02 · Valuation

Valuations that hold up to scrutiny

A valuation is only useful if it withstands challenge — from a buyer, the tax authority, an auditor or a court. We always work from a position of independence, leaving every conclusion documented and traceable, with the methodology each purpose demands. We explain the reasoning behind every figure in language you can take to your board or to the other side.

Use cases

Why do you need a valuation?

Buying or selling

Supporting the price in a transaction or an investor entry, on whichever side of the table you sit.

Financial reporting

Purchase price allocation (PPA), impairment testing and fair value measurement under local GAAP and IFRS.

Tax

Tax-driven transactions, restructurings and transfer pricing in coordination with ALS TP.

Disputes and litigation

Expert reports, damage quantification and shareholder disputes, in arbitration or before the courts.

Financing

Valuation of security and support to lenders and creditors in refinancing processes.

Strategic decision-making

Understanding what creates or destroys value to allocate capital and choose between alternatives.

Methodology

How do we reach the figure?

We combine the three recognised approaches and select the one that best reflects your situation. We value businesses as a whole, equity stakes, intangibles (brand, customer relationships, technology) and complex financial instruments.

Income approach

Discounted cash flow (DCF) and intangible-specific methods such as the multi-period excess earnings method (MPEEM) or the relief-from-royalty method.

Market approach

Multiples from comparable listed companies and precedent transactions, with a carefully selected and adjusted peer set.

Cost approach

Replacement cost or net asset value, useful as a cross-check or when the business is valued by what it would cost to replicate.

What we value

01

Businesses and shareholdings

We value stakes in unlisted entities for transfers between shareholders, capital exits, non-cash contributions and any transaction requiring arm's length value to be demonstrated.

02

Business lines

We value distinct business units in demergers, mergers and contributions, determining the share exchange ratio and substantiating the absence of an exclusively tax-driven motive.

03

Intangible assets

We determine the market value of brands, software, patents, know-how, goodwill and image rights for related-party transactions, licence arrangements and restructurings.

04

Lost profits and actual damages

We quantify economic loss in commercial litigation and arbitration, projecting the flows the injured party would have generated in the absence of the damage.

05

Financial instruments

We value loans, guarantees and derivatives between parties, determining the market price in accordance with methodologies recognised by international standards.

06

Reorganisations and restructurings

In transfers of assets, functions or risks, we value the transferred elements to demonstrate that the consideration is at arm's length and that no value exits without compensation.

How we conduct a valuation

Defining the engagement and scope

We agree on the asset or business to be valued, the purpose of the report, the reference date and the applicable standards. This phase determines the primary methodology, the cross-check analyses and the delivery format.

Information gathering and analysis

We request historical financial statements, business projections, relevant contracts and sector data. We identify the key assumptions and assess the consistency of the data underpinning the model.

Modelling and cross-checks

We build the valuation model, apply the primary methodology and the cross-check methods, conduct sensitivity analysis and compare the result against market references to verify its reasonableness.

Technical valuation report

We deliver the report setting out the assumptions, methodology, model and valuation conclusion, drafted to the technical standard and format appropriate for submission to the tax authority, a court, an arbitrator or as support for a transaction.

FAQs

Frequently asked questions

What is the difference between a fiscal valuation and a financial valuation?

A fiscal valuation is carried out to determine the tax base of a transaction subject to tax rules and must conform to the criteria the tax authority accepts as arm's length. A financial valuation serves a corporate or market purpose: mergers and acquisitions, financing, litigation or due diligence. In many cases the same report can serve both purposes, but the format and depth of analysis differ depending on the primary use.

Which methodology is most appropriate for my business?

It depends on the type of business, its sector and the purpose of the valuation. For businesses with verifiable cash flow projections, the DCF is the benchmark method. Market multiples provide a robust cross-check when relevant comparables exist. For holding companies or businesses whose value rests primarily on their assets, the cost or net asset approach is most appropriate. In the majority of engagements we apply more than one method and reconcile the results.

Can the report be used in court or arbitration proceedings?

Yes. We prepare expert valuation reports to the standard of rigour required by the principal international arbitration rules (ICC, ICSID, UNCITRAL) and for court proceedings. The report incorporates the analysis of relevant facts, the methodology applied, the assumptions and their basis, sensitivity analysis and the valuation conclusions, all in the format required by the procedural rules of the leading arbitration centres.

How long does a valuation take?

A mid-market company valuation using DCF methodology and multiples cross-checks can typically be completed within three to six weeks from the date financial statements, projections and the necessary business information are available. Engagements involving groups with multiple subsidiaries, complex intangible valuations or litigation with significant counterfactual analysis require longer timeframes.

Is ALS's valuation independent?

Yes. ALS Value always acts as an independent adviser, with no interest in the outcome of the transaction or in the final value obtained. This distinguishes our valuations from those prepared by advisers who hold an active buy-side or sell-side mandate: our sole objective is for the figure to be technically sound and defensible.

How much does a valuation cost?

The cost depends on the scope of the engagement: the complexity of the corporate structure, the number of assets or entities to be valued, the purpose of the report and the level of detail required. A mid-market company valuation using a single primary methodology has a very different cost from an expert report for an international arbitration with counterfactual analysis. We agree fees before starting work, with no surprises in the final invoice.

ALS Value

Ask us about the right approach for your valuation. We respond with technical judgement and no strings attached.

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