Valuation Services 

In an increasingly global-scale business environment, the valuation issues surrounding mergers and acquisitions, financial reporting, restructuring, tax planning and disputes have become more complex than ever.  Moreover, with India recognizing the need to converge towards globally accepted International Financial Reporting Standards (IFRS) by 2011, accounting challenges that may have to be tackled during implementation cannot be ignored.

The global network of more than 1,000 people in 40 countries provides valuation analyses of business interests, intangible assets, financial instruments, etc. Our engagements support financial reporting, tax strategies, mergers and acquisitions, litigation matters and shareholder value creation tools.

We are organized by industry, so you can be sure that our valuation professionals are familiar with your business – right down to regulatory and asset-specific issues.

 

Our Portfolio of Valuation Services

 

KPMG in India provides a wide range of valuation services. Since valuations concern broader business activities, we work closely with other practices within KPMG including Transaction Services, Mergers & Acquisitions, Tax and Litigation Support. We provide assistance in the following areas:

Strategic Valuations

Our strategic valuation services include advising senior management, boards of directors, shareholders and promoters of public and private companies on evaluating transactions for acquisition or divestment opportunities, raising capital, considering mergers, de-mergers, joint ventures or divestitures.  We assess critical value drivers of the business and advise clients on the fair value of their businesses.

 

  • M&A Valuations

    We advise our clients in analyzing targets for acquisitions and evaluate divestment opportunities and provide pre and post transactional support in transaction process. We assist our clients in making strategic decisions by determining swap ratios during mergers

     
  • Internal Evaluations
    We offer independent advice to boards of directors to help them determine the right price to pay or accept for a business. We help evaluate shareholder value for stakeholders

 

  • Fairness/Second Opinions
    We provide independent advice to shareholders, promoters and boards of directors to assess reasonableness and fairness of the price and terms of a transaction, as required by regulatory authorities, for transaction negotiations and in related party transactions

 

  • Joint Venture (JV) Valuations
    We evaluate JV relationships and advise our clients on their JV entry and exit assessments. We also assist our clients in determining contributions of the JV partners, whether in the form of cash or intangibles

 

  • Restructuring/Re-organization
    We assist our clients in the re-organisation of their group structure by evaluating and analyzing their core and non-core assets. Our team performs the valuation analysis and assists boards of directors, shareholders and promoters in determining the arms-length price for the related party transactions. We provide detailed analysis in our reports which are self explanatory and defendable with tax and regulatory authorities
  • Intangible Asset Valuations

    We value and apprize intellectual property assets like patents, copyrights, trademarks, trade names or brands, research and development assets, products in R&D stages, etc. We review license and franchise agreements from a valuation perspective. We also value and evaluate intangible assets like contractual and non-contractual customer relationships, core deposit intangibles, customer lists and non-compete agreements.

Financial Reporting Valuations

 

Our valuation services for the purpose of financial reporting include providing accounting and audit support to our clients.  We assist boards of directors in evaluating, identifying and valuing intangibles pre and post acquisitions and carry out purchase price allocations for US GAAP and IFRS.  We carry out annual impairment reviews under US GAAP, IFRS and Indian GAAP.  Our team also assists private equity and venture capital funds in determining fair valuations of their portfolio investments.

 

  • Purchase Price Allocations
    We assist our clients in evaluating, identifying and valuing intangibles for the purpose of purchase price allocations (PPA) and also advise clients in understanding accounting impacts before deal execution by carrying out pre-deal PPAs.  We provide accounting and audit support to our clients by closely working with their auditors.  While carrying out the PPA, we also highlight issues around potential and subsequent goodwill impairment

 

  • Impairment testing
    We assist clients in reviewing annual goodwill impairment by valuing each reporting unit and applying the two step process involving evaluation of indication of impairment and quantification of the amount of impairment, if any.  We also provide accounting and audit support to our clients by closely working with their auditors
     
  • Portfolio Valuations                                
    We assist private equity and venture capital funds by establishing and determining the fair value of their unquoted investment portfolios which can facilitate the making of strategic decisions as well as for accounting and audit purposes. 

Regulatory Valuations

Our Valuation Services team identifies and supports arms-length values for tax planning.  We assist clients in carrying out FEMA and ESOP-related valuations.  We also provide litigation/arbitration support to our clients from valuations perspective.  Our detailed reports are self explanatory and defendable with any regulatory authorities.

 

  • RBI/FEMA Valuations
    We assist and support boards of directors and shareholders in closing transactions and remitting the final purchase consideration by carrying out valuation analysis required by RBI under FEMA regulations 

     

  • Tax Planning Support
    Our team assists and supports the tax teams while they plan corporate re-organization for tax planning purposes 

     

  • ESOP Valuations
    We assist boards of directors in determining arms-length strike price for employee stock option plans and also carry out the valuation of options as on date on which the options were granted

     

  • Litigation Support
    We support clients in litigation or arbitration matters.  Providing expert witness and assisting in adjudication over disputes in valuations is an area where we have extensive experience.  We also provide fairness opinions and negotiate on behalf of clients in internal disputes between groups of shareholders

     

 

KPMG has the scale to help meet your valuation challenges. There is an international network, multi-disciplinary functional resources, deep industry knowledge and a dedicated valuation practice that can make a big difference in meeting compliance requirements and taking advantage of acquisition opportunities whenever and wherever they arise.

 

In India, KPMG’s Valuation Services is a part of our Corporate Finance efforts, which has domain and product knowledge in providing and assisting clients at the various stages of a transaction. From pre-acquisition to exit and from acquisition to post-acquisition, our team has the experience and commitment necessary to provide practical and timely valuation results.