PKF MEF-Audit offers consulting services on all types of appraisal: independent appraisal of all types of property and property rights, cost consulting, and business planning for project financing purposes. We have garnered extensive appraisal experience for transactions, financial borrowings, tax and financial accounting, for IFRS and insurance purposes, and for collateral monitoring and analyzing data for forensic examinations.
PKF MEF-Audit applies the Internal Standard "Assessment of Quality Control" created on the basis of international and federal assessment requirements.
Our employees are certified by the Association of Russian Masters of Appraisal, Self-regulatory Interregional Association of Appraisers, Russian Society of Appraisers, National Board of Expert Appraisers. Our specialists are qualified appraisers and analysts with more than 5 years of experience. Owing to their rich negotiation experience, our team can secure your competitive edge in respect of pricing, capital investment terms, and improving the investment attractiveness of your business.
As a professional appraiser, PKF MEF-Audit is a partner to the Russian Agricultural Bank, VTB Group, Vnesheconombank, Russian Railways, Transcapitalbank, Moscow Credit Bank, and the Mono-Town Development Fund. We have extensive practical experience in the appraisal of all types of assets.
Our Company has gained considerable experience in preparing appraisal reports for various purposes, as well as in appraising foreign assets.
PKF MEF-Audit offers services for preparing asset appraisal reports for property sale transactions. We provide appraisal services for the following:
- Acquisition of shares in the authorized capital of joint-stock companies and existing companies.
- Intellectual property (patents, trademarks, know-hows).
- Special-purpose real estate as part of investment projects (production facilities, agricultural properties, land plots).
Our team is highly experienced in appraisal for financial borrowing purposes, including bank financing against pledge of assets. As an appraiser, PKF MEF-Audit is certified by Russian Agricultural Bank, VTB Group, Vnesheconombank, Moscow Credit Bank, Transcapitalbank, allowing for a significantly shorter period for processing the customer’s application to the credit committee.
Due to the growing overdue debt, banks now pay greater attention to secondary sources of loan repayment, including the collateral. In reality, they often face the drawbacks of the collateral mechanism, caused by errors in appraisal of the loan security and imperfection of its monitoring. We provide a complete range of collateral monitoring services for the purpose of:
- checking the availability, classification, and location of property;
- checking whether the qualitative and quantitative parameters of property comply with collateral agreements;
- checking whether the property storage and/or operating conditions comply with collateral and loan agreements, including checking and inspecting the property to ensure their compliance with the property storage requirements;
- developing proposals regarding measures to be taken to increase the liquidity of property;
- identifying the risks of loss of, damage to, and shortage of, property, and developing proposals regarding prevention measures;
- visual inspection of property to identify changes in consumer appeal and other characteristics;
- conducting a preliminary analysis of possible value of property.
Collateral monitoring provides an objective appraisal of the collateral portfolio and minimizes risks for pledge holders.
Based on our experience, market value appraisal is necessary in case of gratuitous receipt of fixed assets, intangible assets, and during tax registration of assets identified by taking inventory of property. Quite often, the price of transactions to sell property or transactions between affiliated companies belonging to the same group may become the subject of legal proceedings. The more specific the subject of the transaction is, the more reasons tax authorities will have to suspect an understatement of the taxable base. In this case, the appraisal report is a tool minimizing the client’s tax exposure. PKF MEF-Audit has great experience in preparing reports for tax accounting purposes and successful representation of clients in courts during tax-related disputes.
We are happy to provide you with professional support in calculating the value of your business or assets, including appraisals and expert examinations of value for financial reporting purposes (IFRS, RAS). Today, many Russian companies are switching to International Financial Reporting Standards (IFRS), as global financial markets require a uniform approach to the application of accounting and audit standards. Thus, financial statements should be prepared based on modified initial (historical) value. The concept of fair value is being used increasingly more often. We provide services in appraisal of fair value of fixed assets and intangible assets, and appraisal during business combinations (IFRS 3).
- Appraisal of fixed assets and investment property (leased real estate, non-traded equity instruments: shareholdings and shares in the authorized capital).
- A business combination (IFRS 3 Business Combinations) during the purchase price allocation (PPA) includes appraisal of assets and liabilities to determine the value of goodwill reflected in the consolidated statements.
- Annual mark to market valuation, impairment tests for fixed assets, investment property, and non-traded equity instruments.
- Mandatory appraisal of derivative instruments or financial assets available for sale.
Property insurance helps protect your assets against potential risks. Our team has successful experience in preparing expert opinions and reports following expert examinations for SOGAZ, LIDER, Soglasie Insurance Company, RESO-Garantiya, Renaissance Insurance Group, AlfaStrakhovianie, and other leaders of the Russian insurance market. We have prepared over 500 expert examination reports. PKF MEF-Audit’s Insurance Survey Department provides services both for the survey (pre-insurance risk survey) of energy and other large industrial facilities subject to insurance and for the insurance survey of events bearing the indications of insured events, which includes:
- inspecting insured property;
- establishing the fact, reasons, and conditions of such events;
- determining the nature and size of the damage caused or its absence;
- determining the circumstances giving rise to claims or objections from the parties.
