Valuation Services

Qeeva Advisory Limited offer Valuation Services to its Clients. We offer Valuation Services to our Client in the following situations:.

The concept of value can be manifested in various ways, whether through tangible or intangible assets within a business, an investment, or intellectual property. In the contemporary global economy, where opportunities abound at every turn, it becomes paramount for companies to possess the capability to determine whether these opportunities or transactions contribute positively or negatively to the overall value of the business.

What is Valuation?

Valuation is the procedure used to ascertain the current worth of a company, investment, or asset. It plays a critical role in aiding businesses and investors in making informed decisions about their financial strategies and potential opportunities.

This underscores the vital role valuations play in the decision-making process for a range of scenarios, including mergers and acquisitions, tax planning, dispute resolutions, corporate reorganization, and financial reporting or accounting.

Types of Valuation Services and How Qeeva Can Serve You

Valuation services are a crucial component of informed financial decision-making. Whether you are a business owner, an investor, or an individual looking to understand and harness the power of valuation, we will take you through the diverse areas of valuation services and their applications. Valuation services involve appraising business entities, ownership interests, securities, and partnership or limited liability company stakes, whether in private, public, or government-held organizations and therefore, it can be done in different ways.

  1. Business Valuation

Valuation of Business Interests encompasses the delivery of valuation opinions or consultancy services for assessing the worth of combined business interests or entire business entities. With this, you can understand the worth of your entire business or specific interests within it. 

These assessments also encompass estimating the fair value of entire business enterprises as required by regulatory authorities or financial and accounting standards-setting bodies, particularly about an entity’s financial statements. Let’s check out examples of business valuation.

  1. Succession/Exit Planning

Numerous business owners invest significant time in building their enterprises, but a substantial portion of them neglect to adequately strategize their exit plans. Business exit planning is sometimes referred to as business succession planning, yet there are distinctions. Succession planning involves identifying potential successors and offering training or knowledge transfer to smoothly transition management within a closely held Nigerian business. Since 2008, Qeeva has collaborated with numerous Nigerian business owners and their advisors, guiding them through the business valuation process to assist them in attaining their financial goals.

  1. Intangible Assets Valuation:

Intangible assets encompass a broad spectrum of non-physical assets, ranging from brands, goodwill, and customer relationships to royalties, trade names, copyrights, and software. Valuing intangible assets can be challenging, especially when the asset isn’t generating income. This complexity is further exacerbated by the potential novelty of the associated technology, making it challenging to gauge its future cash flow potential and competitive advantages for the owner.

With Qeeva, you can dive into the world of intangible assets, including purchase price allocation for mergers and acquisitions.

  1. Purchase and Sales Agreement:

It’s not uncommon to find companies having multiple owners or partners in this current era. The sudden and unexpected departure of one co-owner can exert a significant influence on the future trajectory of the business. Consequently, many private companies, especially those with two or more owners, opt to engage in purchase and sale agreements. A meticulously crafted purchase and sale agreement serves as a strategic blueprint for the seamless transfer of business interests, particularly in specific circumstances, whether voluntary or involuntary. These circumstances often include retirement, disability, or the unfortunate event of a co-owner’s passing—commonly referred to as “triggering events.”

Qeeva plays a pivotal role in defining the valuation of one co-owner’s buyout of another co-owner’s stake in the company. We ensure transparency and that the agreements can further delineate the funding mechanisms and payment terms associated with the buyout in the event of triggering events.

  1. Fairness Opinions

Fairness opinions entail the issuance of a report, typically directed to a Board of Directors, offering a comprehensive assessment of the contemplated acquisition or disposition of assets or business interests. It is generally anticipated that the Board of Directors will place substantial reliance on the fairness opinion when making determinations regarding the advancement or finalization of a transaction. 

Furthermore, it is commonly understood that third parties, beyond the Board, may require access to the fairness opinion. In certain instances, references to the fairness opinion report may also be necessary for documents or disclosures accessible to the wider public, thus underlining the significance of this evaluation in maintaining transparency and ensuring well-informed decision-making processes.

With Qeeva, you can always ensure equitable transactions through expert fairness opinions.

  1. Impairment Test

Impairment testing is a vital aspect of business valuation, ensuring that a company’s asset values are accurately reflected in its financial statements. This process involves evaluating whether an asset’s carrying value exceeds its recoverable amount, helping to prevent overvaluation and maintain financial transparency. In today’s dynamic business environment, where conditions constantly change, impairment testing is crucial for sound decision-making and financial stability. By regularly assessing and adjusting asset values, businesses can adapt to market fluctuations and position themselves for long-term success.

