Valuation & Economics

Valuations are a fundamental business requirement used in making decision, negotiating a transaction price, preparing financial statements and satisfying tax and regulatory requirements. In performing valuations, an in-depth understanding of the market and the asset is required, together with an analysis of financial and non-financial information. We are experienced in delivering quality valuation opinions and strategic advice and are able to provide satisfactory service to clients.

If this is your situation

  • You are planning to acquire or sell a business, and need to understand the value of the business and the professional advice to assist your transaction price negotiation.
  • You need an independent expert opinion for your transaction.
  • You need to understand the acquiring price allocation required by IFRS, US. GAAP or Taiwan GAAP.
  • You have a dispute regarding the value of a disposed business and need to negotiate with the tax authorities.
  • You need to assess the value of intangible assets.
  • You need to assess the financial performance for your business.

PwC can help you

Valuation Consulting

Whether it is done to satisfy reporting requirements or to negotiate 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 specialist experts, who possess the requisite both detailed technical knowledge of value drivers and in-depth industry expertise to examine the assumptions made to arrive at an accurate valuation.

  • Valuing all or part of a business requires input from a variety of specialist advisers who need to understand the value drivers relevant to a particular industry sector alongside the broader strategic aims of the business.
  • In the event of a merger, acquisition or alliance it is vital to understand the value likely to be created through the transaction.
  • The decision to restructure all or part of a business needs to be informed by a comprehensive understanding of the value of every aspect of the business.
  • Operating internationally means that an understanding of the issues driving valuations in different countries is essential. Applying a common methodology across all countries generates a more reliable view of an international business's value.

If this is your situation

  • You are planning on conducting a merger, an acquisition, JVs or alliances.
  • You want to transfer assets within the organization or re-structure the organization and need to understand the value
  • You need to apply a common methodology across all countries generates a more reliable view of an international business's value.

PwC can help you

  • Our valuation specialists can assist businesses to achieve an in-depth understanding of the value of each business or asset in a transaction. Our leading-edge technical expertise combined with our in-depth industry knowledge allows us to understand the specific factors driving each individual deal.

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Independent Expert Opinion

There is a wide range of circumstances in which 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 business. The context and purpose of the valuation determine the approach that needs to be taken to provide an appropriate opinion.

If this is your situation

  • You are planning on conducting an investment, disposal or securitization and need a fairness opinion regarding the value of underlying target.
  • In the event of a merger or acquisition, an objective verification of the values inherent in a transaction using an exchange of shares is required to confirm that the mechanism in use offers 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.

PwC can help you

  • Our valuation specialists possess leading-edge technical expertise enabling them to assess the value of an asset portfolio in different transaction structures and deliver a fairness opinion report.

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Accounting Valuations

Accounting valuations are often performed for organizations that need a fair value measurement for their part of a business, or particular assets (tangible or intangible), in accordance with Taiwan GAAP, US GAAP and IFRS. These situations call for valuation by specialists who understand both the specific accounting implications and the wider commercial context in which those accounting valuations will apply.

We have extensive experience addressing valuation issues, including

  • Annual impairment reviews under Taiwan SFAS 35.
  • Purchase Price Allocation for Taiwan GAAP, IFRS and US GAAP.
  • Valuations of unlisted companies, businesses, shareholdings, financial instruments, goodwill, know-how, brands and other intangible assets for accounting purpose.

If this is your situation

  • You need to allocate your acquisition cost in accordance with IFRS or US GAAP for financial reporting requirements.

PwC can help you

  • 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.

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Tax Valuations

Tax valuations often lie at the heart of disputes and negotiations with tax authorities. A sure-footed response to the specific demands of the tax authorities demands specialized advice and detailed knowledge of their working methods and practices.

  • To maximize 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 valuation, appropriate documentation processes are essential for a swift and successful resolution.
  • Complex assets such as goodwill, know-how and other intangibles have to be valued for tax purposes.
  • Unlisted businesses face specific challenges when negotiating values with the tax authorities.

If this is your situation

  • You have 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

PwC can help you

  • 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.

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Contact us

Hsiao-Fen Huang
Managing Director
Tel: +886 2 27296666, x25016
Email

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