Valuation of Companies
Establishing the effective capital value of a company or company division is a key element in supporting extraordinary operations such as sell-offs, mergers and acquisitions, both when third parties are involved and when the operations regard related parties as part of a Group reorganisation process.
PRAXI acts as a qualified, independent expert, guaranteeing all the subjects involved an objective, sustainable value assessment report, compliant with all the pertinent regulations and top international standards.
PRAXI team that deals with company valuation projects is made up of chartered accountants and auditors, who supervise the methods used and the management of the operation (identification of the valuation method, financial statements and business plan analysis, valuation development), as well as engineers and chartered surveyors if required to assess tangible assets (land, buildings, plant, machinery, etc.) and agents if required to assess intangible assets (trademarks, patents, designs, etc.).
Stages of the process
PRAXI’s intervention comprises the following stages:
- examination of documents and preliminary assessment of the company’s financial statements and business plan
- meeting with the pertinent figures in the company under assessment for further information on the analysis of the main items in the financial statements and the business plan
- determination of the valuation method best suited to the specific characteristics of the company
- valuation of the company’s economic capital and presentation of figures to management
- drafting of the final report, setting forth the purpose and object of the valuation, the criteria it is based on and the conclusions (value of the business), together with documentation attesting to the valuation process adopted
- sworn certification of appraisal if required.
Valuation of Intangibles
PRAXI offers valuation services for intangible assets such as trademarks, patents, licences and concessions, technology and know-how, client portfolios, proprietary software, etc.
An accurate establishment of the economic value of intangibles is instrumental to providing a realistic picture of a company’s assets.
In this area, PRAXI has conducted valuations of extremely prestigious trademarks, as well as patents and other intangibles in a variety of sectors (hotels, food, chemicals, design, trade fairs, finance, major retailers, mechanical, fashion, nautical, oil, etc.).
The aim of such valuations is to:
- shed light on assets that do not appear in the financial statements
- initiate/complete a process of alignment with IAS/IFRS
- determine the effective value of the company on the occasion of extraordinary operations or specific regulations issued for the revaluation of assets.
PRAXI’s multi-disciplinary structure and experience allows us to:
- assist clients in accurately identifying intangibles
- determine the most appropriate valuation methods (discounting market royalties, estimate of differential income/revenue, financial flows, costo di ripristino dei diritti , historical or replacement cost)
- identify the main comparables, on a national and international scale
- conduct the valuation, applying the methods selected
- prepare the appraisal report, with sworn certification if required.