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Valuation for Regulatory reasons

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.

Section 593 valuation

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.

Share-based payments

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.

Corporate restructuring

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.

Fairness opinions

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.

We like to talk

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.

"Many thanks for your valuation report. I find it extremely concise and well-constructed - well done!"
Doug Genge, Managing Director, Falcon Crane Hire
"Lake led his senior team in providing a thorough and robust valuation report. He understood the need to be clear and transparent in his methodology so that all shareholders accepted his valuation opinion. We were pleased to receive a more detailed report than we expected with a wide range of valuation methods used, helpfully including some comparisons with recent valuations in our sector."
Andrew Corkhill, Managing Director, Spectrum Acoustic Consultants
"The structure and level of detail of the report met our expectations perfectly. Thank you for working to our rather demanding timescales."
Julian Scarfe, Director, Innovia Technology
"The draft report does exactly what we need it to and is helping us finalise our shareholders agreement and related cross option policy."
Rik Totman, Director and Co-Founder, Cannon Consulting Engineers