When are Valuations needed?
Takeovers (Price paid would be MV + a takeover premium)
When setting a price for an I.P.O (Initial Public Offer)
Selling ‘private’ shares
When using shares as loan security
When negotiating a sale of a private company
For liquidation purposes
What information helps Valuation?
Non current asset summaries
Working capital listing (debtors, creditors and stock)
Current industry environment
What are the limitations of the information provided?
Does the PPE need a costly revaluation?
Are there any contingent liabilities not taken into account?
Has deferred tax been calculated appropriately?
How has stock been valued?
Are all debtors receivable?
Are there any redundancy costs?
Any prior charges on assets?
What shareholding is being sold? Does it mean the business carries on?