Methodology Of Value
Before we start a project, we confirm our understanding of the assignment, scheduling and fees. In most cases we set up an inspection visit. We take notes and photos, we look up specifications and documents related to the assets. We agree on the prerequisites of the valuation and the level of details required. The most common value prerequisites are Going Concern (market value in continued use), Orderly Liquidation and Forced Liquidation. All or agreed values are included for each item of the valuation.
Other value bases may also be considered if a USPAP type valuation is required.
Purpose of Use:
- Banking and Finance
Establish pre-lend security, asset identification, disposal.
- Auditing and tax consolidation
Official company reporting, asset registers, tax consideration, national and international transfer pricing.
- Mergers and Acquisitions
Professional, independent opinion of value for negotiation, disposal.
Replacement and reinstatement to meet asset value, registration, avoid over insurance and under insurance.
Divorce and other disputes inside and outside the court, 3rd party expertise.
Intended Use And Level Of Assurance And Details
The intended use of the valuation is important. It may be documentation for the auditors, the tax authorities, lenders, insurance company or…