No matter the size or complexity of your deal, we assist you to achieve the best value with creative, practical and value-added solutions.
Our focused and time-sensitive valuation approach provides you with the competitive edge you need in challenging and ever-changing business environment in China, throughout Asia Pacific and around the world. As an integrated team, CAA delivers to our clients cutting-edge and seamless incremental services. We work closely with our industry and other specialist groups to bring the right resources to every case.
Mergers & Acquisitions (M & A) Mergers and acquisitions result in the economic and financial consolidation of two entities. Accordingly, M & A transactions can introduce complex issues, including account and financial reporting for common control transactions. In this issue, we undertake valuations of properties, plant and machinery, and business assets. Our valuation service can enhance financial statements’ quality, transparency and relevance. In addition, this is the trend that aligns with global accounting convergence and can be reflected in current International Financial Report Standards (IFRS) and the US Generally Accepted Accounting Principles (US GAAP).
Real Estate Valuation/Due Diligence
Real estate is a major component of many companies’ assets. The property interests owned by the issuer are subject to different valuation and disclosure requirements under the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.
Our services comprise property valuations and /or due diligence to mergers and acquirers with existing or potential property interests in the real estate sector. For example, we perform the Purchase Price Allocation in which the acquirer recognizes the properties at their fair values.
Plant & Machinery Valuation/Due Diligence
Plant, machinery and equipment often make up a significant part of a company’s overall investment. For manufacturing companies, this type of asset frequently exceeds the value of real estate assets. Hence, machinery valuation is often required for capital raising activities such as project finance, merger and acquisition, joint venture and insurance reference, etc.
We provide the industry overview service in terms of the market analysis and performance risks of the industry that will enable our clients to be fully informed before they make any buy-ins and buy-outs decisions and to save costs.
Issuers frequently offer their employees share options to motivate staff upon listing. In such cases, a valuation is required to reflect the offering’s fair value in the accounts. Issuers may sometimes tender convertible bonds to get funding prior to listing; such would also require fair value assessment for financial reporting.
We can assist our investor clients in their investment screening and due diligence process. An example of a service that we can provide at this stage is a technical review of a mining project, in which we evaluate previous explorations work, estimate the amount of mineral resources present and assess the potential economic value of the project based on the most relevant valuation methodologies. Working along with mining experts, we can then help both investors and mining companies to conduct a feasibility study of a project and prepare an independent technical report for capital raising purposes. If the client decides to raise capital through the stock markets, we can prepare a Competent Person Report and Valuation Report as a Competent Evaluator that comply with relevant listing rules.
Biological assets, like forestry and livestock, have always been among the most popular asset classes for global investors. Due to the complexity and diversification of every species of biological assets, it is a challenging exercise for potential investors to evaluate their investment opportunities. CAA comprises a group of independent professional valuers with extensive experience and expertise in relation to biological assets valuation. Our team consists of professional valuers and agricultural experts who work seamlessly together in a wide array of biological assets to ensure the reliability and fairness of our valuation services. The team also provides quality consultancy services in the management and operation of pasture, farmlands, and orchards.
Furthermore, according to the International Accounting Standard 41 – Agriculture (“IAS 41”), biological assets (defined as living animals and plants) are required to be recorded as fair value less cost to sell on initial recognition and each reporting date; the gains or losses arising on initial or subsequent measurement of biological assets shall be included in profit and loss for the period in which it arises. Therefore, biological assets valuation may have material impact to a company’s financial statement.
Whether it is acquisition financing, project financing, bridge loan or mortgages, for establishing collateral value or validating investment, often the lender will need to obtain independent business valuation.
SASAC Approval Reference
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