Key
Questions
- How complex is the transaction/structure/business unit?
- Is your company prepared to accept the risk of challenge
on valuations by preparing valuations in-house?
- Does your accountant, tax adviser or auditor have sufficient
skills and independence to prepare a valuation acceptable
to the ATO and/or ASIC?
- Does your adviser have the experience to prepare a valuation
which will not be challenged by the authorities?
- Are you prepared to take the risk of challenge and possible
penalties for inadequate valuations?
- Does your adviser have an understanding of how valuations
prepared for different purposes interact with each other?
- How will the market perceive a valuation performed in-house
or by a related party?
- Will the preparation by your advisers improve your understanding
of the valuation processess involved and all the complexities?
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How
we can help
Leadenhall's independence and expertise is recognised by
those authorities that matter. Leadenhall explains valuation
processes and methodologies to you in a pragmatic way so that
the end result is not just the production of a number but
an understanding of how the numbers work and what drives value
and the valuation. Leadenhall understands, and is experienced
in dealing with, valuation issues arising from tax and corporate
legislation. Leadenhall has undertaken purchase price allocation
and goodwill impairment exercises for overseas companies and
is familiar with the accounting standards involved. We can
work with your team to determine:
- the purpose of the valuation
- the data required for the valuation
- what is required for a valuation to be acceptable to
the authorities
Leadenhall can use company internal data and data from external
sources on the industry to prepare a robust valuation for
your purpose. Leadenhall's advisers will be in contact with
you during the valuation process, checking on detail and making
certain that key aspects of the asset being measured are taken
into consideration. We will then discuss with you a draft
valuation in order to determine whether there is incorrect
data or misinterpretation of facts before presenting you with
a final valuation Report. We can also assist you on subsequent
revaluations of the asset by guiding you in your use of the
existing model or assisting in its updating.
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Our
track record
Leadenhall is a member of the ASIC Panel of Independent Experts
and an adviser to the Australian Taxation Office on valuation
matters. Leadenhall has over 20 years experience as an independent
corporate advisory firm with its focus on valuation and related
issues. Experience has included:
- Valuation of intangible assets as part of a purchase
price allocation assignment pursuant to US Accounting Standards
as a result of an acquisition by Sonic Innovations Inc.
- Valuation (in 2003) of intangibles of a Group as at 1993
for the purposes of establishing taxation liabilities.
- Review of valuation issues of subsidiaries and sub-subsidiaries
of a major overseas corporation as part of tax consolidation
planning.
- Allocation of purchase price for a US corporation on the
purchase of an Australian subsidiary. A subsequent assignment
reviewed impairment issues for the intangible assets acquired.
- Critique for the Australian Taxation Office of the valuation
undertaken by a major Australian accounting firm of a financial
services company as a prelude to a more detailed review
of valuations in excess of $1 billion.
- Critique for the Australian Taxation Office of valuations
undertaken by a major US accounting firm of an Australian
international Group.
- Valuation of a scheduling software solution and related
consulting services provider to establish an appropriate
carrying value of the business for a Government department.
- Valuation of B-Class shares in the company which operates
the Virginia Pipeline BOOT Scheme.
- Review the methodology employed by a private company in
preparing valuations to ensure compliance with ATO tax consolidation
guidelines for market valuations.
- Valuations of technology in the software, biotech, transport
building materials and energy sectors for the Australian
Taxation Office.
- Valuation review of a complex corporate group in the quarrying
industry for the purposes of a share transfer within the
group.
- Valuation review for statutory reporting purposes of Austrust
Ltd (now part of Tower Ltd. Subsequent assignments have
included valuations of the Wills Bank for Tower.
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For
your interest
The following pieces of legislation and articles may be of
interest:
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