IFRS 3 requires that once an acquisition becomes effective all intangible assets are separately identified apart from goodwill and carried at fair value on the acquirer’s statement of financial position.
These valuations require tailored expertise due to the judgement required in assigning individual values to a variety of intangible assets. Furthermore, they cannot be performed by a firm’s auditor due to a conflict of independence as the auditors would be required to audit these fair values. Thus, by using a qualified external valuation expert, the transparency, reliability and independence of the fair value of the intangibles will be heightened.
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.
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.
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.
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.
