Market value is becoming a key issue for making business decisions as well as for managing financial reporting and tax risks. It is a sensitive area often in the focus of authorities, management, and any stakeholders of your company.
The science of valuation is controversial and, at times, subjective. The key to a successful valuation is an adviser who is knowledgeable, independent and objective and, at the same time, listens to your concerns. The experts at Mazars provide objective and independent valuations. We analyse the complex factors that impact the value of a complete business or a branch of business to produce a fair and considered valuation. Depending on your needs, our valuation service often combines the skills and experience of many disciplines within the firm.
Accounting and tax support
Our customers are increasingly confronted with accounting, tax, and regulatory valuation requirements. Both international and local rules are moving towards the application of market value, therefore a smooth and successful closing of the financial statements needs the application of several valuation methods such as impairment tests, investment and equity valuations, or goodwill accounting. For tax compliance purposes and confirming the principle of arm’s-length value, the determination of the market value is practically indispensable especially in the light of the rigorous transfer pricing investigations of the tax authorities.
Our services include
- Impairment reviews and related IFRS advisory services
- Preparation of impairment test documentation
- Determining market value of equity for investment valuations according to Hungarian Accounting Law
- Purchase Price Allocation (PPA) and assistance in goodwill accounting based on IFRS 3
- Market value determination for Transfer Pricing compliance purposes and preparation of related documentation
- Advisory services in company transformations performed on market value
Investment and transaction valuation
To be aware of the market value of a business unit, or a whole company is of key importance in any transaction decisions whether it is a sale, company transformation, activity selection, business restructuring or a raising capital. Our team of experts is available during the review of the company’s own valuation and for preparing an independent valuation, in multiple fields related to valuation work.
Our services include
- Company and business unit valuation
- Valuation of business unit selection transactions
- Assistance and advisory in building up of discounted cash-flow models (DCF)
- Reviewing valuation models
- Overviewing business modelling
- Investment portfolio valuation
During the analysis of historic data and the current operation of the company, we identify the key factors driving the value of the business and, starting out from this data and by using the future business plan, we will model the projected performance.
We work together with our customers
- We apply a systematic valuation approach
- We understand the business and sector – its prospects and its markets
- We identify the factors influencing the value
- We analyse past operational performances and forecast future financial results and free cash flows
- We analyse projected CAPEX, R&D and working capital needs
- We apply discount rates, company and transaction multiples
- We test the accuracy and sensitivity of valuation and business models
- We provide comprehensive valuation reports and deliverables acceptable for authorities and stakeholders