Every business has its unique challenges. Understanding your current situation and the target business is one of the key steps in our valuations and assessments. With accumulated knowledge in various industries from serving over 200 public companies, our in-depth insights can serve your all-round valuation needs. Our Business & Intangible Asset Valuation Services can serve a wide range of purposes along your capital agenda.

Business Valuation Transaction, IPO & Fund Raising

  • Business Valuation for Transaction Reference
  • Financial Modelling of Your High-growth Business for Funding Rounds
  • Statutory Valuation of the Financial Statements Prior to an IPO
  • Statutory Valuation for an IPO application and Ongoing Annual Compliance

Financial Reporting (Business Valuation)

  • Purchase Price Allocation (“PPA”) – HKFRS 3
  • Goodwill Impairment – HKAS 36
  • Asset & Intangible Asset Impairment – HKAS 36
  • Portfolio Investments – IFRS 9 in 2018
  • Valuation Model Review and Validation

Project Evaluation (Business Valuation)

  • Project Evaluation, Demand Forecasting, Financial Modelling and Portfolio Optimization
  • Scenarios and Sensitivity Analyses, Real World Simulations and Strategies

Litigation and Tax Compliance

  • Litigation and Dispute Resolution
  • Tax and Transfer Pricing

Our Experience

To perform a comprehensive valuation, thorough business, accounting and finance knowledge are indispensable. Our business valuation team is experienced in wide range of professional services and our experience covers various industries, including but not limited to:

Experience – Professional Service
Auditing Banking Sustainability Study
Financial Due Diligence Risk Management –
Internal Control Advisory		 Transfer Pricing
Experience – Industry
Agriculture Automobile Catering Chemicals
Consumer & Retail Cleaning & Environment Hygiene Education Entertainment
Electronic equipment Financial services Gaming & Mobile Apps Health Care
Hotel & Tourism Infrastructure Insurance Logistics
Manufacturing Media & Entertainment Mining Multimedia
Pharmaceutical Printing & Packaging Property Development Renewable Energy
Technology Telecommunications Utilities Waste Management

Our Expertise

All our valuation reports are signed by senior member of our business valuation team who are well qualified and hold one or more of the following professional designations:

  • Certified Public Accountant (CPA)

  • Chartered Financial Analyst (CFA)

  • Financial Risk Manager (FRM)

  • Member of Royal Institution of Chartered Surveyors (MRICS)

  • Member of The Hong Kong Institute of Surveyor (HKIS)

  • Registered Professional Surveyors (RPS) in the General Practice Section

  • Master of Finance

  • Master of Statistics

  • Master of Environmental Engineering

  • Master of System Engineering and Engineering Management

Transaction, IPO & Fund Raising

For Business Owners, Entrepreneurs and Pioneers

Our valuations provide independent and credible opinions to support your capital agenda. From the day you decide to raise additional capital for growth, whether through a private round or an IPO, to the next day you identify a perfect target to acquire, our specialists from the business valuation team, located in Hong Kong and China, are ready to fulfil your all-round valuation needs.

Financial Modelling of Your High-growth Business for Funding Rounds

We will meticulously analyze and visualize your business ideas and expansion plans through our comprehensive financial and economic models, industry and market research, and supported by technical reviews. These insights will undoubtedly be of great interest to your potential investors.

Statutory Valuation of the Financial Statements Prior to an IPO

Apart from the business prospect, your historical pre-IPO financial results may be critically impacted by the enterprise value at the reporting dates. Our assessments on the fair value of various classes of instruments issued prior to an IPO can provide additional assurance to your auditors, regulators and future public investors.

Statutory Valuation for an IPO Application and Ongoing Annual Compliance

The reporting accountants, stock exchange, and regulators will thoroughly assess and review the valuations of your business and financial results. We are committed to adhering to the highest standards of valuation methodologies and the latest practices widely accepted by market participants. This ensures that your disclosed valuation results will be easily comprehensible to the public users.

Valuation for Acquisition, Restructuring, Joint Venture, Divestiture and Privatization Purposes

The valuation of a target company is the paramount factor influencing the deal pricing and structure, regardless of which side of the agreement you are on. Our team ranks at the forefront of professional valuers in recent years, with the highest number of announced public circular documents featuring our business valuation results attached.

Financial Reporting

For Chief Financial Officers, Company Secretary, Financial Controllers, Managers and Auditors

Our valuations for financial reporting purpose aim at supporting your audits of the financial reports in accordance to the various Hong Kong Accounting Standards (“HKAS”) or Hong Kong Financial Reporting Standards (“HKFRS”). Majority of our team are holders of Certified Public Accountants. We are well equipped with the latest accounting knowledge and practices to facilitate efficient communication and coordination with your external auditors. We have good understanding on how our valuations can fulfill the audit requirements.