Our team offers its successful experience in forensic examination. Our expertise covers the following types of disputes:
- division of property;
- damage reimbursement;
- recovery of lost profit;
- security for loans;
- contestation of transactions during bankruptcy;
- contestation of taxes charged;
- all types of property disputes.
Real estate appraisal includes a calculation of both the value of property and individual rights thereto. This type of appraisal covers land plots, subsoil plots, separate water bodies, forests, long-term plantations, buildings, structures, and everything closely connected with land. This category also includes air and sea vessels subject to state registration, inland vessels, and space facilities. Appraisal of real property is required in the following cases:
- execution of the transaction for the sale and purchase or lease of premises, buildings;
- project and secured lending;
- contributing real properties to the authorized capital of companies during the development and efficiency evaluation of investment projects;
- liquidation of real properties;
- exercise of inheritance rights, execution of court orders, settlement of property disputes (including divorce cases);
- appraisal of the starting price for auctions and tenders for the sale and lease of properties (including arrested, confiscated, and derelict) for sale as part of enforcement procedures;
- privatization, nationalization, trust management, assignment of debt obligations, acquisition of property from owners for state or municipal needs or in connection with other operations related to the disposal of titles to real estate.
We have extensive experience in appraisal of assets of commercial value, involved in disputes, conflicts, risk of loss, losses, or inefficient management. Such assets may be financially or legally encumbered. Appraisal of troubled assets is intended mainly for identifying risks facing financial organizations, associated with the ownership of those assets, possibility of the borrower’s repayment of borrowed funds, and the correct formation of asset pools for subsequent sale. The calculation of the value of such assets is closely connected with the value of the security pledged to the lending institution. Professional appraisal of loan collateral enables making the most effective decisions in the settlement of issues related to troubled debt.
Intangible assets should be appraised during their contribution to the authorized capital of a company, during sale and purchase transactions or signing license agreements in respect of intellectual property, during the calculation of the reimbursement amount, as well as for reporting them in the accounting records, as intellectual property ensures future benefits for its owner by being transformed into a marketable product. PKF MEF-Audit provides appraisal services for the following types of intangible assets:
- copyrighted items;
- damage caused by unlawful use of various types of intellectual property.
The appraiser requires data on the quantitative and qualitative parameters of the appraised item and its economic use.
We provide support in raising finance, both for projects at the concept stage and long-existing companies looking for further development. Preparing a document package, ensure integrated structuring and further support of the investment project, thereby considerably improving the chance of a positive decision of the credit committee, which is our main goal in this business line. Owing to the many years of successful collaboration with Russian lending institutions and our rich trade experience, our experts can solve these tasks with high professionalism, supporting projects of any complexity.
To obtain project financing
- pre-design analysis: evaluation of the project concept, financial and economic potential, market opportunities, methods and size of financing, collateral, logistics and supplies, competitiveness and viability of the company, relevance in the long-term perspective, distribution markets, search for technology partners and vendors, analysis of main competitors, comparative analysis of various project implementation scenarios.
- Financial model: key growth indicators, weak spots of the project, subject to their ongoing improvement, additional research with the involvement of bank representatives; the completed financial model undergoes approval with bank experts and is corrected as needed.
- Business plan: a key investment document for potential creditors, providing a complete view of the project, product, or technology. It contains a detailed description of the marketing strategy and production plan, a clear rationale behind financial and performance indicators, and a description of risks and mitigation options.
- Evaluation of the project effectiveness for the creditor bank, description of the company and market situation, description of the product or service, marketing strategy, production plan, financial indicators, effectiveness calculation, risks and mitigation options, possible additional research, approval of the business plan with the bank’s representatives.
- Project promotion: selection of potential investors (partners), mailing proposals to our client base, as well as based on a selected segment of potential investors.
For companies looking for additional investments.
- Collateral monitoring: classification and location, conformity to collateral agreements, property storage and operating conditions, development of measures to improve liquidity, risks of loss, damage, deficiency, visual inspection, analysis of potential value.
- Preparation of a package of documents in accordance with the requirements of lending institutions: investment memorandum and presentation based on the appraisal, feasibility study, business plan, and other documents substantiating the borrowing, execution and filing of application for credit resources.
- Technology audit: substantiation of production parameters of the project, analysis of the estimates at the request of the lending bank, additional research, preparation of reports and their approval with the bank’s experts.
- Appraisal for the purpose of raising finance: interaction with lending banks, preparation of appraisal reports, development of possible scenarios of business optimization and efficiency improvement.
Banks, funds, investors
- Support for investment projects at all stages of their implementation: preparation and expert examination of investment projects, business plans, investment calculations.
- Market analysis of investment projects: analysis of the market potential, consumer demand, correct substantiation of input market parameters, such as prices for products and sales volume, preparation of reports.
- Support for the creation of joint ventures
- Support for debt restructuring
- Cost consulting, various types of appraisal
The appraiser requires data on the quantitative and qualitative parameters of the appraised item and its economic use.