Whether it’s for financial reporting, company law or tax reasons we can provide valuations to cover your requirements supported by an extensive team of specialist tax professionals in our parent company, PEM.
There are an increasing number of regulatory reasons why a business valuation may be required, often to a strict timetable.
A valuation by an independent party of the non-cash consideration offered for shares to be allotted in a public company (section 593, Companies Act 2006). A report on the value must be made to the company within six months of the proposed allotment and sent to the proposed allottee.
Valuations are needed to meet the requirements of IFRS 2, whereby unquoted companies undertaking share-based payment transactions must reflect the effect of such transactions in their accounts.
An independent view on enterprise value is a key input to decision making when many parties will be impacted and can give an extra layer of comfort where a pre-pack is contemplated, and show that certain actions, such as a Company Voluntary Arrangement (‘CVA’), are vital to future viability.
These evaluate the overall fairness of offer prices in tender offers and are usually procured by the directors of target companies in the majority of public tender offers. UK boards must request independent financial advice before deciding whether to recommend an offer to shareholders. Public offers are governed by the Takeover Code and directors need to get independent advice on a takeover offer to share key findings with shareholders.
Are you a company director, corporate solicitor, insolvency practitioner or other adviser with a client facing the above issues? Get in touch for an informal chat – every call is treated as confidential and there are no obligations attached. We’re here to be helpful.