Business & Assets Valuation
Assets and Business Valuation in Singapore and Overseas, Purchase Price Allocation (IFRS 3), Acquisition and Disposal of Shares (IFRS 3), Impairment Testing (IAS 36), Specialist Fair Value Measurement (IFRS 13). Tax, Litigation, Estate and Matrimonial Disputes.
Our valuation expertise cover the following areas:
- Shareholders’ disputes including the drafting of buy/sell agreements
- Acquisition/disposal of shareholdings or equity stakes
- Corporate restructuring/Business reorganization
- Valuation of Interested Person Transactions under SGX rules
- Purchase Price Allocation services, impairment testing of goodwill for financial reporting purposes
- Mergers and acquisitions, divestments, Management and leveraged buyouts
- Valuation under Section 19B, Income Tax Act for intangible assets.
- Tax disputes with the tax authorities
- Valuation of deceased’s estate.
- Litigation support, acting as an expert witness
- Valuation of matrimonial assets for divorce proceedings;
- Valuation of startups, emerging technologies like AI, cryptocurrency etc
- Valuation of complex financial instruments like convertible loans, preference shares and put/call options.
- Valuation of goodwill arising from business combinations
- Assessing damages from breach of contract, loss of profits/income
- Assessing damages from copyright/patent infringement etc.
We have performed business and asset based company valuation services across diverse industries and jurisdictions. Our clients are listed companies, MNE and SME from the following sectors in Singapore and overseas:
- Food and beverages, restaurants and hawkers.
- FMCG like furniture, consumer products
- Venture capital, private equity and hedge funds
- Shipping and offshore oil and gas turnkey projects
- Entertainment, advertising, media agencies
- Technology startups
- Educational institutions like preschools, childcare centres
- Coal mining
- Agriculture and fish farming
- Construction i.e. cable engineering and precision engineering
- IT and Cloud computing services
- Professional engineering services
- Property developers
- Accommodation and hostel services
- Retail and distributor of lifestyle products and accessories
- Licensed Money lending
- Office cleaning services
- GP and dental clinics, including specialist clinics
- Wealth management companies, single/multi-family offices
Acquisition and Disposal of Shares Valuation (IFRS 3 or FRS 103)
IFRS 3 lays down the requirement for the accounting of business combinations and requires the use of fair value estimated that is derived from the Fair Value Measurement Framework for financial reporting. We assist to obtain an indicative price before developing an acquisition strategy. We can also help to perform a company valuation report should you wish to dispose of your businesses.
Fair Value Measurement (IFRS 13 or FRS 113)
Specialist valuation reviews of fair value measurements prepared by management or a third party; we offer a review of fair value measurements prepared by the firm’s valuation team; the review and signing of valuation reports; performing, supervising, mentoring, or managing fair value measurement engagements; and providing consultation and development of thought leadership and staff development on fair value measurement matters.
We provide fair value measurements for companies, intangible assets, certain liabilities, business interests, and inventory for the purpose of financial reporting. Financial statements that are issued for financial reporting purposes include, but are not limited to, financial reports issued by the following:
- Entities that are obligated to submit registration statements or filings to the SEC.
- Privately held entities that prepare and issue financial statements according to the International Financial Reporting Standards and U.S. GAAP.
- Any engagement where the individual performs services as a valuation professional.
Purchase Price Allocation (PPA) under IFRS 3 Business Combinations
International Financial reporting standards (IFRS) enforce strict guidelines for the business combinations. Purchase price allocation (PPA) serves to enhance the transparency of the activity processes and identify the true value of the assets.
Purchase price allocation (also known as “Assets and Liabilities Valuation”) is the process of assigning fair value to all major assets and liabilities of an enterprise, either following a merger or an acquisition. Assets included can be either tangible (machinery and equipment, property) or intangible (customer relationships/lists, trademarks, intellectual property, goodwill or other intangibles).
Impairment Testing (IAS 36 or FRS 36 Intangible assets)
We carry out impairment testing for listed and unlisted companies as defined under the accounting standards, which is a requirement to conduct such impairment test for its assets to see whether it has incurred impairment losses. The purpose is to ensure that the assets are not overstated.
Tangible assets Valuation
We provide expert value opinions in valuing tangible assets for business restructuring, acquisition and/or disposal of tangible assets, fair value of tangible assets for purchase price allocation (PPA) under IFRS 3 Business Combinations and more. Our services have saved asset-intensive companies millions in property taxes, and cover:
- Value property, plant, and equipment
- Determine replacement value and depreciation factors
- Quantify economic, functional, and technological obsolescence
Death Estate Valuation, Litigation, Tax & Matrimonial Disputes
If your business is caught in a legal dispute relating to business, commercial and matrimonial/family/divorce proceedings, we can provide valuation of business or shares, trial preparation and expert testimony. We also specialise in disputes relating to their personal or corporate tax matters that require valuation expertise, as well as providing litigation support as expert witnesses in Court proceedings.
