There are a number of key valuations issues involving a joint venture (JV). These include but are not limited to the feasibility of the joint venture, what each party is contributing to the JV, the distribution of value between partners and the distribution of synergistic benefits between the partners.
Our valuations team has extensive experience in advising clients on the set-up and dissolution of joint ventures. We “think like the principal” and align our effort with yours to deliver maximum value at every stage. Right from the first broad feasibility assessment to post-deal valuations, we support you to make an informed decision regarding your JV deal.
Key issues we can help you with:
We are equipped to assist you with all aspects of a JV deal. We align the pricing approach and the key business drivers between the partners, reducing complexity of deal parameters to drive value preservation. While closing the deal, we deliver value through a quick and streamlined compliance process.
JV feasibility assessment:
We support you with the initial modelling and valuation for the deal, considering interim agreements or arm’s-length adjustments.
Combined business model and initial equity split:
We help with preparing a robust combined financial model with projected cash flows, including the expected synergies. We also highlight key value drivers for the partners.
We assist decision makers determine potential equalisation items in order to achieve the required equity split.
Post-deal accounting related valuations:
We help you ensure smooth compliance and value assets and liabilities as per regulatory requirement.
Future-proof value preservation:
We plan for and help ensure value preservation in the event that the JV is dissolved at some point in the future.
Accounting standards are prescriptive in how to conduct an impairment review, but at present, there are significant challenges in applying these rules
Considerations for conducting impairment reviews in the current environment and next steps