We support market participants in the financial services sector by offering our contemporary interdisciplinary expertise when it comes to all forms of valuation, assuming the role of advisor, neutral expert or arbitrator. In addition to the traditional income approach and the market approach to valuation using 'multiples', we also have several special methods available, including the valuation of stock options. The BDO Financial Services team specializes in assessing successful or non-performing loans (portfolios and individual tickets). M&A transactions will often be the reason why our clients need to value their company, financial assets, portfolios or intangible assets.

Appraisals during M&A transactions

When undertaking a transaction (purchase, sale, merger of companies and units of a company or listing), it will often be necessary to take into account fair value, the maximum price to be paid or the minimum amount to be received. At the heart of all valuations is a well-founded, future-oriented analysis of everything being valued. When we conduct analyses, we are primarily concerned with identifying factors that are of particular importance to value and as such will have an impact on the value and/or price to be paid (buy-side) or received (sell side).

Valuation according to legal or contractual obligations

Corporate and tax law requirements can also trigger a request for a (business) valuation. Examples of scenarios where this could be the case include crowding out minority shareholders, corporate restructuring or a change in legal form (eg Societas Europaea). Knowing all the specific material and methodological requirements for this type of valuation is essential if a reliable valuation is to be made.

Fair Opinion: A Contribution to Corporate Governance

In preparing the fairness opinion, the transaction price that has been agreed or is in the process of being negotiated is evaluated to ensure that it is financially reasonable. This process provides a high level of security for the bodies in the company that is responsible for concluding the transaction. It has become common practice for a fairness opinion to be obtained for corporate and portfolio transactions, and is even a legal requirement in some cases. However, it is something that can be taken into account when making any business decisions that will have a significant impact on the property, financial and income status of the company.

PPA and impairment tests

Under the acquisition method, the acquiring company recognizes individual assets and liabilities (including independently created intangible assets and contingent liabilities) of the target company in its consolidated financial statements. All assets and liabilities must be valued at fair value on the date of acquisition. BDO's team of experts has significant experience in purchase price allocation (PPA) and impairment tests and International Financial Reporting Standards (IFRS).

Valuation of intangible assets

The BDO Financial Services team can also value any intangible assets, such as trademarks, customer bases and technologies, in a separate process from the PPA. This type of appraisal will often be required if transactions involving such assets are being contemplated or have already taken place.