Valuation office

From time to time, everyone requires the valuation of various forms of property. The reasons for needing to appraise or value an asset can vary.

Valuation of all types of commercial and residential real estate or real estate companies for any purpose in the form of expert opinion, expert letter, economic study and other professional statements. In line with the valuation’s purpose and your requirements, we will determine the appropriate category of value. We offer a comprehensive portfolio of real estate consulting services in this area.

We provide complete transfer pricing documentation preparation, propose appropriate strategies for setting transfer prices between related parties, evaluation of compliance of transfer prices with the arm’s length principle, including determination of market interest rates for intra-group loans.

Mergers, demergers, or changes in legal form represent common methods for transforming companies to improve the management of a business holding company or to meet the requirements of bank financing. At the same time, legal conversions can reflect the fair values of assets and liabilities in financial reporting.

We no longer live in the days of Judge Dee, and therefore few lawsuits dealing with compensation for injury (damages) can be decided without expert testimony. The amount of damages represents the so-called ‘question of fact’ that must be answered by an expert, and the current legislation allows even one of the parties to submit an expert report as evidence in a court case.

Financial assistance is a special type of relationship within a holding company. The basic regulation is provided in Sections 200 and 311–315 of the Business Corporations Act.

It is quite likely that every company or business owner will consider buying another business  or part thereof in order to grow and expand. The reasons may be both strategic and financial. Selling a business or part thereof is the opposite situation.

By combining transfer pricing with valuation, we can accurately determine values in non-cash contributions, sales of assets within a holding company and in the provision of loans and guarantees. Our expert approaches and analytical skills help us effectively navigate these complex areas to ensure fair and accurate valuations in corporate transactions.

Most valuations for Czech accounting standards concern legal transformations (mergers and divisions), in which each asset and liability of a company can be valued at its market fair value. This ensures that the picture provided by the accounting books more accurately reflects reality.

If you hold more than 90% of a company’s issued shares and contemplate taking full control, you may take advantage of the conditions specified in Act no. 90/2012 Sb., regulating business corporations and cooperatives.

The Insolvency Act offers several options to best fit a specific debtor’s situation and considers liquidation procedures (bankruptcy) as well as rehabilitation (reorganisation and discharge of the debtor). The choice of the method that is suitable for dealing with the debtor’s insolvency should follow the principle of the best possible satisfaction of creditors.

A financial/cash flow model is an effective tool to manage corporate finance and is also a must if you wish to make an acquisition. The model can focus on the profitability, maximisation of the value, or indebtedness or tax optimisation of the acquisition.

Should you find yourself in any of these situations, we are prepared to draft economic arguments (expert opinions) specifying the position of the company in the relevant market (we typically estimate the company’s market share) or quantifying the damage the company may have suffered as a result of unfair behaviour by a competitor

Numerous Czech companies, as part of international groups, prepare their financial reports in accordance with the International Financial Reporting Standards (IFRS) or the US GAAP. These systems often place great emphasis on using fair value and testing the return on the assets held.