Situation:

Target Acquisition, Merger Valuation

Due diligence is a critical step in the merger acquisition process to ensure the valuation of the target acquisition is accurate. Since acquisition transactions are based on initial valuations of target organizations and business valuations are based on assumptions, due diligence serves the purpose of verifying the assumptions underlying the attributed value of the acquisition target and identifying unknown material risks involved in the transaction.

Physical assets must be determined to be suitable for intended use, in good working order and not encumbered by third-party liens. So, physical inspections of the physical assets being acquired should be conducted along with searches of the appropriate public records.

Insurance Valuation

Proper protection of assets requires adequate insurance coverage and a professional valuation of the property and inventory of assets, using replacement costs. A detailed accounting of assets accomplished through an independent third-party to include listings and photography is the safest course of action. Thus, in the event of a catastrophic loss such as fire, flood or hurricane or a burglary, there is unbiased documented proof of what was contained within the walls of a property.

Solution:

Global Compliance conducts Asset Verification visits to accurately verify physical assets for organizations in order to determine overall value related to mergers and acquisitions and/or insurance coverage. Through an on-site visit, our highly trained auditors validate physical assets with data recording of serial numbers and photo documentation. We are capable of inventorying and validating a wide scope of assets including things such as:

• Moving vehicle fleets (vehicle count, condition, mileage, etc.)
• Real estate property (location, condition, size, signage, etc.)
• Operational equipment within a property (electronics, preparation and production equipment, etc.)
• Property additions (radio/satellite dishes, covered parking, landscaping, etc.)
• Furniture within a property

Outcome:

Outsourcing the inventory and valuation of assets results in time efficient, cost-effective, and unbiased inventories to ensure asset existence and associated value.