Value analysis advice

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PwC Russia’s Valuations & Economics team performs value analyses of business entities or stakes in businesses, intangible assets, real estate, machinery and equipment to address our clients’ requirements regarding mergers, acquisitions and disposals, reorganisations, financial reporting, strategic planning and other management decision-making.

Potential issues

  • You need advice on the acquisition or sale price of a business entity or a stake in a business entity, real estate, machinery and equipment, or intangible assets.
  • Your company is going to merge with another one and you are looking for swap ratio advice.
  • You need a tool that will project your company’s cash flows in order to:
    • run scenarios and understand their impact on the company’s value
    • determine the contribution of the company’s divisions to the total value of the business
    • maintain a certain level of financial performance to meet covenants on loan agreements
    • support other management decisions.
  • Your company requires debt funding and you want to understand your collateral value.
  • You need to establish a long-term incentive plan for senior management.
  • You need to carry out a valuation of property, plant and equipment in order to meet the requirements of IFRS first adoption, or you need a revaluation of assets according to your company’s policy.
  • You need to account your recent acquisitions and perform purchase price allocations under IFRS or US GAAP.
  • You need to carry out impairment testing of financial assets, fixed assets, intangibles or goodwill.

Services we offer

  • Deal support valuations. We analyse the target’s value for acquisitions and assess divestment opportunities. We advise shareholders, boards of directors and senior management on determining swap ratios during mergers. On complex deals we work as one team with PwC financial, tax and legal due diligence specialists in order to incorporate their findings in the value results. To evaluate forecast assumptions we bring in PwC industry experts who focus on strategy evaluation. For comprehensive cross-border transactions, we coordinate with valuation resources throughout the PwC global network.
  • Management decision support valuations and financial modelling. We assist our clients in understanding their business’ key value drivers. If necessary, we can develop a financial model and provide the client with a tool for value-based management, allowing them to run both scenario and sensitivity analyses. We offer independent advice to shareholders, boards of directors and senior management to help them make decisions on fund raising, as we know and understand the requirements and expectations of various types of investors.
  • Accounting valuations. By bringing together professionals with extensive valuation and accounting (IFRS and US GAAP) expertise, we carry out value analyses of assets and liabilities of acquired companies for purchase price allocations; appraise property, plant and equipment for IFRS first adoption and revaluations; and perform impairment testing.

Benefits for our clients

  • A focus on more robust deal support value analysis helps to establish the right expectations up front when communicating with counterparties.
  • Better insight on key value drivers helps our clients to deal with uncertainty and make well-founded management decisions.
  • Complete understanding of IFRS/US GAAP requirements and how they affect property valued helps to decrease the risk of significant restatements.
  • Knowing the requirements of other audit companies allows us to complete our work and vindicate the results within the reporting deadlines.