United Kingdom

Valuations 

KPMG Valuation Services is a global network with more than 1,200 dedicated valuation professionals in nearly 50 countries. Our global network allows us to mobilise international teams, who have a sense of regional market conditions and can consider local issues such as taxes and market regulations, in a timely manner.

 

Our Valuation Service team has extensive experience in providing valuation services in relation to transactions, reorganisations, disputes, litigations, financial reporting, restructurings and funds.

 

We also work closely with KPMG's specialist Joint Ventures team, especially around market entry, JV set-up and exit planning and implementation. Read more

What's on your mind?

 

We can help in various circumstances. In particular, when clients:

 

  • Are planning a major acquisition, divestment or internal reorganisation
  • Need advice to determine the right price to pay or accept for a business
  • Undertake a transaction which will require a public document to satisfy regulatory requirements
  • Are issuing shares or making a placement of shares
  • Want supporting evidence to help raise equity or debt finance
  • Want to resolve a shareholder or joint venture dispute
  • Have a minority interest issue, e.g. departure of a director
  • Have a number of unquoted investment portfolios requiring valuation and monitoring of values
  • Have a share compensation scheme based on unquoted shares
  • Need an expert witness to determine a valuation
  • Need help with the valuation of tangible assets and intangible assets such as trademarks and brand names for financial reporting need help with impairment testing

 

How we can help

 

We assist our clients in the following:

 

  • Independent board advice - to help determine the right price to pay or accept for a business
  • Investment and transactional advice - to analyse investment opportunities, sometimes as an integral part of the due diligence exercise
  • Fairness opinions - advice on the fairness of the price and terms of a transaction, as required by regulatory authorities, in public takeover bids, demergers, squeeze-outs and related party transactions
  • Accounting support - determining the value of identifiable acquired intangible assets such as trademarks, brands, technology, and customer relationships, and tangible assets such as machinery, equipment, and real estate as well as impairment reviews
  • Finance support - in relation to equity raising or debt financing
  • Internal reorganisation support - identify and support arm’s-length value analysis for internal planning purposes
  • Funds - the valuation of illiquid assets, debt securities, derivatives, liabilities and asset retirement obligations within a fund/investment
  • Restructuring - valuation advice and disposal options review in connection with an Independent Business Review ("IBR") and independent valuation opinions for the benefit of an administrator (or similarly acting party)
  • Venture capital and holding company support - establishing the value of unquoted investment portfolios can help venture capitalists and holding companies in their strategic investment decisions
  • Litigation support - supporting litigation or arbitration, particularly expert witness and adjudication work in valuation disputes

 

Why KPMG?

KPMG offer objective, professional valuation advice, independent from the interested parties involved.

 

Our experienced team of valuation practitioners have expertise across different types of valuations, working with large multinationals, financial services conglomerates, listed corporations, private equity firms and government bodies, as well as privately held and developing companies.

 

We have the ability to leverage the global KPMG network to integrate relevant industry expertise and local knowledge in valuation work.

 

Case Study - Quarterly valuations of investments for a global fund of a major US investment bank

We provide independent oversight of the annual and quarterly valuations of the fund, working closely with the fund manager, the fund administrator and the fund auditor.


Fund Set-Up (2005)

A major US Investment Bank wished to appoint outside valuation experts to provide ongoing annual and quarterly independent valuation reviews for a new special situations fund:

  • We assisted in drafting the Valuation Policies and Procedures (VP&P) for the fund incorporating our experience and requirements under best practice guidelines
  • We provided an updated draft of the VP&P in January 2010 to reflect the fundamental changes in the capital markets over the preceding two-year period


On-going involvement

KPMG was appointed in an ongoing role as independent valuation expert to oversee the annual and quarterly valuation function and offer ‘negative assurance’ opinions on the underlying investments to the fund manager. This involves:

  • Preparation and presentation of annual and quarterly valuation reviews of all investments to the Valuation Committee of the Fund:

          - Review of quarterly valuation papers presented by asset managers
          - Detailed discussions with individual asset managers on approach,
            methodology and key assumptions
          - Consultations with KPMG Real Estate colleagues in appropriate geographies
          - Preparation of a summary report setting out our views and conclusions

 

Deliverable

We provide the Fund manager with a valuation opinion letter providing assurance on their valuation.


The Big 4 auditors of this fund are comfortable with the work we performed and we have an effective working relationship with them.


The appointment highlights our expertise in reviewing and valuing large funds and the underlying investments on an on-going basis.

 

Contact

Heather StevensonHeather Gray
Partner

 

020 7311 8578
heather.gray@kpmg.co.uk

 


Doug McPheeDoug McPhee


Partner

 

020 7311 8524
doug.mcphee@kpmg.co.uk


Jonathan WhiteJonathan White


Partner

 

020 7311 8977

jonathan.rm.white@kpmg.co.uk