5-1 Valuation

There are a lot of reasons why clients have the need to obtain a valuation. Some clients need valuation for M&A, others need valuation for reconstruction of their business structure. Our business valuation is built upon a thorough assessment of relevant factors that creates a appropriate sketch of entity’s current standing and long-term perspectives. Our valuation procedures are as follows.

  1. Understand entity’s business
  2. Evaluate economic environments
  3. Determine valuation approach
  4. Adjust financial data
  5. Estimate value of the entity
  6. Determine valuation methods excluded from valuation
  7. Finalize fair market value of the entity

We consider over 18 valuation method to estimate a value of the entity, and then calculate entity’s fair market value taking account of external business environment of the entity.

We can adjust and reclassify entity’s trial balance according to International Financial Reporting Standards (IFRSs) or International Financial Reporting Standard for Small and Medium-sized Entities (referred to as the “IFRS for SMEs”), and then evaluate the entity.

We also adjust and reclassify overseas entity’s local GAAP based trial balace according to International Financial Reporting Standards (IFRSs) or International Financial Reporting Standard for Small and Medium-sized Entities (referred to as the “IFRS for SMEs”), and then evaluate the entity.

Financial due diligence is needed when the entity do not disclose relevant information for valuation. For instance the entity primarily book according to tax accounting.