While accounting reports reflect historically accumulated spending of company’s stakeholders, fair value of a business may differ significantly from balance value of its assets. Being an open dynamic system, a company is subject to substantial external effects which may change company’s value for investors and owners in a moment. A company’s ability to generate revenues and its position relative to peers should be taken into account.

Thus, estimation of a company’s fair value would provide interested parties with a reliable basis to address the following purposes: project investment decisions, attracting project and structured finance, strategic investment to capital, M&A deals, etc. The analysts of IBcontacts ground their recommendations on in-depth analysis of macroeconomic trends and market environment analysis, assessment of a company’s historical operation, and employment of modern value modeling techniques.

Typical report on fair market value estimation includes the following parts:

• general description of the company;
• analysis of macroeconomic factors and market-related factors influencing the company’s operation;
• financial model description including justification of main assumptions and reasoning the choice of estimation method (income methods, peers analysis, comparable deals analysis);
• description of estimation results;
• conclusions and investment recommendations.

Fair value estimation recommendations may be provided as a separate service, as well as they may be a part of larger service package: M&A deals preparation and support, management accounting implementation, etc.