Ashford provides appraisal, valuation, and transaction advisory services related to private companies and public organizations throughout Kenya and abroad.
Ashford draws on the expertise of our entire firm to provide clients with focused financial advisory services, including:
Ashford provides fair market value business appraisals and business valuations for transaction, development, and internal client purposes. Fair market value is defined as the price, expressed in terms of cash equivalents, at which a property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arm’s length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.
As it relates specifically to capital asset or personal property appraisal, Ashford has professionals dedicated to performing asset inventory and equipment/furniture valuations. We specialize in the inventory, tagging and valuation of major moveable equipment, other equipment, furniture, etc
Ashford has dedicated professionals to assist our clients with their pursuits in buying and/or selling targeted entities.
Ashford has a team focused in this increasingly important area of financial reporting
Business Provision Methodology
Our methodology with regards to the provision of business valuation services is outlined below; (Please note that in valuing specific intangible assets of businesses, similar methodologies are employed):
The nature of the business and the history of the enterprise from its inception;
The economic outlook in general and the condition and outlook of the specific industry in particular;
- The book value of the stock and the financial condition of the enterprise;
- The earning capacity of the enterprise;
- The dividend‐paying capacity of the enterprise;
- Whether or not the enterprise has goodwill or other intangible value;
- Prior sales of the stock and the size of the block of stock to be valued; and
- The market price of stock of corporations engaged in the same or a similar line of business, having their stocks actively traded on an exchange or over‐the‐counter market.
Investigation Analysis
Our investigation and analysis will be conducted as follows:
- We will conduct interviews with key management concerning past, present, and prospective operating results of the entity and their impact on the value of the company to a hypothetical third‐party investor. Steps include:
- Develop an understanding of the background of the entity
- Evaluate historical financial results and statistics
- Analysis. We will analyse the historical operating and financial data in order to gain an understanding of the operations of the entity. This will allow us to determine the
underlying dynamic factors pertinent to the projected operation of the entity. Steps include:
- Analyze historical operational results and statistics
- Prepare prospective operational and financial analysis
- Staffing
- Cost projections
- Capital expenditure requirements
- Working capital requirements
- Discount rate analysis, risk of cash flow projections
- Evaluate service area
- Evaluate competitive factors
- Complete physical site visit and interviews with key personnel
- We will estimate the fair market value of the businesses fixed and intangible assets according to the appropriate valuation methodology: the cost
approach, the market comparison approach, and/or the income approach. Briefly, the cost approach identifies the cost to recreate a business or asset, the market comparison approach computes value by examining the purchase price of similar companies or assets in a free and open market, and the income approach projects a future income stream attributable to a business or asset and then discounts those earnings back to present value. We will consider all three valuation approaches in our analysis and will rely upon the most appropriate method or methods in forming our value estimate. Steps include:
- Estimate of value range based upon preliminary DCF, market approach, and cost approach
- Review preliminary analysis with appropriate party
- Determination of appropriate valuation methodology: cost, market or income approach
- Final estimation of fair market value
- In addition to generating a full report that will outline our investigation and findings, we will accumulate and maintain in our files the requisite source data supporting our recommendation of a fair market value for the entities.