For asset heavy companies, The Valuation Company provides advisory services such as Technical Due Diligence, Operational Due Diligence, Asset Reconciliations and Real Estate Advisory. A due diligence is often required in a transaction, whilst asset reconciliation is desired for accounting and/or post-deal integration. Our real estate advisory is mostly directed to the acquisition process itself.
Technical/Operational Due Diligence
Technical Due Diligence is an investigation of the physical and technical aspects of the tangible fixed assets of a company. In this due diligence we analyze the historical production figures e.g. OPEX and CAPEX projections are compared to common practices in the industry. The feasibility of a future business case is measured based on the current machines, achievable capacity, efficiency, and estimated costs of future refurbishment or replacement of assets.
The Valuation Company considers an Asset Reconciliation as the identification and (re)organization of the tangible fixed assets of a company. An asset reconciliation is needed because often accounting asset lists are incomplete or do not match the technical service/maintenance lists. In accounting, machinery is often capitalized in aggregate according to specific projects or invoices by equipment suppliers. Or assets are allocated to different asset numbers compared to numbers utilized by the maintenance department. For The Valuation Company, an asset reconciliation means, but is not limited to, (i) cleaning of the asset list in which unambiguous numbering is applied, (ii) separating machinery related assets from buildings, and (iii) organizing production processes and cost centers. In doing so, we use integrated models without influencing the accounting depreciation of assets. The advantage is that the technical department can capitalize costs of activities to the proper assets, and replacement of equipment can be processed one-on-one in the maintenance and asset list. As a result, future appraisals are thus carried out more efficiently.
Real estate advisory
The Real Estate Advisory services of The Valuation Company are often combined with appraisals and consist of:
Always included is an analysis of the object and how this fit in the current Real Estate Market. Please contact The Valuation Company to find out how we can further assist you.