Valuations Services
Transactions
Valuation analysis plays a pivotal role in corporate transactions. It helps set realistic expectations, strengthens negotiation positions, and assesses the financial viability of deals.
At MKD, we offer valuation services to support our clients in a range of transactions, including acquisitions, divestitures, mergers, funding rounds, negotiations with financial institutions, and restructurings. Our valuation services include:
– Fairness Opinions
– Valuation Reports
– Calculation of Merger Ratios
– Multiples Analysis
Portfolio valuations
Our team has extensive experience working with investment funds to deliver independent and transparent valuations of illiquid assets, ensuring compliance with regulatory and financial reporting requirements. We provide valuation services for a wide range of assets, including but not limited to:
– Investements in private companies
– Loan portfolios
– Hybrid financial instruments
– Startups
Start-ups / Scale-ups
Valuing early-stage businesses requires specialized expertise due to the unique challenges these companies face. Unlike more established businesses, early-stage companies often have limited or non-representative track records, uncertainty about their viability, greater variability in projected outcomes, and complex capital structures.
At MKD, our professionals bring extensive experience in valuing early-stage businesses and assessing various components of their capital structure, including preferred and convertible debt. We work closely with both management teams and investors to ensure accurate and insightful valuations.
Intangibles
The value of an intangible asset is determined by the potential future cash flows associated with its ownership. In this context, an intangible asset can generate cash flows through its use along with other assets, its sale, the collection of royalties from licensing agreements, or simply by restricting access to other market participants.
Valuation of an intangible asset may be necessary for various reasons, such as contributions to a joint venture, mergers and acquisitions (M&A), fundraising, tax requirements, financial reporting, litigation or internal business management.
At MKD, we offer advisory services in connection to:
– Valuation of intangible assets (such as patents, trademarks, and trade secrets) for various purposes, such as transactions, financial reporting — including impairment testing — taxation, litigation, and more.
– Estimation of royalties for licensing agrements.
– Calculation of damages for intellectual property infringements.
Financial Reporting
Valuations in the context of financial reporting require deep knowledge of the accounting standards that dictate how such valuations should be performed.
Our specialists have extensive experience in valuation work for financial reporting purposes,including conducting valuations for companies and collaborating with audit teams to review valuations prepared internally or by independent valuers. Our valuation services include:
– Purchase Price Allocation (PPA)
– Impairment Testing
– Leases – IFRS 16
– Equity Investments
– Financial Instruments
– Intangible Assets
– Incentive Plans
Tax valuations
The increasing scrutiny of certain transactions makes it essential to have a strong defense of the agreed price or value. Tax authorities pay special attention to related-party transactions, internal reorganizations, transactions that do not benefit from tax neutrality regimes, and those involving intangibles, among others.
At MKD, we have extensive experience preparing valuation reports for tax purposes and defending these reports before tax authorities.
Independent Expert
Independent expert reports refer to valuation reports required by law to carry out certain corporate transactions, such as:
– Non-cash contributions to corporations (sociedades anónimas)
– Transformation of limited liability companies (sociedades limitadas) into corporations (sociedades anónimas)
– Shareholder separation actions
Litigation and Arbitration
We offer expert valuation support for shareholder disputes, bankruptcy proceedings, contract breaches, divorce cases, inheritance disputes, and other contentious situations.
Additionally, within our Intangible Asset Advisory practice, we provide valuation services in litigation contexts, including patent infringements, trademark disputes, and copyright-related litigation, among others.