International Business Combinations

The continued globalization of business along with M&A as a core growth strategy for many companies drives an undeniable need for independent valuations delivered by a firm offering local experts and global reach. As the founding member of Valuation Research Group (VRG), VRC offers deep knowledge and experience in valuations and value-related services for international business combinations.

Whether in support of our valuation of the Panama Canal, tax-reporting needs in Europe, or fixed asset valuations of factories in China, our international reach allows us to provide our multinational clients with a single source for expert, independent valuation support.

VRG’s 50+ offices are located throughout continental Europe and the United Kingdom, Australia, Argentina, Brazil, Canada, Greater China, Colombia, Germany, Hong Kong, India, Israel, Japan, Mexico, Spain, and the United States. This global network of nearly 1,500 professionals serves clients in more than 60 countries and provides:

• Local market knowledge
• In-country tax expertise
• Cost-effective real property and fixed asset valuations

Our experience includes foreign and multinational acquisitions of all sizes in nearly every industry. Larger acquisitions generally encompass multiple legal entities. Our experience with typical engagements in support of international business combinations include:

• The $6.0 billion acquisition of Rothmans, the second largest tobacco company in Canada
• The $2.0 billion acquisition of the largest juice company in Russia by a U.S. multinational
• The $7.8 billion acquisition of the Groupe Danone biscuit business by Kraft Foods
• The valuation and appraisal of fixed assets of the Panama Canal for the Panama Canal Authority in support of the $5.25 billion canal expansion

We provide valuations to support the financial requirements outlined in the International Financial Reporting Standards (IFRS). Since not every country that has adopted IFRS has adopted each new standard, there are intricacies to each country’s reporting requirements. Our professionals, based in respective countries and working with many of the world’s leading multinationals, have the knowledge and experience to assist with each country’s variation of IFRS. Most often, our work in this area is pursuant to IFRS 3R, Business Combinations. We are often also engaged in support of International Accounting Standard 36 (IAS 36), when testing for potential asset impairment and IFRS 2R, in support of share-based compensation.

VRC commonly supports multinational tax reporting needs. Frequently, this involves the valuation of non-U.S. legal entities including foreign holdco’s, IP holdco’s and operating entities in support of tax restructuring. We also value intellectual property for transfer from tax jurisdiction to another.