| Key
Questions
- How much is this business worth? What
are the key value drivers? How can I enhance value?
- What are the different possibilities?
Which options are worthy of further consideration?
- What are the potential outcomes of different
decisions? ("what if" analysis)
- What are the major risks and sensitivities?
What can I do to help to maximise the likely outcomes?
- How can I derive synergies in this business?
- How can I maximise the value of this
transaction?
- What price do I wish to pay? What should
I expect in return for that price?
How
we can help
A common mistake in valuations is
to place too much focus on the estimated value and not pay
enough attention to key risks and sensitivities. Leadenhall
can help you to avoid this pitfall by clearly identifying
potential synergies and your negotiating price range. We pay
particular attention to risk and sensitivity analysis to highlight
key value drivers that maintain or enhance value. Leadenhall
can help you with:
Identification of
shareholder value
Leadenhall can assist you in determining the stand
alone value of the business, potential acquisition synergies
and your negotiating price range to ensure you derive value
from acquisitions and divestments.
Identification
of sensitivities and risks
Leadenhall will help you to understand the key risks and
sensitivities you face to allow you to optimise your outcomes
in transactions and decisions.
Scenario analysis
("What if")
"What if" analysis of the major risks and opportunities.
This allows you to identify and focus on the key value drivers
that generate or maintain value.
Risk Analysis (e.g.
Monte Carlo analysis)
Risk analysis adds an extra dimension to your understanding
of value by demonstrating the distribution of expected outcomes.
Risk Analysis gives an insight into the range and likelihood
of potential outcomes as well as the expected value.
Purchase Price Allocation
Leadenhall has extensive experience in purchase price allocation
in relation to international accounting requirements and
tax consolidation.
Structuring
Our experience in financial analysis, mergers and acquisitions
means we are well placed to advise you regarding your structuring
needs.
Our support can range from performing a
full and rigorous analysis through to an independent review
of your analyses and models. Leadenhall has broad industry
experience and can work in a variety of ways to add value.
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Our
track record
Leadenhall has served the needs of
customers since 1982, assisting a broad range of clients from
both the public and private sectors, including:
- AMP Henderson - Preparation of a Reasonably
Equivalent Value Opinion in May 2003 in conjunction with
Valuation Research Corporation, USA, relating to the proposed
divestment of the Multinet Energy Group in Victoria by Aquila,
Inc.
- University of Melbourne/Dairy Australia
- Valuation of technology and advice/negotiation support
to facilitate allocation of a Trade Mark value for the transfer
of a technology licence agreement. Detailed negotiation
support to develop new licensing terms for significant technology
with global sales of US $200 m.
- Valuation of medical practice improvement
processes and software as a prelude to revised licence arrangements.
- Allocation of purchase price for a US
corporation on the purchase of an Australian subsidiary.
Subsequent assignment reviewed impairment issues for the
intangible assets acquired.
- Valuation of two inter-linked manufacturing
companies and strategic advice to a purchaser on the process
and methodologies for acquisition. Negotiating and advice
to the Board of the purchaser on returns on funds and key
risk areas.
- 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. This was reviewed by the company's US auditors.
- Assessment of the potential market value
for a new plant variety for the Grains Research and Development
Corporation.
- Valuation of an Australian licence to
use a computer software programme for a Singaporean company
seeking to establish a local subsidiary.
- Performance audit of the valuation methodology
used in the float of the New South Wales TAB on behalf of
the New South Wales Audit Office.
- Valuation review of a captive insurance
company and report to the Directors of the major shareholder
as to reasonableness of a share transaction with a related
party.
- Business structuring advice regarding
a group of loosely associated businesses and issue of share
rights and private placements.
- Development of investment models for
a proposed major development project in Western Australia.
- Development of an asset valuation framework
for the Department of Marine and Harbors and subsequent
work on the valuation and strategic issues relating to the
potential sale of six Bulk Loading Plants owned by SA Ports
Corporation.
- Development of conceptual and policy
issues on pricing for new customers.
- Review of the strategies of a major primary
processing business and assessment of current and future
profitability levels.
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to top]
For
your interest
"It is widely accepted that most acquisitions
fail to create shareholder value" Marc Kozin, LEK/Alcar Consulting
Group LLC, Newsletter volume III.
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