The need for acquisition reporting An unlisted public company involved in the fast-moving consumer goods industry acquired a strategically-significant company and required a purchase price allocation to comply with AASB3 Business...
Valuations
Valuation for impairment testing (AASB136)
The need for valuation impairment testing Purchased goodwill reflected on the balance sheet of an ASX company is required by AASB136 to be recorded at an amount which is no more than recoverable amount. The goodwill of each Cash...
Conversion rights and ‘free’ options (AASB9 financial instruments)
The need for conversion rights and 'free' options An unlisted mining and exploration company developed a capital structure characterised by vanilla (ordinary) equity and several tranches of convertible notes. Over its development history,...
Executive long term incentive plan (AASB2 Share based payment)
The need for an executive long term incentive plan Each year, an ASX300 company offers an executive long term incentive plan [“ELTIP”] to its senior executive team as part of their remuneration package. This is commonplace and ELTIP is...
Case studies: Valuation Reports
Its not often we can share the work we do in a public fashion. Independent expert reports prepared for Chapter 6 of the Corporations Act and ASX listing rules are a rare exception. Here are two recent examples of work undertaken by the...
What is an equity valuation – and why is it so complicated?
An equity valuation aims to mimic the price that would be observed in a marketplace in which the business or equity would trade if it were listed in that marketplace. That marketplace (e.g., ASX) aims to provide to buyers, sellers,...
Value creation class – Value Creation Process
In this episode, Luis Senra explains the Private Equity process to create value:
– Company assessment
– Foundations
– Real ROI improvement
– Growth
Value creation class – Value Strategies
In this episode, Luis Senra explains the 5 strategies that every company has to create value:
– Reducing company risk
– Reducing invested capital
– Optimising cash systems portfolio
– Improving real ROI
– Adding new cash systems
Value creation class – Fundamentals of Value Creation
In this episode, Luis Senra explains:
– How a Private Equity thinks
– Value as the excess of return
– Companies as a collection of investment opportunities
How to create equity value in the face of uncertainty
Equity value is a top priority when buying a new business, investing in a new project or starting a new venture. And right now, our economies and capital markets confront endless uncertainties. Uncertainties come in different shapes and...