Business Valuation Advisory

Business Valuation: Hong Kong and China

Business Valuation

Business Valuation: Hong Kong and China

Our Business Valuation services include carefully documented valuation methodologies and procedures with clear business value conclusion helping your M&A or investment decision making. Please click here for more details on our Business Valuation Service.

Business Valuation is our core expertise:

  • Business Valuation experts with global qualifications such as CFA, CPA, CPV, FRM and MRICS 
  • Strong track record of 800+ clients on our Business Valuation service
  • Over 10 years in the market with extensive Hong Kong & China knowhow on Business Valuation

Business Valuation Advisory

AVISTA provides a full range of Businesss Valuation Advisory services for various purposes, including M&A transactions, financial reporting, stock exchange listing rules compliance, tax planning and internal reference. Our Business Valuation Advisory services cover areas including but not limited to business valuation, real estate, plant & equipment, financial instruments, biological assets, mining assets and intellectual properties.

How to Value a Company? A Quick Guide on Business Valuation

Business Valuation is a process to estimate the fair value of a company’s business, including its assets and liabilities, where a Business Valuation specialist takes consideration of a wide range of factors ranging from macroeconomic conditions to industry environment, from the business model of a company to its financial performance.   Business Valuation plays a key role in strategic planning and business decision-making in various contexts such as pre-IPO financing and group restructuring. The company’s management, with the aid of Business Valuation, will be able to obtain a reliable quantitative assessment in relation to the company’s worth and business potential. There are numerous needs and requirements the company needs to take into account across different stages of company development.   The Needs of Business Valuation   Along the road of a company being a start-up to a publicly listed company, Business Valuation provides a means and well-rounded analysis to the company’s management for financial information disclosure and decision-making.     * Corporate Fundraising * Business Valuation assesses the intrinsic value of a company on which the negotiation between the company’s management and the potential investors is based for the details of the term sheet, such as the form of investment, investment amount, protective provisions, etc. * Group Restructuring * Business Valuation provides an assisting tool for the company that may consider corporate restructuring to streamline its structure and businesses for public investment to ensure a fair and reasonable transaction price and terms in relevant transactions during the process of restructuring. * Share-based Compensation Scheme * Business Valuation quantifies the relevant expenses of employee share options (“ ESO”) that are increasingly adopted before going public to align the interests between the employees and shareholders for talents motivation in hopes of business development, by which the company’s management can utilise sensitivity analysis to assess the impacts of ESO in advance for better budgeting. * Financial Reporting * Business Valuation supports the company to meet the requirements of financial information disclosure incorporated into the Listing Documents or annual reports, at the time of being an IPO applicant or being a publicly listed company. * Major Transaction Disclosure * Business Valuation helps the company present the fair value of the assets or business in a major transaction of which the company is required to disclose certain information in the announcement, including but not limited to the aggregate value and determination basis of the consideration, as well as the value of the subject assets in the transaction. Types of Valuation Approach * Income Approach * In Business Valuation, the fundamental method for income approach valuation is the Discounted Cash Flow (“DCF”) method. Under the DCF method, the value depends on the present value of future free cash flow of a company. The future cash flow is discounted at the market-derived rate of return appropriate for the risks and hazards of investing in a similar business. * Market Approach * The market approach provides an indication of value by comparing the subject asset to similar assets that have been sold in the market, with appropriate adjustments for the differences between the subject asset and the assets that are considered to be comparable to the subject asset. In this process of Business Valuation, there are two common methods under the market approach, namely the Comparable Transaction Method or the Comparable Company Method. * Asset-based Approach * The asset-based approach considers the cost of re-manufacturing or replacing the assets to new based on the prevailing market price of similar assets, taking into account the past and current maintenance policies and refurbishment records, and deducting the accumulated depreciation caused by the condition, usage, age, wear or obsolescence (structural, functional or economic). This Business Valuation approach will be adopted only when the income approach and market approach are not applicable, such as under a liquidation scenario, as it does not reveal the future economic benefit of a company. AVISTA Business Valuation Advisory   Business Valuation is of vital importance to strategic decision-making and financial information disclosure. With our extensive financial knowledge and experience, AVISTA Business Valuation team can provide a fair and reliable quantitative assessment on your growing company’s worth and business potential.   Explore our Business Valuation services now.  

