While certain transactions such as share buy-backs, takeovers, corporate restructures or mergers & acquisitions require an Independent Expert Report (“IER”) by the Takeover Regulations Panel (“TRP”) before an affected transaction can be approved and voted on, it is also an important tool used by Shareholders to objectively analyse and make a decision regarding a proposed transaction. As media, social platforms and other information sources may have biased views on certain transactions, an Independent Valuation conducted by an expert will objectively report on the fairness and reasonability of the transaction.
Why use Merchantec as your independent expert?
We are accredited by the TRP and have over 20 years’ experience in the industry thereby understanding independence and that being impartial is fundamental to provide shareholders with a truly independent expert opinion. We employ an in-depth but speedy process as we have a complete understanding of the TRP regulations and processes to enable a smooth turnaround.
Which transactions require an independent expert report?
- S112 – Disposal of all or greater part of assets or undertakings by companies
- S113 – Amalgamation or a merger of companies
- S114 – Scheme of arrangements (this also includes the repurchase by a company of 5% or more of its issued share capital)
- S117 – Acquisition of the remaining voting securities not already held by a person or company
- S123 – Mandatory offers
- S125 – Comparable and partial offers.
We have invaluable experience and look forward to supporting you with our Independent Expert Report.
Valuation Services
Company Valuations
The purpose of performing a company valuation is to gain an independent view of the estimated amount for which an asset should exchange on the effective valuation date between a willing buyer and seller in an arm’s length transaction.
Fairness Opinions
A fairness opinion is a report prepared by a JSE approved independent expert, expressing an opinion on whether a transaction is fair/unfair to shareholders.
Purchase Price Allocation Valuation
The PPAV process is one whereby the fair value of all significant business intangible assets, including goodwill, and liabilities of an acquired enterprise must be determined in accordance with IFRS 3: Business Combinations.
Option Valuations
Option valuation estimates the value of unique financial instruments, including share-based payments, employee incentive schemes and general share options.
Intangible Asset & Goodwill Testing Valuation
Our team values an entity’s non-physical assets which generate a measurable economic benefit to the owner, such as customer relationships and brand. Additionally, we provide goodwill testing valuations which is an annual requirement of IFRS 36: Impairment of Assets.
Fund Valuations
Independent valuation of underlying investments in funds and investment holding companies.