Purchase Price Allocation (“PPA”) – IFRS3 / HKFRS 3

• Identify the Intangible Assets with reference to the recognition criteria stated in HKAS 38
• Construct business models, assess the Internal Rate of Return and Weighted Average Return on Assets
• Perform Reasonableness Check on the recognized Goodwill or Gain from Bargaining Purchase via Business Valuation
• Valuation of Contingent Consideration – HKAS 37 & HKAS 39
• Valuation of Financial Asset and Financial Liabilities, e.g. Profit Guarantee – HKAS 39

Goodwill Impairment – IAS 36 / HKAS 36

• Identify the Cash Generating Unit (“CGU”). It is essential to match the coverage of the valuation model with the asset composition of the CGU under financial reporting. Our specialists, who are experienced in both auditing and valuation, provide comprehensive advice on how the CGU valuation can fulfill the HKAS and HKFRS requirements
• Identify the cash flow generated from the CGU. Our specialists assist the management to identify and isolate the cash flow stream relevant to the CGU for the valuation purpose.
• Measure the recoverable amount of the CGU, including 1) Fair Value assessment and 2) Value-in-Use assessment.

Portfolio Investments – IFRS 9 / HKFRS 9

• Historically, private fund general partners and limited partners might take the investment cost to form the Net Asset Value (“NAV”) basis of their illiquid positions, and no subsequent NAV re-measurements are conducted until investment exits or fund liquidations. However, from 1 January 2018 onwards under IFRS 9, the historical cost is no longer allowed as a prudent proxy for fair value determination. Fund managers and investors shall be aware of the critical impact of IFRS 9 on their books and fund performance.

Asset & Intangible Asset Impairment – IAS 36 / HKAS 36

• Inventories – HKAS 2. Our valuation is performed to assist the auditors in the determination of net realizable value.
• Biological Assets – HKAS 41. Our Valuation is supported by the advice from our Biological Asset Expert Team on the biological attributes including but not limited to Species, Specifications, Health Conditions, Quality, Age, Life Span, etc.

Valuation Model Review and Validation

• Our team provides flexible solutions to management and auditors. Our review services can be tailored and performed either under an agreed-upon procedure on components, such as valuation methodology, major assumption parameters, calculation flows, discount rate, or under an one-stop full package.

Intangible Asset Valuation

• Intangible Assets – HKAS 38. Our valuation experience covers various types of intangible assets including but not limited to:

Trademarks, Brand Name, Mining Right,  Concession Right, Technical Know-how, Franchise Agreement, Copyright, Domains, Backlog Sale, Customer Relationships, Distribution Networks, Non-competition Agreement, Licenses, Patent, Software, Management Team etc

Project Evaluation

For Management, Strategists, Investment Analysts

We are not just number crunchers, but based on your investment goal we have this mission to inspire you and ideally, facilitate your next successful expansion in accordance to a systematic and scientific strategic framework. We can advise on your next capital allocation decisions from a holistic view from the financial investors and other stakeholders, combining with our unparalleled knowledge in traditional finance, behavioral finance, green and socially responsible investment frameworks.

Picking the next correct project for your existing basket of investments is a challenge. We can assist you to critically assess the potential projects’ value drivers, return and risk characteristics, market sentiments and your strategic options, such that you do not miss the next Unicorn investments. Our holistic approach ensures that, on top of the immediate financial income from the target project, you do not miss out the potential long term synergies with your existing portfolio investments in your capital budgeting decisions. The long-term success and sustainability of your business are our topmost missions.

The real world has more complications than what a spreadsheet can always capture. We understand the inherited limitations, such that our answers to you can be more than just a number. We can focus on unveiling inspirational ideas to ensure you are fully aware of the Pros and Cons of a potential project from capital allocation perspectives. Our proprietary Monte-Carlo Project Simulator admits the real-world uncertainty and the inter-dependence of possible events, and thus identifies the most critical value drivers and risk factors that really matters to you, when designing the term sheet or negotiating with your deal counterparts. We do not over-complicate our models, only the most concise insights and messages are delivered to your attentions.

The valuations of your business and financial results will be critically assessed and reviewed by the reporting accountants, the stock exchange and regulators. We pursue and uphold the highest standard of valuation methodologies and latest practices broadly accepted by the market participants, such that your announced valuation results will be understandable to the public users.

The valuation of a target company is the single most important factor in driving the deal pricing and structure no matter you are on which side of the agreement. Our team tops the list of professional valuers in the recent years, in terms of the number of announced public circular documents having the valuer’s business valuation result attached.

Litigation and Tax Compliance

For Legal Advisers, Arbitrators and Tax Managers

We innovate our clients to solve really tough problems. Our previous experience and attention to the latest development in worldwide court cases and tax rulings can serve your various challenges below.

Litigation and Dispute Resolution

We have experience in acting as an expert witness for our client. Our expert witness report can assist you to measure your claim on damages and losses specific to your case context.

Tax and Transfer Pricing

Transactions, transfer of assets and equity interest between independent or related parties will oftentimes lead to immediate and prolonged tax impacts. Our specialist can provide valuation and pricing services in line with the local practices and OECD guidelines to support your specific tax scenarios.

Valtech provides all-round valuation services including business valuation advisory, expected credit loss valuation, property valuation, mining valuation and valuation for other assets with ISO 9001 certified quality management system. Our team is experienced in serving listed companies, private equity and companies working for IPO. We were formed by a team of professionals with diversity of expertise and experience.  Besides, Valtech team has hand-on experience in valuing specialized assets such as biological assets and mineral assets.

Business Valuation | Property Valuation | Expected Credit Loss (ECL) | Financial Instruments Valuation

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