For businesses facing financial difficulties, financial reorganization accompanied by technical modernization often proves to be a more economically feasible option than
liquidation or split up. The answer as to what option is more advantageous can be provided after an independent valuation of the company.
In case of business restructuring, an independent valuer can help to find the best asset management solution both from the economic and legal perspectives. In merger, acquisition,
division, or split-up of the company, an independent valuation of assets will help to establish the fair share of each shareholder (partner), reflecting the partner’s actual
contribution to the shareholders’ capital.
In case of liquidation of a company and total sale of its assets, which previously comprised an integral production complex, professional valuer can advise the best method
of assets division in order to minimize financial losses. First, the valuer can conduct valuation of the company as an income-earning property complex and then value each asset
on a stand-alone basis; comparison of these two value indicators will provide benchmarks for making accurate management decisions.
If the owners of the restructured company include state or government bodies, an independent valuation of the company’s assets is required by the law in Russia.
Valuation of the market value of assets is also required in the event of withdrawal of one or more founders from the company in order to determine the amount of entitlement payments.
An independent valuation is especially important in this case, because in Russia the valuation report has the status of a public document of evidential significance and can be used
by the court to quantify entitlement payments.
This list of required documents and information is preliminary and may be reduced or expanded depending on valuation purpose after our review of the valuation assignment.