Valuations
Our Valuations team is a recognised market leader, advising national and international corporations, law firms and individuals. The team is comprised of dedicated valuation specialists that have significant experience in the insurance sector.
Current market challenges
The escalating frequency and severity of climate events have caused climate change to be a significant risk for insurance industry operators. These events have caused a rise in the number of costly claims and have led to climate change being a key consideration for when insurers underwrite, price, and make investment decisions.
As such, climate-related risk has become a key factor when evaluating the business risk of insurance operators. The financial implications for valuation purposes may include, but are not limited to:
- Asset impairments, including goodwill
- Changes in useful life of assets
- Change in the fair value of assets
- Effects on impairment calculations because of increased costs or reduced demand
- Change in provisions for onerous contracts because of increased costs or reduced demand
- Change in providing and contingent liabilities arising from fines and penalties
- Changes in expected credit losses for loans and other financial assets
We work closely with clients to identify and understand the relevant business risks in each assignment.
How we can help
The Valuations Team is split into transactional, technical, and tax specialists to offer a full spectrum of valuation services. We routinely provide a full range of valuations, including:
- Valuations for M&A purposes
- Fairness opinions
- Strategic valuation advice
- Expect witness valuation services
- Restructuring valuations
- Valuations relating to share schemes
- Valuations of intellectual property and intangible assets
- Purchase price allocation valuations under IFRS and local GAAP
- Providing valuations under various sections of the UK Companies Act 2006
- Under Rule 24 of the City Code, estimate the value of unquoted securities following the acquisitions, delisting, and merger for an entity from the market
Case study |
We pride ourselves on being commercial and pragmatic, always focusing on ensuring the highest quality in a cost-effective manner. We have worked with a large private equity-backed aggregator in the insurance broker market for a number of years, supporting management with the financial reporting valuation requirements arising from its many business combinations. To date, we have provided purchase price allocation valuations for around 20 acquisitions and we are currently working on a further 10 assignments. The acquired companies range from high-street names to specialist brokers covering niche areas and international businesses. Our work primarily involves the identification and valuation of the acquired intangible assets using established techniques and guidance from the International Valuation Standards Council, and liaising with management and the company’s auditors to agree on the final position and ensure that the process is as smooth as possible. |
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