Valuations and Financial advise
We take very seriously your business and providing you financial advice it is a core service in our aim to help you maximize your business value. Our valuation service and financial advisory service are made by multidisciplinary experts ensure that we don’t need to transfer your business information to multiple people, so we can concentrate a good comprehensive understanding to provide you with the best advice or service. At Henry Towers we love your business and appreciate it is the most that matters to you, that’s why doing business with us is very simple.
We are aware of the serious implications and risks that may be involved in valuation work and especially sensitive to the importance of providing a service of maximum reliability, professionalism and independence. Henry Towers’ team of professionals have unquestionable technical capacity and experience, will allow you to satisfactorily cover your valuation needs however complex these may be. Working together we can achieve great things, it is in our mission to help you maximize your business.
Information gathering and context understanding about Financial Advise
Our team of experts will be working with you to understand the business context, objective and any other information, so we can assess properly the strategic alternatives. Being transparent and exchanging your company’s strategy will be very beneficial in order to maximize efficiency towards the objective.
Process execution for Valuations and Financial Advise
Henry Towers experienced advisors will perform all the required actions to fulfill with the agreed strategy, in order to achieve the expected results. We will prepare the documentation in order to maximize the value of your business, or define th scenarios to evaluate the best alternatives. We will be in permanent contact to ensure we take benefit of all potential tactics that we can apply towards achieving our objective. We want to ensure we don’t delay any opportunity so you can focus on your business in a safe and compliant manner.
Report during the process of Valuations and Financial Advise
We will be in permanent communication to keep you updated on the progress and the status of the different alternatives we are working on. We will elaborate a final report at the end of our service. It is critical that we are in sync in case of any change on the strategy.
There is no specific legislation of this area, we have extracted for you what we consider the most relevant norms of the International Valuation Standards Council (IVSC).
What is the IVSC?
The globalization of the markets and the different points of view among the valuation professionals of the different countries can lead to involuntary mistakes that considerably favor confusion. While all of the above is true, it is also true that both situations have contributed to the need for more international valuation standards to be useful in making a more homogenous valuation of goods and objects and to bring together all points of view.
In response to this situation, members of the technical committee of the Royal Institutions of Chartered Surveyors (RICS) and representatives of professional organizations of appraisers and valuators of the US began a dialogue in the late 1970s culminating in 1981 with the founding of International Assets Valuation Standards Committee (TIAVSC) which in 1994 changed its name to the International Valuation Standards Committee (IVSC), name with which it is currently known. The IVSC is an organization that brings together associations of valuation professionals from around the world who are simply required to follow a set of common rules.
The IVSC is a non-governmental organization member of the United Nations, to which its Economic and Social Council granted the status of Roster in May of 1985. The IVSC works in cooperation with the different countries and maintains relations with several international agencies, such as The OECD, the World Bank, the International Monetary Fund, the World Labor Organization, the European Union Commission and the International Bank for Settlements. IVSC also maintains very close relations with the IASB, IFAC, IFAC Audit Committee and IOSCO.
The IVSC provides to the accounting profession with recommendation and advice related to valuation issues and tries to coordinate both its standards and its work programs with the standards and programs of related professional bodies, collaborating with international organizations in the preparation and promulgation of new Rules on valuation.
What are the objectives of the IVSC?
The objective pursued by the IVSC is twofold; On the one hand to formulate and publish norms that serve for the valuation of goods taking into account:
- International goods markets
- The international business community and
- Existing needs in the new industrialized and developing countries, assisting them with the introduction and implementation of standards.
And on the other hand to identify the differences between local and regional standards, and work to ensure greater comparability and harmonization between local and regional valuation standards and international ones.
The IVSC has become a true international organization both by its members and by its aims. The IVSC that counted in its foundation with a number of members from other national associations has grown to have a total of 35 members in 2001.
The IVSC has the task of developing international valuation standards based on the disclosure structure previously developed by other international organizations, in this sense the IVSC has continued the work already initiated by its sister organization the IASB.
Standards, recommendations, IVSC applications
To fulfill its objectives the IVSC elaborates and publishes a series of documents:
- International Valuation Standards (IVS)
Although standards, recommendations, applications and comments can be published as separate sections, each of them is a part of a total set, therefore, definitions, reporting, principles and valuation concepts should be understood as Belonging to each and every one of the components.