Damage assessment due to personal injury or economic losses
When an individual sustains a physical injury due to the action or inaction of another person (often related to a motor vehicle), the individual may seek compensation. We can assist with the quantification of the damages. We also assist in valuing losses arising from contracts used in the construction industry, the types of losses that may arise if those contracts are breached (i.e., the types of claims which may arise), and the documents required for supporting a claim for damages.
Expert Witness or Expert Testimony Service
We provide our services by acting as expert witness and furnishing expert reports for submission to the Courts for purposes of business valuation arising from shareholders litigation or matrimonial disputes. Our fairness opinion is built on stress tested financial models and detailed documentation so that we have a strong basis to defend our expert reports. We are also ready to testify in court to help our clients defend their case. Also, we assist to resolve disputes during mediation and arbitration proceedings based on expert evidence to assist in forensic investigation into commercial fraud and financial irregularities.
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Protect your assets during
Value your business for
Our achievements include:-
Best Business Valuation Firm 2022 at APAC Insider Singapore Business Awards
The award was presented to Max Lewis Consultants by APAC Insider, a regional publication that focuses solely on businesses in the Asia Pacific region. It honours the most creative, committed, and results-oriented individuals and companies from a region that produces more than one-third of the world’s largest corporations.
The Singapore Business Awards is one of the awards that APAC Insider hosts, which aims to recognise and promote businesses and individuals that are working relentlessly to boost the economy and help it flourish. Regardless of the size of the company, all candidates for the award were purely judged on their merit by an internal research team. The research team made its final decision based on a variety of factors, including corporate success, longevity, diversity, growth (sustainable or quick), key inventions, stakeholder input, and so on. This year, the winners of the award come from a range of sectors including interior design, finance, cybersecurity, and many more.
Best Business Valuation Consultancy Firm of the Year at Corporate LiveWire Global Awards
The award was presented to Max Lewis Consultants by Corporate LiveWire, a global platform that provides the corporate sector with the latest news and developments from around the world. This award honours the firm that has rendered the best business valuation services across multiple sectors, offering outstanding results in the corporate sector.
The Corporate LiveWire Global Awards aims to recognise the accomplishments of top business individuals and firms that have produced remarkable results, prioritised customer service, and, most importantly, used novel approaches to exhibit exceptional business performance. Each nominee was assessed independently based on how effective their processes, products, or ideas are in transforming their respective industries.
Business Valuation Services
- Independent fair valuation for a listed healthcare firm.
- Independent fair valuation of a wealth management firm.
- Independent fair valuation for a licensed moneylender.
- Independent fair valuation for office cleaning business.
- Independent fair valuation for a pre-school franchisee.
- Independent fair valuation for a Michellin star cuisine restaurant.
- Independent fair valuation for a cloud computing firm.
- Independent fair valuation for a Halal food delivery startup.
- Independent fair valuation for a Frozen food distributor.
- Independent fair valuation of a portfolio investment group.
- Independent fair valuation of hotel startup using containers.
Independent fair valuation of maid agency firm.
Independent fair valuation of an enrichment tuition centre.
Independent fair valuation of local edible oil distributor.
Independent fair valuation of a licensed plumbing contractor.
Independent fair valuation of a food caterer business.
Independent fair valuation of a robotics automation business.
Independent fair valuation of a manufacturer of wood furniture.
Independent fair valuation of a rehabilitation physiotherapy business.
Independent fair valuation of a wholesale wine and spirits business.
Independent fair valuation of a few Fintech application businesses.
Independent fair valuation of a solar renewable start-up business.
Independent fair valuation of a medical diagnostics device player.
Independent fair valuation of a listed SPAC in e-commerce.
Independent fair valuation of non-ferrous metal trading company.
Independent fair valuation of a property developer firm.
- Independent fair valuation of a ship brokerage company.
- Independent fair valuation of a car battery service company.
Valuation for Sale of Businesses
Valuation of an enrichment learning centre for sale
Valuation of three pre-schools centres for sale
Valuation of a Medical & Laser Aesthetics clinic for sale
Valuation of a cyber security business for sale
Valuation for a group of GP medical clinics for sale
Valuation of a family-owned dental clinic for sale
- Value shares awarded to a tech founder for personal taxation reporting to India IRS.
