Valuation of Companies
Determining the effective capital value of a company or company division/branch is a key element to support extraordinary operations such as disposals, mergers and acquisitions, when third parties are involved or regarding internal reorganisation of groups, among correlated parties.
PRAXI acts as a qualified, independent expert, ensuring all people involved an objective, sustainable value appraisal report, in compliance with all the pertinent regulations and best international standards.
The PRAXI team, wholly committed to company valuation projects, comprises chartered accountants and auditors who carry out the methodical supervision and management of operations (to identify the valuation method, analyse financial statements and business plans, and develop valuations); also engineers and chartered surveyors for appraisals of tangible assets (land, buildings, machinery and equipment etc.), and agents to appraise intangible assets (trademarks, patents and designs etc.).
PRAXI’s intervention is developed in the following phases:
- Examination of documentation and preliminary appraisal of company financial statements and business plans
- Meetings with the pertinent people of the company under appraisal for the necessary in-depth analysis of the main items of thefinancial statements and business plans
- Identification of the valuation method conformable to the specific characteristics of the company
- Valuation of the company’s economic capital and presentation of the values to management
- Drafting of the final report, setting forth the purpose and object of the valuation, the criteria it is based on and conclusions (business value), together with documentation of the valuation process adopted
- Appropriate certification/notorisation of the appraisal.
Valuation of Intangibles
PRAXI offers valuation services for intangible assets such as trademarks, patents, licences and concessions, technology and know-how, client portfolios, and proprietary software etc.
An accurate determination of the economic value of intangible assets provides a more realistic picture of company assets.
In this area, PRAXI has carried out valuations of extremely prestigious trademarks, patents and other intangibles in various sectors (hotel, food, chemical, design, trade fairs, finance, large-scale retail trade, mechanical, fashion, nautical, oil industry etc.).
Valuation of intangibles is aimed at:
- marking out the asset components not shown in financial statements
- starting up/completing the adjustment process in line with IAS/IFRS
- determining the real value of the company with regard to extraordinary operations or specific regulations on assets revaluation.
Thanks to its multi-disciplinary structure and vast experience gained, PRAXI:
- assists clients in accurately identifying intangibles
- determines the most appropriate valuation methods (discounting back market royalties, estimation of income/revenue differential, financial flows, cost recovery rights, historical or replacement cost)
- identifies the main comparables, on a national and international scale
- carries out valuations, applying the methods selected
- prepares appraisal reports, with any appropriate certification/notorisation.