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Business valuation is impacted by a multitude of factors such as the subject company’s industry, its stage of development and the source of the invested capital. Additionally, the variety of purposes for which business valuations are performed, the influence of local jurisdictional rules and available valuation methods further increase the complexity of business valuation. It is this complexity that has driven Kroll to assemble a world-class team of professionals that’s unmatched in its collective industry expertise, breadth of service lines and global presence. At the core of this team is a fundamental understanding of business valuation in general, while each team member contributes deep industry, service or geographic expertise.

Understanding Value Creation

Business valuation requires both a solid grasp of how value has been created prior to the valuation date and how it will continue to be created in the future. The foundation of business valuation is the ability to understand how a company cultivates ideas or concepts and deploys its invested capital, aiming to drive returns in excess of its cost of capital. The process of value creation does not follow a single path, rather many paths that vary by industry and the company’s position in its lifecycle. Understanding this process is at the heart of our extensive valuation experience, whether we are performing a valuation analysis for financial reporting, tax, M&A, strategic planning, business restructuring, or dispute and litigation purposes.

Measuring Value

Many have described business valuation as both an art and a science. The scientific and analytical aspect employs a variety of approaches or methods applied not only to the subject of the valuation itself, but also to the development of certain inputs into the measurement (e.g. cost of capital, discounts and premiums). The most commonly used valuation methods include the cost, market or income (DCF) approaches. While the cost approach may be applied on occasion, the income and market approaches are by far the most commonly utilized in business valuation. The income approach measures value based upon the present value of future cash flows of the business enterprise, while the market approach relies upon the application of market multiples of comparable companies or comparable transactions to the subject company.

The art of a valuation lies in the ability to apply these tools in an effective manner, utilizing professional judgment. This type of insight is gained over years of experience across the spectrum of company lifecycles, industries, jurisdictions, and valuation purposes and calls for a deep understanding of regulators’ and other stakeholders’ requirements and expectations.

How We Can Help

We tailor the scope of our business valuations to our client’s specific needs and purpose of the engagement. When appropriate, our valuation report provides an overview of the company, industry, economy; discusses value drivers; outlines the analysis performed, along with the inputs and assumptions; and incorporates detailed exhibits that support our valuation conclusion. The valuation analysis is sound and the report is defensible and if challenged, we provide our clients with additional support, including serving as an expert witness at trial.

Why Kroll?

Kroll routinely assists clients with the valuation of businesses and business interests, as well as tangible and intangible assets and complex, hard-to-value securities. Kroll is the largest independent provider of business valuation services in the world. With nearly 3,500 professionals operating out of more than 70 offices worldwide, we have performed valuations of businesses and business interests, both large and small, spanning all industries for a wide variety of purposes. There is no complex valuation issue that we have not faced. Our professionals provide input on valuation implementation issues to regulatory and standard-setting bodies, including the OSC, AcSB, IASB, SEC, FASB, IVSC and the OECD, and are deeply involved in valuation industry efforts to develop best practice guidance. Our professionals have the expertise and experience to satisfy any business or asset valuation needs.

People
Scott Davidson
Scott Davidson
Head of Canadian Disputes, Investigations and Valuations, Testifying Expert
Toronto
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Sid Jaishankar is a managing director at Duff & Phelps.
Sid Jaishankar
Managing Director, Testifying Expert
Expert Services
Toronto
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Chris Nobes
Chris Nobes
Managing Director, Technology Expert, Testifying Expert
Expert Services
Toronto
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Ashley Houlden
Ashley Houlden
Managing Director, Testifying Expert
Expert Services
Toronto
Phone

How we can help

Corporate Commercial Litigation

Numerous testimonies as independent experts in many forums and jurisdictions.

M&A Advisory

Kroll is a leading middle-market M&A advisor.

Tax Valuation

Kroll specializes in tax valuation-related consulting.

Transfer Pricing

Comprehensive transfer pricing advisory covering compliance, planning, controversy and implementation.

Fairness and Solvency Opinions

Kroll helps boards of directors and special committees formed by boards fulfill their fiduciary responsibilities when considering corporate transactions.

Business Combinations/Purchase Price Allocation

Kroll's expertise and independence has made us a leading provider of valuation services for business combinations.

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