Valuation & Economics
Valuations are a fundamental business requirement in making decisions, negotiating transaction prices, preparing financial statements and satisfying tax and regulatory requirements. To perform such valuations, an in-depth understanding of the market and underlying assets is required, together with an analysis of financial and non-financial information. PwC is highly experienced in providing valuation opinions and related strategic advice.
Our services:
- Valuation consulting
- Independent expert opinion
- Financial reporting valuations
- Tax valuations
Valuation consulting
Whether it’s for reporting requirements or negotiating a complex deal, the determination of an appropriate value is unavoidable. Valuing all or part of a business requires understanding and analysis of a variety of complex factors. To fully appreciate the value, businesses and individuals should partner with specialists who possess the requisite both the detailed technical knowledge of value drivers and in-depth industry expertise, to examine the assumptions made to arrive at an accurate valuation.
The challenges you face
You are planning on conducting a merger, an acquisition, joint venture or alliance.
You want to transfer assets within the organisation or restructure and need to understand their value.
You need to apply a common methodology across all countries to generate a more reliable view on the value of an international business.
How PwC can help
Our valuation specialists can assist you to achieve an in-depth understanding of the value of each business or asset in a transaction. Our technical expertise together with our in-depth industry knowledge allows us to understand the specific factors driving each individual deal.
Independent expert opinion
There are a number of circumstances where an independent opinion of value is required, and each different scenario requires specialist knowledge and the application of specific skills. Courts, regulators, tax authorities, shareholders and businesses will, at different times, all need an objective specialist to provide a valuation of an asset or a business. The context and purpose of the valuation determines the approach that needs to be taken to provide an appropriate opinion.
The challenges you face
You’re planning to conduct an investment, disposal or securitisation and need a fairness opinion regarding the value of the underlying target.
In the event of a merger or acquisition, an objective verification of the values inherent in the transaction based on an exchange of shares is required to confirm that the mechanism used offers an appropriate value. Similarly, where an asset is exchanged for an equity stake in a business, an independent valuation is required to demonstrate the appropriate value of the in-kind contribution.
In commercial disputes, courts require a completely independent and objective analysis of disputed assets. In these circumstances the opinion is given solely at the behest of the court and total objectivity is vital.
In shareholder disputes, an opinion is often required by shareholders to verify valuations in the event of an issue of share options which dilute existing holdings.
How PwC can help
Our valuation specialists possess technical expertise that enables them to assess the value of an asset portfolio in different transaction structures and deliver a fairness opinion report.
Financial reporting valuations
Financial reporting valuations are often performed for organisations that need a fair value measurement for part of their business, or particular assets (tangible or intangible), in accordance with IFRS, US GAAP, or Taiwan Enterprise Accounting Standards (EAS). These situations call for valuations by specialists who understand both the specific accounting implications and the wider commercial context in which those financial reporting valuations will apply.
We have extensive experience addressing valuation issues, including
If you’re considering a deal and wish to assess how it would impact your post-deal financial statements.
If you’ve just completed a transaction and need to allocate your acquisition cost in accordance with IFRS, US GAAP, or Taiwan EAS for financial reporting requirements (purchase price allocation.)
Annual impairment reviews under EAS 19 or IAS 36.
Valuations of financial instruments in accordance with EAS 15 or IFRS 9.
How PwC can help
PwC's valuation services draw on considerable technical and financial expertise, as well as our ability to access a full range of accounting specialists, to deliver integrated advice to our clients.
Tax valuations
Tax valuations often lie at the heart of disputes and negotiations with tax authorities. A sure-footed response to their specific demands requires specialist advice and knowledge of their working methods and practices.
To maximise the possible tax benefits from a transaction, the tax aspects need to be considered when the transaction is being structured.
In the event of a dispute with the tax authorities based on valuations, appropriate documentation processes are essential for a swift and successful resolution.
Complex assets such as goodwill, know-how and other intangibles are required to be valued for tax purposes.
Unlisted businesses face specific challenges when negotiating values with the tax authorities.
The challenges you face
You are in a dispute about the value of a disposed business, or the transfer price of an unlisted business, and need to negotiate with the tax authorities.
How PwC can help
Our teams of dedicated specialists understand the demands of the tax authorities and are able to provide expert knowledge of the latest valuation techniques combined with clearly documented advice.
