Our services in valuation is further divided into two, namely Business Modelling and Valuation, and Accounting Valuation.
Business Modelling and Valuation
Whether you are expanding strategically into Indonesia through acquisition, refocusing core objectives by divesting certain business lines, or simply seeking ways to increase shareholder value, Helios Capital is ready to assist you in preparing or reviewing a business model.
The advantage of our integrated approach to M&A is that we are able to establish the link between the model and the findings of our structuring and due diligence work. As a result, we develop accurate scenario plans and sensitivity analysis based on the most accurate and up-to-date information available. Our due diligence work can be used to review the value drivers and assumptions of the model. For example, additional costs arising from tax and welfare compliance post-investment are often significant and should be factored in. We can help you quantify and model synergies that may be available as a result of the deal. We can also supply information on comparable precedent transactions to help determine the value.
Helios Capital has a team of dedicated professionals specializing in valuations with a wide range of expertise and experience who can perform independent valuations of all businesses, divisions of businesses or infrastructure projects, including share valuations of private and public companies, and the valuation of tangible and intangible assets such as brands and trademarks.
Accounting Valuation
The introduction of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) resulted in significant changes in the way that accounts must be prepared and presented. Hence, it will require a wider range of assets to be evaluated on an annual basis. The changes are as follows:
- IFRS changes the accounting treatment for acquisitions. All assets (both tangible and intangible) resulting from a merger or acquisition will have to be included in the balance sheet of the acquirer at their current market value and are depreciated over their useful economic life.
- Goodwill is now tested for impairment annually, and is marked down according to the conclusions of that annual process.
- A range of financial assets now also need to be valued under IAS, including financial instruments and insurance contracts. IFRS requires share options to be valued as they are charged against the profit and loss account on an annual basis.
These considerable changes call for valuation services that are provided by a firm that understands the specific accounting implications and the wider commercial context in which those accounting valuations will apply. Helios Capital’s valuation team draws on their technical and financial specialization and our ability to access accounting specialists in order to deliver integrated advice to our clients.