Valuation Services
Aon Valuation Services provides a single professional solution addressing the full spectrum of valuation and fixed asset needs which our clients today demand in order to comply with corporate governance as well as International Accounting Standards.
Our services cover all industries and businesses throughout the region and include all aspects of fixed assets including but not limited to:
- Plant and equipment for power generation, oil and gas refineries, petrochemicals, palm oil mills, offshore, manufacturing, telecommunications, IT infrastructures, and airport handling
- All type of buildings, civil works and infrastructures.
Our specialists can provide solutions to your tangible assets requirement depending on the type of valuation service you require be it for insurance and/or financial.
Insurance Valuation
Aon Valuation Services looks deeper into the underlying issues that affect the level of insurance cover you need. With our vast experience in insurance valuations, we know that getting it right involves obtaining a deep understanding of our client’s business.
The whole purpose of insurance cover is to put you back in the position you were before the loss. The selection of the correct basis of valuation is important so that the level of cover corresponds to what will be required in reinstating the assets. We understand that every client’s needs are different. Before any valuation is undertaken, we will work with you to discuss your needs to help us understand your requirements.
The three most common “basis of value” are to assess:
- Reinstatement as New/Replacement as New
Current replacement of aged assets – with the purpose of ascertaining a ‘new for old’ valuation figures of the assets. The valuation will reflect the cost incurred to achieve an identical replacement asset but not extensive to the condition when it is new.
This basis of value does not consider depreciation and technological changes.
- Indemnity Value
The current valuation of the assets by which the insured is fully compensated on the basis of an agreed settlement – the actual cash value of what the insured has lost so that he neither gains nor loses as a result of the loss.
- Functional Replacement/Optimised Value
The estimated value of the assets, on the basis of replacement using new and/or modified technology, that would provide the same output but in a more efficient manner.
This basis of value considers technological changes.
Whatever basis the client may choose, getting a professional valuation advice from Aon will provide solutions to the following:
- Accurate Valuation/proven Methodologies - Insurance policies require accurate declaration of asset value if full protection of these assets is to be guaranteed.
- Comprehensive Valuation Programme - Ensures that insurance covers match the insurance risk and remove the risk of underinsurance.
- Acceptable Summary of Assets - provide updated and more detailed summary of assets that is acceptable to the insurers and loss adjustors and, sufficient enough as basis for the Estimated Maximum Loss (EML) assessment.
Ultimately, it will help reduce the exposure of directors, officers and shareholders, who are responsible for the correct sums insured.
Financial Valuation
It is good thing to know that aside from insurance valuation, Aon Valuation Services are equally capable to assist our clients in the assessment of their tangible assets for accounting purposes. Our valuation reports adheres to the International Accounting Standards which is the global framework in financial reporting.
The estimate of value for accounting purposes can be prepared on the following bases:
- Market Value Position (as part of Going Concern to the Business) – this reflects the estimated price that is determined in the context of transaction that is not a forced sale. This basis takes into account the most advantageous market, exchange price in the market and what would be considered by the market participants. This basis is based on arms-length transaction allowing reasonable amount of time for the sale and disposition of the assets.
- Market Value for removal (Orderly Liquidation) – this reflects the residual value of the plant and/or the buildings upon considering the income derived from the sale of the equipment and salvageable materials and after deducting the necessary expenses for the removal and disposition of the assets.
- Market Value for removal (Forced liquidation) – this reflects the residual value of the plant and/or the buildings upon considering the income derived from the sale of the equipment and salvageable materials on the basis of scrap removal or immediate removal and disposition of the assets.
Our valuation assessment can provide solutions or will aid our clients make business decisions, account the true worth of the fixed assets, or allocate appropriate loss provisioning in their books.
These are but not limited to the following:
- Financial reporting (Annual and other statement)
- Sale of businesses
- Purchase of businesses
- Mergers and acquisition
- Decommissioning or discontinued use of assets or the whole facility
- Impairment testing
- Public listings
- Government bodies for privatization.
Our specialists have a wealth of knowledge and experience in a broad range of fields. We can undertake every type of tangible asset valuation an organization requires in its day-to-day operations, including risk management and corporate governance obligations.
Aon Valuation Services provides:
- Authoritative, impartial and comprehensive valuation advice to support your fiscal obligations and commercial negotiations
- Proven valuation methodologies
- Effective and direct reporting
- A team of dedicated valuation specialists with a high degree of practical, technical and business expertise
- Access to Aon’s industry specialists who are experts in your industry.