Business Valuation

Enterprise value/Equity valuation

Appraisal of assets and equity of Chinese and foreign enterprises in whole or in part for the purposes of investment and establishment of companies, formation of joint-stock companies to be listed and public offering of shares, transfer of equity, mergers, acquisitions or demergers of enterprises, and major reorganization of listed companies. Also includes appraisal of classes of preferred shares of non-identical nature.

Apportionment of acquisition consideration

Identify each of the assets and liabilities of the acquired business and assess their fair value, and allocate the purchase price based on the fair value of the identifiable assets (including all types of identifiable intra- and extra-accountable intangible assets), liabilities and contingent liabilities of the purchased party acquired in the merger, and derive goodwill by allocating the difference. For consolidated financial statement purposes.

Impairment testing

Delineate and recognize the asset group or combination of asset groups related to goodwill, and recognize the corresponding impairment loss after performing the impairment test for goodwill formed in a business combination. In addition to goodwill impairment testing, it also includes intangible asset and tangible asset impairment testing.

Intangible assets valuation

Appraisal of intangible assets such as patented technologies, know-how, trademarks, computer software, copyrights, franchises, sales channels, contracts, customer relationships, etc., for the purposes of share purchase, asset transfer, licensing and franchising.

Financial derivatives valuation

Common financial derivatives include share options, warrants, convertible bonds, futures and swaps, financial/mortgage guarantees, etc., as well as credit impairment losses on financial assets (Expected Credit Loss (ECL)), the corresponding assessment of which is an essential part of the financial reporting preparation process.

Alternative asset valuation

Appraisals of mineral resources, oil and gas reserves, and biological assets held by plantation and farming enterprises, providing appraisal reports that comply with specific guidelines for initial public offerings, mergers and acquisitions, and internal reference purposes.

Asset package/Portfolio valuation

Valuation of asset packages/portfolios based on internal and accounting references, mainly including common equity, fixed income-like/trust products, fund products, asset packages/equity investments in real estate/real estate project companies, convertible bonds, preferred shares, and items with derivative clauses.

Employee option valuation

Companies often grant share options to their employees as an incentive to them and are required to carry out a valuation to reflect the fair value of these options in their accounts.