As can be seen in the table, the IVSC has published a document dedicated to "concepts and general principles of valuation" and another one dedicated to the "code of conduct". The publication of both is due to the fact that the IVSC recognizes the complexity of the procedures used for valuation, the diversity of property concepts that exist, the difficulty of other professional disciplines in interpreting valuation activities or terminological problems.
In view of the foregoing, both the content and the format of the standards have been designed taking into account the general principles and the code of conduct, so that they can have a common link and can be applied and easily understood.
Stopping in each of the publications we can point out that:
Among standards, applications, recommendations and comments, standards are considered more important. The IVSC has published two standards IVS, 1 and IVS, 2 both in July 2000 and are related to the valuation based on "Market Value" (IVS, 1) and those using another basis (IVS , 2), the standards also serve as a basis for the International Valuation Application (IVAS). The applications are made because the valuations are made with an important variety of purpose between which are the financial statements, or those related to the credit decisions. The IVSC has published two (IVAS) the number 1 that is dedicated to the valuations for the financial statements that is in draft and VAT nº2 that deals with the valuations of the credit decisions.
The recommendations provide guidance for specific assessment problems and for applying standards to particular situations and activities. The recommendations have a shorter life than the rules and can be modified by adding opinions that may have origin for example in certain situations that have had to resolve the professionals. The recommendations are a very important complement to the standards but they are not norms themselves.
The IVSC has so far published a total of 10 recommendations, dedicated to solving the problems listed in the attached table, some of which are in draft phase.
Finally the IVSC publishes a series of comments, to facilitate the understanding and the applicability of the norms. Comments are important and can be used as an intermediate measure before standards and recommendations have been published. The IVSC has so far published three comments devoted to the subjects listed in the attached table.
The success so far of the IVSs has been evident and motivated by the important demand in the market for the valuation rules.
In summary, the IVSC is intended to facilitate the valuation tasks to the professionals of the same and following the example of the IASB extend to all countries the valuation rules promulgated by the committee, which will undoubtedly promote the transparency of international transactions.
What services are included in this area?
We can provide you service around:
- Valuation of companies and businesses
- Valuation of equity portfolios and private equity funds
- Intangible assets
- Complex financial instruments
- Purchase price allocation (PPA) and impairment testing
- “Fairness opinions” and independent expert reports on acquisitions, mergers, spin-offs, non-cash contributions, etc.
- Valuation reports as an independent expert in corporate disputes
- Valuations for tax and accounting purposes
- Valuation of IPOs and stock exchange exclusions
- Advisory on value creation
- Assistance in the preparation of merger and spin-off projects
- Preparation and review of business plans
- Preparation and revision of financial models
- Advisory on financial investment projects
- Assistance and preparation of IPOs and information memorándums.
What should I look for in a business valuation firm?
There are many criteria to consider. Education and specific training in business valuation are critical, but given the complexity of many business valuation assignments, credentials in business valuation represent only threshold requirements. The business valuation firm should provide examples of their ability to analyze unique fact situations. The ability to produce well documented reports is critical to build up trust. Finally, clients should also determine whether the valuation firm is responsive to client needs.
How long does the process last?
Generally speaking, from 30 to 45 days after the business appraiser receives the requested information from the client. Requests for expedited service are considered on a case by case basis.
Will the fees that I devote to the business valuation project be a wise investment of resources?
A well prepared business valuation is a central element in many transactions, as well as reporting, compliance and litigation matters. The costs involved with the preparation of a well-documented business valuation provide benefits that exceed the outlay of funds. A qualified business appraiser should be able to explain the benefits of a business valuation based on the specific intended use of the valuation.
What if I don’t require a full business valuation report, but only need some informal guidance?
We can be flexible to tailor our business valuation services to match your particular needs.
What information do you need in order to provide business valuation services?
Every project is different and will require different information, but we are going to ask for items such as financial statements, tax returns, operating agreements, articles of incorporation, information related to prior sales of interests in the business, etc.
Our experts understand the full complexity of deal issues, capital structures, and strategies. Hereto we have design a simple process to deliver high strategic services without losing your focus on the business.
Tax Partner at Henry Towers