- Valuation of a training business for US IRS personal income tax reporting.
Assets Valuation Services
- Valuation of assets for a US immunotherapy MNC.
- Valuation of waste bin containers for a local SME.
- Valuation of a fleet of shipping vessels for a bunker group.
- Valuation of kitchen equipment, furnitures, fixtures, antique paintings, luxury watches, laptops under a writ of seizure.
- Valuation of items belonging to a KTV lounge.
- Valuation of an equipment for Oil and Gas industry.
- Valuation of an overseas Oil Rig platform.
- Valuation of a trading company selling medical devices.
- Valuation of eighty (80) commercial vans belonging to LPG distributor.
Acquisition Valuation Services
- Acquisition target is in orchid farming activities.
- Acquisition target in bookkeeping and secretarial services.
- Acquisition target providing financial advisory services
Matrimonial Assets Valuation Services
- Valuation of a hawker business selling Malay cuisine.
- Valuation of a cloud and IT services company.
- Valuation of a SME offering transport services.
Shareholders’ Dispute and/or Management Buy-outs
- Valuation of a large local advertising agency.
- Valuation of a medical neurology clinic.
- Valuation of a semi-conductor startup.
Purchase Price Allocation Services
Performed purchase price allocation in relation to a pre-IPO aspirant’s acquisition of an energy solutions company offering automated metering systems in factories, high rise office buildings, shopping malls, hotels and in school institutions etc. Their metering systems are used at these sites for energy management and power quality monitoring.
Estate Valuation Services
- Valuation of deceased’s estate that owned a business running
- Valuation of a wholesale trading business whose owner passed away.
- Valuation of a deceased client who owns diverse investments.
We have a team of highly qualified in-house experts:
- Chartered Valuer & Appraiser, Institute of Valuers and Appraisers, Singapore;
- International Certified Valuation Specialist, IACVA;
- Chartered Business Valuer, Canadian Institute of Chartered Business Valuators;
- Certified Valuation Analyst, National Association of Certified Valuators and Analysts;
- Certified Business Valuer and Registered Business Valuer, Australian Valuers Institute;
- Member, American Society of Appraisers;
- Asia Pacific Institute of Experts;
- Completed the Certified Patent Valuation Analyst course.
What is a business valuation?
In business valuations, owners are given an objective estimate of their business’s worth by determining its underlying economic value. Several factors influence a business’s valuation, including its industry, business model, stage of development, key competencies, major assets, and sources of available capital.
A business’s ability to grow its revenue and increase its profits by developing new concepts or ideas, entering new markets or by acquiring other companies or even attracting investors to provide them with the needed capital in order to drive returns in excess of its cost of capital is the foundation of business valuation.
How to calculate a business valuation?
A valuation analyst must consider all relevant information, including overall industry and economic conditions and changes in demand for the business model and its relevant products or services of a business, so as to ensure an objective and independent evaluation of the business’s worth.
Business Valuation is an elaborate and systematic process of determining an asset or company’s current or projected growth. Therefore, different valuation methods are applied to get the best value for the business. Experts typically adopt the three widely accepted valuation approaches: the market approach, income approach and cost approach.
What documents are needed for a business valuation?
The standard list of documents needed to perform a business valuation is as follows:
- ACRA business profile and other statutory records
- Annual Financial statements (balance sheet, profit & loss statement)
- Latest management accounts
- Annual Corporate Tax and GST filings or returns
- List of tangible assets like fixed assets and properties
- List of intangible assets like trademarks, patents and brands name
- Business plans, and financial forecasts for the next three to five years
- Payroll and CPF records
- Share subscription agreements
- Borrowing agreements and hire-purchase documents
- Inventory records kept
How long is a business valuation valid?
Businesses are valued based on their current value as of a specific date. A valuer or an appraiser takes into account only information known or available at that point in time. As such, the value of your business can fluctuate at any given point in time. Hence the value of your business can vary over a period of time.
Business valuations are generally valid as long as the methodology and assumptions are valid and robust. Annually updating your valuation or appraisal will reflect updated corporate performance taking into account its current economic and industry conditions. Some valuation assumptions remain static, others change slowly, while others are dynamic. All these factors will be taken into account when determining the value of a company by the valuer or appraiser.
Who should do a business valuation?
A professionally prepared and defensible business valuation report can only be produced by certified or accredited business valuers or appraisers. Such firms or experts will have certifications and credentials that demonstrate their high level of professional competence and long years of relevant experience. These valuers or appraisers are also independent and objective in their work. They are regulated by the respective valuation bodies’ code of ethics/conduct, giving added confidence to the business community and investors who rely on their reports.