About Marsh’s Valuation Advisory Services

We are a global international valuation advisory group with years of experience providing fairness and valuation opinions in support of transactions. We provide full-scale valuation advisory services covering equity, derivatives, intangible assets, machinery and equipment, real estate, contingent assets and liabilities and alternative investments.

Whether involved with a sale, acquisition, financial reporting, intellectual property (IP) transactions, litigation, or reviewing insurance coverage, organizations around the world rely on our practice for independent and thorough valuations.

With 24,000 employees and annual revenues approaching $5 billion, Marsh serves more clients in more industries worldwide than any firm in our industry. We work with businesses, public entities, organizations, and private clients in over 100 countries.

As a wholly owned subsidiary of Marsh & McLennan Companies, Inc., a public company with annual revenue of over $11 billion, we can also provide access to the complementary services of our sibling companies, Mercer, Kroll, Guy Carpenter and Oliver Wyman.

Services Overview

Given the increasing need for organizations to effectively manage risk, maximize cash flow, and adhere to U.S. and international financial reporting standards; it has become critical for management to understand the value of their assets, companies, and securities. Marsh’s Valuation Services Practice provides a full range of professional, independent valuation advisory services for corporations, private equity firms, hedge funds, and government entities worldwide across virtually every industry. Whether involved with a sale, acquisition, financial reporting, intellectual property (IP) transactions, litigation, or reviewing insurance coverage, organizations around the world rely on our practice for independent and thorough valuations.

• Fairness and Solvency Opinions
• Financial Reporting Valuations
• Tax Valuations
• Portfolio Valuations
• Insurance Placement Valuations
• Intellectual Property Valuation and Management
• Litigation Support
• Real Estate Valuation
• Machinery and Equipment Valuation
• Fresh Start Accounting
• Financial Modeling
• Feasibility Study
• Transaction Valuation Advisory
• Statutory Valuation Review
• Other Services

• Purchase Price Allocation (SFAS 141R and IFRS 3)
• Goodwill and Asset Impairment Test (SFAS 142, SFAS 144, IFRS 3, IAS 36)
• Stock options and Share-based Payments (SFAS 123R, IFRS 2)
• Financial Instruments (SFAS 133, SFAS 150, IAS 32, IAS 39, IFRS 7)
• Biological Assets (IAS 41)
• Fair Value Reporting (SFAS 157)
• Fresh Start Accounting (SOP 90-7)
• Financial Guarantee (IAS 4)

• Business interruption valuations
• Property and fixed asset valuations
  
  
  • Property coverage placement
  • Fixed asset coverage limit review

• IP Monetization
• IP Management
• Lending against IP value
• IP acquisition and disposal
• First party IP insurance

Marsh has the capability – through our own professionals and through our relationships with best-in-class real estate appraisal firms worldwide – to provide a fair market value as part of the due diligence process, public disclosure as well as an analysis for financial reporting purposes.

Marsh differentiates itself from real estate appraisal firms through our ability to provide a replacement cost analysis to estimate the appropriate insurable value for the acquired
assets. While the fair value of real estate assets are estimated using the income or market approach, the insurable value of a building or contents must be estimated on the cost to replace the assets. Marsh, unlike most real estate appraisal firms, has
dedicated fixed asset experts who focus specifically on estimating the replacement costs of fixed assets for insurance coverage purposes.

Machinery and Equipment Valuation

Company requires advisory services for assessing value of machinery and equipment for purposes like acquisition, disposal, bank financing, insurance placement and financial reporting.

Marsh’s valuation experts have strong experience in the valuation of machinery and equipment for virtually every industry. We have a team of engineers equipped with industrial knowledge in assessing the fair value of the assets with full consideration of physical, technological, functional and economic factors.

Depends on the purpose and the scope of your requested services, we can perform a desk-top valuation or a detailed analysis with site inspection and physical inventories of the machinery and equipment.

Fresh Start Accounting

AICPA Statement of Position 90-7 (SOP 90-7) requires that the balance sheet of a company emerging from Chapter 11 bankruptcy must be restated to fair value. The reorganization and allocation of the entity's value must also be in conformity with the procedures specified by SFAS 141.

Marsh is experienced in financial reporting valuations, specifically valuations in compliance with SFAS 141. We can fulfill the need of companies emerging from Chapter 11 bankruptcy.

Financial Modeling

Financial models are one of the most important tools for decision making. A well-developed financial model would provide management with timely information in making well-informed decision under tight timeframe.

Good financial models should be robust, relevant and reliable. They must be easily used and reviewed by others, must be free of fundamental omissions and logical errors, and must be dynamic and readily adaptable to changing assumptions.

We assist clients in building models according to best practice methodologies that minimize modeling risk and facilitate clients’ understanding of the key drivers for a successful transaction.

We can also assist clients in reviewing self-developed models to test for items like technical integrity, accuracy, flexibility and whether the assumptions properly reflect key terms of the deal agreements.

Feasibility Study

Feasibility study is one of the most important parts over an investment or financing process. Sound investment decision should be made based on thorough investigation, market study and financial analysis.

Through high quality research and analysis, we provide clients with thorough, in-depth investigation of business opportunities, forecast the overall potential of projects and provide accurate analysis to determine the economic viability of projects.

Through scenario studies and sensitivity analysis, we assist clients in understanding the value drivers and risk factors present in a project and prove to potential investors the viability of a project under different scenarios.

Our feasibility studies contain comprehensive, detailed information about the business structure, the products and services, the market, logistics of how you will actually deliver a product or service, the resources needed to make the business run efficiently, as well as other information about the business.

Transaction Valuation Advisory

We provide independent and objective valuation advisory services for mergers, acquisitions, asset purchases, corporate debt and equity financings, joint ventures, and shareholder-related matters. Our services cover both the buy side and the sell side:

To Buy Side Investors

• Provide valuation range for negotiation purposes
• Identify key value drivers
• Measure incremental value resulting from better management of target assets
• Perform due diligence on seller
• Identify and quantify synergies
• Earnings Accretion / Dilution Analysis
• Value contingent consideration
• Financial and business modeling of target and combined entity

• Provide valuation range for negotiation purposes
• Fairness Opinion
• Valuation of acquirer’s equity in share consideration transactions
• Perform due diligence on buyer
• Perform valuation of seller’s assets for planning purposes
• Provide valuation opinions of subject equity for tax and corporate planning purposes.
• Assist in developing valuation parameters for shareholder buy-in/buy outs

• Help you understand the local valuation rules and regulations
• Act as an independent advisor to monitor and review the statutory valuation process
• Review the draft valuation report prepared by local valuer and comment on the methodologies and assumptions used in the valuation.
• Perform research and analysis to justify the key parameters and assumptions used by the local valuers
• Identify issues to assist you in your negotiations
• Assist you to liaise with Chinese partners and local valuers

• Restructuring
• Auction rate securities
• Mortgage-backed securities
• Distressed and illiquid securities and investments
• Cost segregation analysis
• Commodity and energy derivatives
• Economic / useful life analysis

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