Valuation of companies and holdings
Valuation of businesses, shares and participatory interests in companies
We value controlling and minority shareholdings and participatory interests in the charter capital of Russian and foreign companies, including holding structures, and enterprises as property complexes.
The value of a shareholding depends on the rights it carries: a controlling shareholding gives control over the company's cash flows, while a minority shareholding gives only a share in them, so the value of one share differs from one shareholding to another.
Finappraisal values businesses for transactions, corporate decisions and reporting
Buying and selling a business
Supporting the price of a transaction with a shareholding or participatory interests, including on the basis of due diligence
Raising investment
Pre-money and post-money valuation of the company to determine the investor's stake and the entry terms
Corporate actions
In-kind contributions, share redemptions and reorganisations under the requirements of the Civil Code of the Russian Federation and Federal Law No. 208-FZ "On Joint-Stock Companies"
Withdrawal of a participant from an LLC
Determining the actual value of the participatory interest, the part of the company's net asset value proportional to the size of the interest (Article 14 of Federal Law No. 14-FZ "On Limited Liability Companies"), and valuing assets in a dispute over the amount of the payment
Financial reporting
Purchase price allocation (PPA) and goodwill impairment testing under IFRS 3 and IAS 36
Taxes and disputes
Confirming the market price of shares and participatory interests for tax purposes and supporting value in litigation
Value is determined in accordance with Federal Valuation Standard FSO No. 8 "Business Valuation". The income approach discounts cash flows under a reasoned forecast, with calculation of the discount rate and terminal value. The market approach uses guideline public company and guideline transaction multiples (EV/EBITDA, P/E and others). The cost approach uses the summation (adjusted net asset) method, restating assets and liabilities to market value, where earnings and cash flow cannot be reliably determined.
For a shareholding or participatory interest, the degree of control and marketability are taken into account: a control premium and discounts for lack of control and lack of marketability. The valuation report is prepared under Federal Law No. 135-FZ "On Valuation Activities in the Russian Federation" and sets out a reasoned conclusion of market value with supporting analysis for preparing and structuring transactions.