Identify and address potential impairments in your assets’ value

  1. Intellectual Property:
    Intellectual property (IP) is akin to traditional property, as it can be bought, sold, or licensed. IP owners have the authority to prevent unauthorized use or sale of their assets. The value of IP hinges on various factors, including market share, legal protection, and profitability. Additionally, growth projections, industry dynamics, and emerging technologies influence its worth. In today’s business landscape, comprehending and managing IP effectively is crucial for harnessing its substantial value.
  1. Share-based Payment Valuation: This involves determining the worth of share-based compensation provided to employees and stakeholders within a company. This valuation is a critical aspect of modern compensation packages, aligning the interests of key individuals with the organization’s performance and growth.

Qeeva emerges as the perfect choice for Share-based Payment Valuation due to its extensive expertise in business valuation services. By choosing Qeeva, businesses can navigate the complexities of share-based payment valuation with confidence, fostering motivation and alignment among their workforce and partners.

  1. Valuation Advisory Services

Qeeva will strategically guide you through the financial maze. We are your surest bet towards a struggle-free valuation process. 

  1. Fair Value Measurements in Financial Reporting can be a challenging task, but with Qeeva, you have the perfect partner to tackle this complexity with confidence. Qeeva offers extensive expertise in fair value measurements, ensuring that your financial reporting is accurate, compliant, and reflective of the true value of your assets and liabilities. Our team of professionals is well-versed in the intricacies of financial reporting standards and regulations, making us the ideal choice for navigating this intricate landscape.

By choosing Qeeva, you’re placing your trust in a partner dedicated to helping you meet your financial reporting obligations while providing insights to optimize your financial strategies. With Qeeva by your side, you can confidently handle fair value measurements, ensuring the integrity and transparency of your financial reporting process.

  1. Transaction Advisory: Transaction Advisory services are a critical compass in navigating the complex landscape of mergers, acquisitions, and various transactions. Qeeva emerges as the perfect choice for these pivotal moments, offering expertise and guidance that empowers clients to make informed and strategic decisions. With a wealth of experience and a commitment to excellence, Qeeva ensures that every transaction is approached with precision, helping clients seize opportunities and mitigate risks effectively. When it comes to safeguarding your financial interests and achieving your transaction goals, Qeeva stands out as the trusted partner that ensures success in today’s dynamic business environment.
  1. Fund Portfolio Valuation:

Accurate evaluation of investment portfolios is crucial for investors seeking to optimize their financial strategies. Fund Portfolio Valuation ensures that the true worth of your investment holdings is assessed with precision, enabling well-informed decisions and risk management. Qeeva excels in this domain, providing expertise and cutting-edge tools to maximize the potential of your investment portfolios.

  1. Model Design and Risk Assessment for Financial Instruments:

Creating robust financial models and assessing risks associated with diverse financial instruments is essential in today’s complex financial landscape. Qeeva’s proficiency in Model Design and Risk Assessment empowers clients to navigate these complexities with confidence. With their expertise, you can make informed financial decisions and mitigate risks effectively, making Qeeva the perfect choice for comprehensive financial instrument evaluation and modelling.

III. Infrastructure / Project Finance Advisory by Qeeva

  1. Project Finance Advisory: Qeeva’s Project Finance Advisory services are designed to secure financing and structure projects for success. With a team of experts, we help you navigate the complexities of project financing, ensuring that your ventures are adequately funded and positioned for growth.
  2. Debt Finance Advisory: Trust in Qeeva’s Debt Finance Advisory to optimize your debt strategies, providing the necessary financial leverage for your business’s expansion. Our tailored solutions empower you to make informed decisions that fuel sustainable growth and financial stability.
  3. Project Bidding Advisory: Gain a competitive edge in project bidding with Qeeva’s expert guidance. We offer valuable insights and strategies to help you stand out in the bidding process, enhancing your chances of winning lucrative projects.
  4. Project Feasibility Study: Qeeva conducts thorough project feasibility studies to assess the viability of your ventures and investments. Our assessments factor in critical variables, enabling you to make sound decisions and allocate resources wisely.
  5. Project Transaction Advisory: Navigate project transactions with confidence and expertise, thanks to Qeeva’s guidance. Our transaction advisory services ensure that you make well-informed choices, mitigating risks and maximizing opportunities.
  6. Financial Modeling: Qeeva specializes in creating dynamic financial models that drive strategic decision-making. Our models offer valuable insights into your financial future, empowering you to plan effectively and optimize your resources.

