|
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.
[back to top]
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.
[back 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.
[back to top]
| 
