Valtech Valuation Advisory recently completed the valuation of certain wealth management and financing businesses in Hong Kong for reference by a NASDAQ-listed company.
Hong Kong remains one of the world’s leading international financial centres and wealth management hubs. According to the Securities and Futures Commission (SFC), the asset and wealth management industry in Hong Kong managed approximately HK$31 trillion in assets as of 2024, with a significant portion sourced from non-Hong Kong investors, reflecting the city’s role as a gateway connecting global capital with Asia. In parallel, Hong Kong’s financing and lending sectors continue to benefit from strong capital market activity, increasing demand for alternative financing solutions, and growing cross-border business opportunities arising from the Greater Bay Area and broader Asia-Pacific region.
The target businesses operate across wealth management advisory and financing services. In performing the valuation, Valtech adopted both the Income Approach and the Market Approach. The application of multiple valuation approaches is generally considered to provide a comprehensive assessment of value by incorporating both company-specific fundamentals and market-based evidence.
Under the Income Approach, the valuation considered the future economic benefits expected to be generated by the target businesses. This approach enabled the valuation specialists to conduct detailed discussions with management regarding business strategies, growth initiatives, operating performance, funding capabilities, market opportunities and projected financial results. The resulting valuation reflects management’s expectations of future cash flows, adjusted where appropriate based on the valuation specialist’s independent assessment of key assumptions and risk factors.
Under the Market Approach, the Guideline Public Company Method was applied. This methodology derives valuation indications by reference to publicly traded companies engaged in wealth management, asset management, specialty finance, financial advisory, lending and other comparable financial services activities. The approach provides an objective market benchmark by incorporating prevailing market pricing, valuation multiples and investor sentiment toward comparable businesses.
The valuation indications derived from the Income Approach and Market Approach were analysed collectively. Cross-comparisons were performed to assess the reasonableness and consistency of the results, taking into consideration the targets’ business models, customer base, revenue streams, profitability, growth profile, competitive positioning and operational risks. Based on the overall assessment of all relevant valuation evidence, Valtech arrived at its final valuation conclusion.
Leveraging extensive experience in financial services valuation, Valtech regularly assists listed companies, private equity investors, financial institutions and multinational corporations with independent valuation services across Asia-Pacific and international markets.