Employee Stock Ownership Plan Valuation: An Employee Stock Ownership Plan (ESOP) is a qualified employee benefit plan allowing employees to possess shares in their employing company. ESOPs serve as financial and tax tactics while aligning employees’ interests with company owners’.Qeeva plays a pivotal role in ESOP valuation for businesses. We provide expertise in valuing the business accurately, ensuring that the ESOP’s establishment and ongoing administration are both well-informed and compliant.

Tax Valuation: Tax valuation is a crucial service offered by Qeeva to empower Nigerian businesses with effective financial planning and compliance. This specialized valuation process involves assessing the value of assets and liabilities for taxation purposes. By leveraging tax valuation services, businesses in Nigeria can:

  • Minimize Tax Liabilities: Accurate valuation ensures that businesses are not overtaxed, helping them reduce tax burdens and maximize profits.
  • Enhance Compliance: Qeeva’s tax valuation services ensure businesses adhere to Nigerian tax regulations and provide a solid foundation for transparent financial reporting.
  • Facilitate Transactions: In mergers, acquisitions, and restructuring, tax valuation enables businesses to navigate these complex processes while optimizing tax implications.
  • Support Decision-Making: Qeeva’s expertise in tax valuation equips business owners with data-driven insights, aiding strategic decision-making regarding asset management and tax planning.

Valuation services encompass a wide range of capabilities that can elevate your financial acumen and empower you to make informed choices. Whether you’re a business owner seeking to understand your company’s worth or an investor looking to optimize your portfolio, valuation services offer the expertise and insights you need. Qeeva emerges as the perfect partner for Infrastructure / Project Finance Advisory, offering a comprehensive suite of services to bring your projects to life.

Why Do You Need Valuation Services?

Businesses need valuation because it offers owners and entrepreneurs a comprehensive view of their business, revealing value drivers and detractors. Beyond preparing for a potential sale, it sets the stage for a strategic roadmap, highlighting risks and hidden opportunities. These insights empower you to enhance your business’s value before a sale or succession handover. Join in let’s see the reasons you or your business will need valuation services.

  1. Business Exit/Succession: Valuation is a very important step for any business owner who is planning a business exit or succession. In fact, it has to be a primary factor before the business is brought before buyers or deciding who would succeed you. Understanding the true value of your business gives you an idea of its worth, financials and the suitable person to take over or sell it to at the best price.
  2. Increasing Access to More Investors and Financing: One of the foremost questions asked when seeking investors to invest either for debt or equity, a valuation report is needed to help them gain an understanding of your business’s current financial standing.
  3. Mergers and Acquisitions (M&A): When a company expresses interest in acquiring your business, it becomes crucial to demonstrate the value of your business, its historical growth, and its future growth potential. Typically, prospective buyers aim to acquire or merge at the lowest possible cost. However, having a clear understanding of your business’s true value allows you to build a compelling case, supported by the appraised valuation figures you’ve received. This empowers you to negotiate from a position of knowledge and strength during M&A discussions.
  4. Forming an Employee Stock Ownership Plan: An ESOP permits workers to acquire company shares at a predetermined rate, granting advantages like tax incentives, capital injection, and limited liquidity for owners who opt to stay private. To initiate an ESOP, an annual valuation of the business is essential, as it determines the share’s pricing.
  5. Disagreements among shareholders or partners:

In the world of business, disputes between shareholders or partners can arise for various reasons, including differences in opinion, financial concerns, or changes in business direction. In such contentious situations, a thorough business valuation becomes essential. It offers an objective assessment of the business’s worth, aiding in the resolution of disputes by providing an equitable basis for decision-making. Valuations help parties involved in the conflict understand the true value of their stakes and can guide negotiations for a fair and amicable resolution.

