Valuation and financial modeling

When is a valuation carried out?

The valuation of an enterprise and its organized part or assets (including trademarks and other intangible assets) is often required when strategic decisions are made or transactions performed. It is often determined by enterprise-specific factors and takes place, for instance, when internal restructuring is carried out or when decisions regarding new investments, disposal of assets or separate business units are made.

The need for valuation is also determined by external factors and may result from, for instance, the accounting standards adopted by an enterprise which require the valuation of intangible assets (such as the customer base or trademarks) to be carried out following the transaction (as part of the "purchase price allocation").

How can we be of assistance?

Crido Taxand carries out independent valuations of enterprises, their organised parts (OPE), lost profits and intangible assets for different purposes and needs, including:

  • Acquisition or disposal of enterprises – independent valuation supports the decision-making process regarding the acquisition or disposal of enterprises or part of their operating activities;
  • Tax purposes – independent valuation of enterprises, OPE or intangible assets is in many cases necessary in order to demonstrate that the transaction within the capital group was carried out on arm’s length basis;
  • Financial Reporting – growth of an enterprise through acquisition requires the value of the acquired enterprises as well as performed transactions to be recognised in the financial statements – in such cases, it is necessary to carry out the valuation of intangible assets for the purpose of purchase price allocation, as well as impairment testing of assets recognized in the balance sheet following the purchase price allocation;
  • Litigation support – independent valuation of lost profits or lost business value is often an essential part of litigated files.

When is financial modeling carried out?

Financial modeling is a key element of the majority of projects implemented under the project finance model, both during the investment decision-making process, as well as its financial structuring (on commercial or preferential terms – subsidies, preferential loans or tax exemptions). In addition, a professional financial model is often required for tax purposes, transfer pricing and PPP projects.

How can we be of assistance?

Crido Taxand prepares financial models in order to, among others, obtain commercial and public financing. We develop flexible scenario models which are required in the strategic decision-making processes regarding investments, investment financing or to perform enterprise valuation.

As part of our service, we carry out:

  • Financing models aimed at obtaining financing from different sources;
  • Financing models for projects carried out within the framework combining the public and private sector, including PPP;
  • Financing models for the purpose of valuation in M&A processes;
  • Financial forecasts of new investments;
  • Verification of financial models.

Our team members have both technical and financial experience and expertise in the field of commercial and public financing sources, which allows them to analyze the projects from a broad perspective.

Ewelina Stamblewska-Urbaniak

Partner
Tax Advisory Services

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Szymon Żółciński

Partner
European Advisory Services

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