Audit and Valuation Services

Accurate Values with Valuation Services

In the modern business environment, correct decisions are only possible based on real and accurate information.

Valuation services:

• Determine the objective market value of assets and businesses
• Create a solid foundation for tax planning and financial reporting
• Help reduce risks during purchase-sale, mergers, and investment decisions

Together, audit and valuation present a complete and reliable map of your company's financial position.

Valuation

Advisory Valuation Services in the Republic of Azerbaijan

Our valuation experts provide professional valuation services for the preparation of financial statements, tax planning, investment decisions, and risk management.

Value can exist in many forms — whether in tangible or intangible business assets, investments, or intellectual property.

In today's multifaceted global economy, where opportunities exist at every level, it is extremely important for companies to properly evaluate whether these opportunities or operations will increase their value.

That is why valuation plays a key role in decisions such as mergers and acquisitions, tax structuring, dispute resolution, corporate restructuring, accounting, and financial reporting.

The valuation process can sometimes be controversial and subjective.

Therefore, a consistently objective and independent approach is required — this approach must be professional, well-reasoned, and able to withstand any review.

Recent changes in the global business environment have also made the application of professional valuation practices necessary.

At ALC, we provide full valuation support to our clients involved in merger and acquisition activities.

Based on the deep knowledge of our expert team, we consider not only the characteristics of a specific country or sector, but also the strategic goals of our clients regarding the transaction.

This client- and context-specific approach allows us to carry out the valuation process in a commercially effective and purposeful manner.

The following services are included in our valuation activities:

1. 1. Company Valuation Based on Entrepreneurial Initiatives
   • Purchase and sale of companies
   • Mergers and creation of joint ventures
   • Formation of companies based on tangible (e.g., real estate, buildings, machinery, vehicles, equipment, inventory) or intangible assets (e.g., patents, licenses, brands, software)
   • Capital increase based on tangible or intangible assets
   • Fairness Opinions — Independent expert assessments on whether the price and terms of a transaction (merger, acquisition, share purchase) are financially fair. These opinions are provided to shareholders, boards of directors, and other stakeholders to assist in evaluating the financial fairness of a deal and to enhance transparency and reduce legal and financial risks.
2. 2. IPO (Initial Public Offering)

   An IPO is the process of offering a company's shares to the public for the first time. This allows the company to raise capital from the market, improve its financial capabilities, and increase its visibility. An IPO also enhances transparency and improves governance quality.

3. 3. Contract-Based Company Valuation

   Valuation of a company based on agreements between parties

   • Entry or exit of shareholders – determining the company's value during share transfers
   • Calculation of compensation amounts based on corporate law
   • Valuation in inheritance disputes – assessment of company shares or assets
   • Valuation in family law disputes (e.g., during divorce) – especially to determine company share values in asset division
4. 4. Legally Regulated Company Valuation
   • Compulsory exclusion of minority shareholders — This process involves the mandatory removal of minority shareholders from a company. It must be legally justified, fair, and based on proper procedures.
   • Management and profit-loss sharing agreements — Define how the company is managed and how profits or losses are distributed, especially during mergers or structural changes
   • Integration processes — Coordination and alignment of companies after mergers or acquisitions, aiming for synergy and stronger market position
5. 5. Company Valuation in Dispute Cases
   • Expert opinions for court submission — Independent valuations prepared for court use in legal disputes
   • Expert opinions for arbitration — Valuations used in arbitration processes
   • Reports and opinions for involved parties — Custom valuation reports tailored for parties in a legal dispute
6. 6. Valuation According to Accounting Standards (Balance Sheet Rules)
   • Valuation of investment shares — determining the value of equity held in other companies
   • Impairment tests — checking if the value of assets, especially intangibles, has decreased
   • Purchase price allocation — assigning portions of the purchase price in compliance with international or local accounting standards (e.g., HGB, IFRS)
7. 7. Valuation of Tangible and Intangible Assets

   This includes determining the value of assets owned by the company that contribute to revenue generation:

   • Trademarks – Brand value
   • Customer base and relationships – Income-generating customer loyalty
   • Licenses – Exclusive legal rights
   • Usage rights – Temporary rights to use assets
   • Patents – Protected innovative ideas
   • Software – Revenue-generating digital assets
   • Real estate – Land and buildings
   • Property, equipment, and inventory – Tools used in production and operations