As most companies are worth more than the sum of their parts, gaining a complete understanding of an entity’s underlying value, requires a determination of intangible assets.

In addition to this and in terms of accounting requirements, IAS 36: Impairment of Assets requires that there is impairment testing on goodwill on an annual basis. Furthermore, it involves a rigorous understanding of the operational aspects which should reliably reflect the consumption of the economic benefits incorporated in purchased goodwill.

Merchantec Capital has the expertise and experience to perform the valuation of complex intangible assets/goodwill which can be relied upon from both an internal management perspective as well as for external purposes, such as purchase/sale agreements or audit requirements.

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.

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Independent Expert Report

In compliance with the South African Companies Act, 2008, companies are required to obtain an IER to provide shareholders with an opinion as to whether a transaction is fair and/or reasonable.

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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.

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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.

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Option Valuations

Option valuation estimates the value of unique financial instruments, including share-based payments, employee incentive schemes and general share options.

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Fund Valuations

Independent valuation of underlying investments in funds and investment holding companies.

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