How to Value a Company? A Quick Guide on Business Valuation

Business Valuation

Business Valuation Business Valuation: Hong Kong and China What is the Next Step for Your Growing Business and How Can We Help on Your Business Valuation? Considering a deal?  * Purchase Price Allocation (PPA) Business Valuation * Financial Instruments Valuation  Ready for going public? * Business Valuation for IPO & Circular Disclosure Planning for expansion? * Business Valuation for Capital Financing Making investment decisions? * Venture Capital and Private Equity Portfolio Valuation * Transfer of Intellectual Property Fulfilling the financial reporting requirements ? * Share-based Payment Valuation * Goodwill and Assets Impairment Assessment * Expected Credit Losses (ECL) Assessment * Valuation for Tax Purpose Other Business Valuation services: * Mining Valuation * Biological Assets Valuation * Service Concession Arrangement Analysis   What Type of Assets Can We Value?   Equity Investment * Equity and Debt Interests Financial Instruments * E.g. Convertible Bonds and Notes, Preference Shares, Warrants, Forwards, Call and Put Options and Embedded Derivatives, etc. Intangible Assets * E.g. Trademark and Brand Name, Customer Relationship, Technology, In-progress R&D, Patent, Intellectual Property, Copyright, Franchise Agreement, Favorable Lease and Non-compete Agreement, etc. Tangible Assets * Biological Assets and Mine * Real Estate, Machinery and Equipment and Inventory etc. (see our Property Valuation services.)   Explore our full suite of Business Valuation Services. Business Valuation Services Our well-developed Business Valuation services include carefully documented valuation methodologies and procedures with clear business value conclusion helping your M&A or investment decision making. Business Valuation services:  why choose AVISTA Business Valuation * Business valuation experts with global qualifications such as CFA, CPA, CPV, FRM, MRICS  * Our strong track record of 800+ clients on our Business Valuation service * Over 10 years in the market on Business Valuation: Hong Kong & China & APAC region   Contact us for your next Business Valuation project.  

Business Valuation

Valuation for Circular Disclosure

Mergers and Acquisition (“M&A”) is one of the common ways for companies to achieve additional growth by creating synergies, gaining access to unique capabilities and etc. Whether the M&A adds value to the firm depends fundamentally on a proper evaluation of the transactions. Increasing concerns on the fairness of the transactions are also observed among the public. Regulators are imposing stricter rules and disclosure requirements on transactions.   Listed companies are required to disclose details of the transaction, in particular the basis upon which the consideration was determined, if it is classified as a share transaction, disclosable transaction, major transaction, very substantial disposal/acquisition or reverse takeover as soon as the transaction has been finalized under Chapter 14 of the Main Board Listing Rules of the Stock Exchange of Hong Kong (“HKEx”) and Chapter 19 of the GEM Listing Rules of HKEx. The Securities and Futures Commission has issued guidance in 2017, with a further statement issued in July 2019, on use of valuations in corporation transactions to the directors, emphasizing the need for determining a fair and reasonable consideration of the transactions.   We have extensive experience in providing business valuation services ranging from U.S. and H.K. listed companies, pre-IPO candidates and small and medium sized enterprises. Regardless of the complexity of the deal structure, our dedicated team will assist you in selecting the most appropriate business valuation techniques to smoothen the work progress.

Valuation for Circular Disclosure

Business Valuation Firm in Hong Kong

As a leading professional business valuation firm in Hong Kong, AVISTA has a strong presence in the Asia-Pacific Region and an international reach of handling outbound projects around the globe. We have assisted our clients in outbound projects in over 30 countries so far.

Business Valuation Company Selection

AVISTA’s IT capabilities and advanced data analytics assist our clients in arriving at sound and informed corporate decisions. Different from conventional Business Valuation companies, we heavily invest in world’s leading data analytics tools and market intelligence platforms to ensure the validity and objectiveness of market data. We are also dedicated in developing our in-house built database and web applications to further enhance our analytic capability, which in turn ensure a high valuation accuracy and an outstanding service quality.

 

Contact us for your next Business Valuation project.

 

Meet Our People

VINCENT PANG

VINCENT PANG

Managing Director

AVISTA GROUP

vincent.pang@avaval.com

HAILEY JIN

HAILEY JIN

Director

VALUATION ADVISORY

hailey.jin@avaval.com

IVAN LUI

IVAN LUI

Director

VALUATION ADVISORY

ivan.lui@avaval.com

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