Content of Business Valuation Report

Valuation Report Contain:

  1. The name of the Engaging Party.
  2. Description of the business, business ownership interest, security or intangible asset being valued.
  3. The date at which the valuation has been determined, the date the Valuation Report has been issued.
  4. The purpose for which the Valuation Report has been prepared.
  5. The name & qualifications of the members responsible for the Valuation.
  6. The scope of the Valuation, including any limitations or restrictions.
  7. The basis of the Valuation.
  8. Valuers Limiting Conditions
  9. Land Registry Number if applicable
  10. Property Description/Situation
  11. Title Details
  12. Statutory Taxes/Levies
  13. Tenacies if applicable
  14. The Valuation Approaches adopted and how they have been applied.
  15. Specific information relied on in the report and the extent to which it has been reviewed.
  16. Material assumptions applied in the Valuation and the basis for those assumptions.
  17. A Conclusion of Value or Calculated Value (depending on type of Valuation Service).
    All qualifications that materially affect the Conclusion of Value or Calculated Value.
    A description of other Valuation Approaches and Valuation Methods considered and the reasons why they were not considered relevant for the Valuation.
  18. Sufficient details of the Valuation calculations to allow a reader to understand how valuation was determined, the Conclusion of Value or Calculated Value.
  19. A summary of relevant financial information
  20. A summary of the relevant industry.
  21. Definition of Valuation Terminology
  22. Observations, Commentary, Recommendations
  23. The Opinion of Value in Words and Figures
  24. The Valuer, his or her Organization and Signature

Information Required for Business or Company Valuation

  • Brief history of the business, when established, acquired, locations, services.
  • Organisation summary – key staff, roles.
  • Resume of the owner.
  • Details of owner’s salary, superannuation and other benefits (including MVs) for last 3 to 5 years.
  • Confirm corporate / entity structure.
  • Current ownership of the legal entity being valued.
  • Details of the recent transfer of ownership in the entity: date, number of shares, consideration.
  • Audited Financial statements for last 3 to 5 years, including detailed profit and loss statement, balance sheets, notes to accounts.
  • Year to date management accounts (profit and loss and balance sheet) if available or else
  • Budget for year ahead, if available.
  • Current business plan, if available, or else the directors’ perceived strengths, weaknesses, opportunities and threats of the business and details of main competitors in locations operated.
  • Analysis of sales last 2 years – top 10 customers in sales pa.
  • Aged debtors listing.
  • Details of key suppliers – purchasers per annum last 2 years.
  • Depreciation schedule.
  • If plant and equipment, investments are major assets of the business, they may need be independently
  • Details of any major capital expenditure required in the short to medium term.
  • Details of lease of premises – term, options, rent pa. If the business premises is owned by related party, assessment of commercial rental on property.
  • Details of any un-booked employee entitlements (many SMEs do not accrue for employee entitlements).
  • Details of any un-booked Work in Progress.
  • Details of any carry forward tax losses.
  • Details of any contingent liabilities (eg current or pending legal proceedings).
  • Details of any long-term commercial contracts.
  • Details of required licenses, permits and registrations.
  • Details of intellectual property held by the entity.
  • Details of borrowing facilities in place.
  • Industry Information
  • Details of any unusual or one-off transactions in last 3 to 5 years.
  • Recoverability of loan accounts due to the entity.
  • Any other information considered relevant to the valuation

Our Valuation Experiences

Night Club

Weekly News Magazine

Accounting Practice

Property Consulting Practice

Cosmetic Manufacturing Firm

GSM Recharge Card Distribution Company
Road Transport Service Company

Legal Outfit Trading Company

Lost Profits Calculations for a Trading Company

If you would like further information regarding our services, please contact us:

Why You Should Work With Us for Your Valuation Services?

Expertise in Business Valuation: At Qeeva, we have experts readily available to attend to and efficiently manage your business needs.

Qeeva has proven track record of more than a decade in dealing with the valuation of every kind that pertains to your business.
Regulatory Compliance: As a consulting company, we are fully committed to staying up-to-date with all relevant regulations and guidelines, ensuring that your business are in full compliance to national standards.

Client-Centric Approach: We are a brand, we prioritize our clients’ needs first, offering personalized solutions and dedicated support throughout the business valuation process.

Transparent Communication: We are particular about our commitment with you and transparency is our standard and open communication, providing clients with clarity and confidence in their decision-making.

Customized Solutions: Our services are never one-size-fits-all. We make sure to offer tailored valuation strategies to your business’s unique circumstances, ensuring that your desired objectives are met effectively.

Collaborative Partnership: We are your closest collaborative partner, ensuring we work closely with you to achieve every valuation goal and carefully help you navigate any challenges that may arise.

Commitment to Excellence: We are dedicated to delivering accurate, reliable, and high-quality valuation services because we are particular about reinforcing the trust you can place in our expertise.

 

Reach Out to Us via call at +234 8023200801, 08075765799 or email: info@qeeva.com or fill out our contact form