BDO Corporate Finance is accredited by the Johannesburg Stock Exchange (JSE) and the Takeover Regulation Panel (TRP) as an independent valuation expert. We deliver a broad range of valuation services across all industries: the members of our team having prior investment banking or specialist mergers and acquisitions experience.

Business valuation

In each situation, our valuation experts develop a thorough understanding of the business to build a detailed picture of its underlying drivers of value, at both a macro and micro level. We use this knowledge to guide our valuation modelling in the context of the available market evidence.

We use commonly accepted valuation methods – typically market multiples and DCF – with a critical part of the process being corroboration of results derived from one method against those derived from another. The end goal is to produce a robust valuation that stands up to external scrutiny.

Some of the most common reasons clients need a valuation include mergers and acquisitions, transactions, expert determinations, shareholder disputes, investment valuations, corporate restructurings, fairness opinions (JSE and Companies Act), solvency opinions, litigation/expert witness opinions and tax matters (for example, Capital Gains Tax (CGT), Estate Duty and Donations Tax).

We work with all sizes of businesses, from large multinational corporations through to owner-managed businesses.

Financial reporting valuation

BDO’s valuations team has exceptional technical knowledge and extensive experience in providing independent valuations for financial reporting purposes. Fair value financial reporting, in particular, is the new reality, as most countries in the world are converging their accounting standards with existing international financial reporting standards (IFRS). Whatever your fair value challenge, we have the expertise you need in the following areas:

Purchase price allocation (PPA) and Intangible asset valuation: Our combined decades of experience with the PPA process mean that you will receive the most knowledgeable and efficient valuation advice – from the identification and valuation of intangible assets separable from goodwill, through to the fair value of inventory, deferred revenue and purchase considerations in terms of IFRS 3
Share-based payments: We help clients estimate the fair value of employee award and incentive grants for financial reporting purposes under IFRS 2. We are highly adept at modelling even the most complex of share schemes, so whether it requires Black-Scholes or Monte Carlo simulation, we have the tools to assist
Impairment reviews: Our financial reporting valuation team assist clients with impairment reviews under IAS 36. Our services range from a fully outsourced impairment review, comprising value in use and/or fair value calculations, through to advice on components of the calculations, such as an appropriate discount rate.