The scope and form of presentation for a valuation must also be carefully evaluated in relation to purpose and how the valuation is to be used. Therefore, valuation requires insight and commercial understanding of markets and industries combined with specific competences within accounting and finance in the context of the specific asset and situation being evaluated.

KWC has over many years developed a solid technical framework and extensive practical experience and competence in all aspects of valuation. This ensures that our clients always receive well-founded, objective and independent valuation advice as the basis for important decisions.

Valuation exercises can be relevant or required in the following areas:

Commercial situations

  • Purchase / sale and other ownership changes in respect of companies and businesses
  • Equity transactions (share issues, mergers and de-mergers, capital redemptions etc.)
  • Development of share / equity-based incentive schemes
  • Calculation, modelling and interpretation of commercial agreements

Litigation support

  • Compulsory share acquisitions
  • Other share redemption mechanisms
  • Expert opinions
  • Estimation of damages and other economic evaluations
  • Inheritance- and related asset transfers
  • Tax matters

Regulatory matters

  • Purchase Price Allocation in connection with acquisitions / business combinations (PPA)
  • Valuation reports required by company law
  • Group internal transactions and transfer pricing
  • Impairment testing IFRS / Norwegian GAAP

Other purposes

  • Fairness opinions
  • Generational transition


Contact:

Simen B. Weiby
Telephone: (+47) 951 55 183
E-Mail: sbw@kw-c.no