Valuation Services
Our Valuation Services
In light of past accounting scandals and the growing complexity of the derivatives market, investors and stock exchanges around the world require accurate and timely information about the value of financial instruments and derivatives. Under international and Hong Kong accounting standards, a fair value assessment of financial instruments is required for financial reporting.
Our team of qualified and experienced valuers can provide independent third party valuation advices on financial instruments such as :
– Currency and interest rate forward and swap contracts;
– Share options and warrants;
– Convertible debt and corporate notes;
– Financial and mortgage guarantees; and
– Expected credit losses.
To evaluate the financial instruments, we will adopt the appropriate pricing methodology in which would include but not limited to :
– Black-Scholes Pricing Model
– Binomial Pricing Model
– Trinomial Pricing Model
– Monte Carlo Simulation
For the assessment of the ECL of financial assets, it should reflect :
– An unbiased and probability-weighted amount of potential loss that is determined by evaluating a range of possible outcomes;
– The time value of money; and
– Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.
Within today’s fast-paced commercial landscape, businesses are constantly engaging in corporate transactions and actively participating in mergers and acquisitions to take advantage of opportunities and retain a competitive edge. As such, efficient, accurate, and timely information regarding the market value is of high importance.
As a solution, our team of professionals is competent in providing you with the valuation of businesses and operating units for both listed and private companies. We will adopt the appropriate approaches in compliance with the necessary standards and regulations to perform valuation service.
We serve clients across different industries including but not limited to the following :
– Pharmaceutical and Health care
– Metal and Mining
– Technology
– Agriculture and Forestry
– Financial services
– Fast-Moving Consumer Goods
– Hospitality
– Electronics and Information technology
– Construction and Infrastructure
– Logistics and terminal operations
– OEM, ODM and OBM
– Media and advertising
– Retail and wholesale
– Utilities
In addition to traditional industries, given the new listing rules reform introduced by the Hong Kong Exchanges and Clearing Limited in 2018, we also conduct the valuation of biotech companies under Chapter 18A, which do not have any prior record of revenue or profit and high growth and innovative companies with weighted voting rights.
There are three generally accepted approaches to obtain the value of the company, namely the Market Approach, the Asset Approach, and the Income Approach. Each of these approaches is appropriate in one or more circumstances, and sometimes, two or more approaches may be used together. Whether to adopt a particular approach will be determined by the specific characteristics of the subject of the valuation.
Within the present market landscape, intangible assets such as brand names, patents, customer relationships, etc. are utilized by many companies. These intangible assets can give firm competitive advantage and often constitute significant portion of a firm’s balance sheet. We specialize in producing independent valuation of intangible assets as required for financial reporting and purchase price allocation.
Under the relevant standards, intangible assets are needed to be re-assessed in the ever-changing market landscape. As such, we offer valuation services for these intangible assets in compliance with listing rules and standards. Our service includes but not limited to the following intangible assets :
– Contracts;
– Patent, Trademarks, licenses, and copyright of materials;
– Websites and data;
– Technical know-how; and
– Customer relationships.
There are three generally accepted approaches to obtain the value of an intangible asset: Market Approach, Cost Approach, and Income Approach. Under each approach, several methods are available which can be used to assess the value of a subject. Each method uses a specific procedure to determine the value. Each of these approaches is appropriate in one or more circumstances, and sometimes, two or more approaches may be used together. Whether to adopt a particular approach will be determined by the specific characteristics of the subject of the valuation. It is also common practice to employ several valuation methods under each approach. Therefore, no one valuation approach or method is definitive.
The principal valuation methods under the Income Approach used in the valuation of intangible assets are the relief-from-royalty method, with-and-without method, excess earnings method, and greenfield method.
A single machine may be simple to value but compared to an entire factory, that’s a different story. We have a team of qualified professionals capable of valuing a range of assets for your specific business purpose. These assets include but are not limited to :
– Manufacturing plants and equipment;
– Fishing vessels;
– Machinery;
– Utility plants and networks including power and water;
– Gas and water pipelines;
– Transportation including motor vehicles; and
– Mining equipment.
Besides, our clients comprise of those participating in natural resources, natural gas supply, agriculture, fishery and husbandry, food and beverage, and manufacturing industries.
In valuing plants and machinery, we employ solutions appropriate for the valuation, mainly taking a mix of approaches to achieve our opinion of value.
No matter the purpose, an accurate and precise property value is critical to your investment strategy and portfolio. Our team of registered valuer and qualified professionals is capable of providing consultancy services and property valuation reports for your specific needs. Our valuation experiences cover a myriad of real estate locating in Hong Kong, China, and abroad.
Our professional team provides a range of valuation services on properties including :
– Residential, commercial, and office properties;
– Industrial complexes and factories;
– Land and properties under development;
– Agricultural sites; and
– Hotels, restaurants, golf courses, and other entertainment venues.
Furthermore, we have experience in valuing property for the following purposes :
– Mergers and Acquisitions;
– Initial Public Offerings;
– Financial Reporting;
– Project financing;
– Liquidation; and
– Second review.
As part of a valuation review, our professionals may perform certain valuation procedures to review the work of another valuer. The scope of the review, subject to the available information and data provided by the instructing party, included assessing :
– The appropriateness of the valuation methodology used to determine the value of the subject.
– The reasonableness of certain parameters and inputs used in the valuation.
– The numerical working of the valuation.
Our project consultancy offers professional advice, cost-effective and practical solutions in asset enhancement, building survey, facilities maintenance and project management to our clients and their ever changing requirements. Our services include :
– Structural survey, defects report and its evaluation;
– Advice on licence applications and unauthorized building works review;
– Project feasibility study and cost estimate;
– Planning applications and addition and alteration works;
– Project management to development monitoring;
– Investigation, design and upgrading of building facilities; and
– Expert witness.
