HMW Capital’s Corporate Finance team has in-depth expertise in valuing companies, assets and large scale projects
Our expertise and experience in performing complex valuations is a core competency of our corporate finance advisory service. Whether it is an equity share valuation for a company acquisition, or to support your decision to divest ownership, an IPO, or whether its valuation of intangible assets, hybrid securities, an impairment valuation, or maybe to support the investment case for large infrastructure projects.
Our Valuation Service includes:
- Independent Indicative valuation to determine the enterprise value and equity value of your company.
- Pre-bid valuation and analysis to determine the offer price for shares of a company you are targeting, or to realistically assess the worth of your own company prior to entering into a sale process.We also determine the value of equity when issuing new shares to raise capital.
- Post-transaction valuation and analysis including determining the value of the Company and your shares after an investment has taken place, whether due to outside debt financing and/or a capital injection from new equity investors.
- Independent Expert Reports (IERs) are typically required by the Corporations Act or ASX Listing Rules to inform and evaluate the fairness and reasonableness, providing objective information about the transaction, relied on as a measure of shareholder protection.
- Purchase Price Allocation used for goodwill accounting where an acquirer of a company appraises the fair value of the written-up assets and liabilities being purchased and the resulting goodwill based on the purchase price.
- Intangible Asset Valuation including brands, goodwill and intellectual property rights.
- Impairment testing of all tangible and intangible assets, ensuring assets are carried at no more than their recoverable amounts.
- Employee Share Option Plans providing valuations using Black-Scholes and Hoadley valuation tools and based on volatility, the underlying share price, time, the exercise price, dividend yield and risk free rate.
- Options and other Derivatives valuation based on using Black-Scholes and Hoadley valuation tools and the determinants of the type of option, the value of the underlying asset, implied volatility, dividends paid, strike price, time to expiration of the option, the risk free interest rate. We also use binomial model valuation methods if appropriate.
- Tax Consolidations when the cost setting process requires you to determine the allocable cost amount you allocate to the underlying assets on proportional market values.
- Infrastructure Valuation including regulated and unregulated assets typically using a Discounted Cash Flow (DCF) valuation methodology or a multiples based approach.
- Restructuring providing valuation advice for administrators.
- Valuation Reviews provide an expert opinion on the accuracy and correctness of company valuations provided.
Depending on each individual circumstance, whether due to a regulatory requirement or based on our ability to access reliable information, we select the most approach valuation methodology and then use an alternative method to provide a cross-check to get a more accurate valuation range, to provide a fair value you can rely on.
- Market Approach – involving observation of comparable businesses and their implied value based on their trading performance or precedent transactions where an implied value can be derived. HMW Capital has access to a global market intelligence platform and database to get up-to-date comparative data of listed and unlisted companies.
- Income Approach – includes valuing companies based on either a capitalisation of future maintainable earnings using comparative and adjusted implied multiples to earnings or Discount Cash Flow methodology which takes the cash flow projected into the future and applies a discount to bring it back to the current value.
A DCF valuation takes into account the cost of equity and cost of debt to calculate the discount factor. This methodology takes into account a range of factors to assess the risk and ultimately the worth of the Company.
- Adjusted Net Asset Approach – to determine a fair market or present value of the asset net of liabilities.