Corporate finance

The accelerated pace of change in the business world, which will only intensify as the 21st century unfolds, places significant strategic and competitive pressures on companies seeking to expand their activities. Acquiring and developing new capabilities to grow market share and gain competitive advantage will be a key challenge facing business managers, whether their business operates in a national or international marketplace.

Our corporate finance specialists are here to help your business succeed in this fast-moving environment.

Our corporate finance advisory covers:

  • Due Diligence
  • Business Valuation
  • Lead Advisory

Due Diligence

Due diligence is a review of all, or specific aspects of, the affairs of a business.

Our due diligence services have helped our clients at crucial points in their business development. We help them to make good commercial decisions and avoid bad ones. These decisions are often highly significant for the client's future prosperity.

Due diligence is challenging and needs a real understanding of how the business operates and the people behind it.

A few actual cases:

Promising new industry, but lacking a regulatory umbrella:
We helped our client uncover the real truth that they were buying into a volatile industry that was fairly new and the lack of clear underlying regulation made it a risky deal.

Fraudulent acts by management:

Why were they selling? We discovered years of management fraud due to lack of shareholder monitoring, false audit reports performed by an unlicensed/unregistered public accountant and immeasurable tax liabilities due to the lack of documentation.

Business Valuation

Either for internal use, Merger & Acquisition, divestment or compliance purposes, Mazars in Indonesia can assist the management of your company in establishing a range of fair value of the business by taking into account the economic and operating environment, the company’s financial condition and the regulatory environment.

Ownership/Interest Valuation:

Whether for internal purposes, or as an offer negotiation base, you can rest assured that we are staffed with highly experienced corporate transaction analysts and valuation experts.

Transaction Fairness Study:

Whether the pricing, structure or the qualitative and quantitative aspects of a transaction, the main point is to discern whether management is executing the transaction in the best interests of the shareholders (non-controlling, as well as controlling).

Net Assets and Goodwill Valuation (IFRS 3):

With the establishment of the new IFRS 3, book value business combination is out. Therefore, more transparency is needed in establishing the balance sheet account after a business combination. With IFRS 3, the balance sheet accounts should be stated at fair value, meaning that all identifiable assets (tangible, as well as intangible assets like patents, brands, certain R&D costs, customer base, back orders, etc.) need to be priced at their worth in an arm’s length deal.

Biological Assets Valuation (IFRS 41):

Plantation assets are normally stated at cost of acquisition. Under IFRS 41, plantation assets are living assets that can grow, deteriorate or even die. Thus, the real value of a plantation’s assets at any given time may not reflect their book value. Hence, the value of a plantation’s assets needs to be determined annually.

Lead Advisory

Corporate action is normally carried out in the face of arising needs and/or opportunities that management believes to be good for the company.

In our years of advising clients, we find that sometime management is left at risk due to some unanticipated circumstances.

We will be on your side to assist in arranging your M&A, funding and disposal needs. And as our team of advisors has more then 30 years of combined experience, you can rest assured you’re getting the best.

  • A few actual cases:

Uncovering the hidden thread:

On one occasion, we saved a client from undertaking a merger action that, had it gone through, would have exposed them to huge potential tax liabilities.

Earned-out transaction:

We successfully assisted a client in understanding the structure of an offer to purchase with an earned-out payment.

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