Business Advisory

BUSINESS VALUATION

Singapore Incorporation professionals are drawn from a multitude of backgrounds and are able to navigate the barriers of time, language, currency and culture to serve our clients.

With our team of experienced professionals, we will ensure that you receive quality advice which is streamlined and tailored for your business concerns.

The purpose of the valuation is to provide a guide to the value of a company of which you are either a seller or a buyer.

VALUATION METHODOLOGY

To arrive at our assessed value, we will consider three generally accepted approaches, namely:

  • Market Approach
  • Cost Approach
  • Income Approach

The Market Approach considers prices recently paid for similar assets, with adjustments made to market prices to reflect comparative condition and utility of the appraised assets relative to the market. Assets for which there is an established secondary market may be valued by this approach.

The Cost Approach considers the cost to reproduce or replace in new condition the appraised assets in accordance with current market prices for similar assets, with allowance for accrued depreciation or obsolescence, whether arising from physical, functional or economic causes. The Cost Approach generally provides the most reliable indication of value for assets without a known secondary market.

The Income Approach is the conversion of expected periodic benefits of ownership into an indication of value. It is based on the principle that an informed buyer would pay no more for the project than an amount equal to the present value of anticipated future benefits (income) from the same or a substantially similar project with a similar risk profile.

DUE DILIGENCE

Buyers, lenders and sellers involved in mergers or acquisitions must identify the risks and the opportunities associated with a business under consideration. Conducting effective financial and tax due diligence can help buyers and lenders structure strategic transactions and avoid costly mistakes. It can also help sellers better understand the strengths and weaknesses of their positions pursuant to a deal.

Singapore Incorporation provides financial and tax due diligence and transaction support services to buyers, lenders and sellers in a variety of transactional situations. We assist strategic and financial buyers focused on historic and projected financial performance, developing a more complete picture of the financial realities of a target business by reviewing the quality of earnings, conducting integration assessments and assessing the purchase price. Our scope on due diligence work involves performing procedures such as checking, verifying, physical sighting, vouching and third party confirmation (where necessary) to obtain evidence about the amounts as disclosed in the financial statements/management accounts

Our professionals assess the earnings before interest, taxes, depreciation and amortization (EBITDA) commonly used for pricing purposes, and identify the risks related to corporate governance, financial reporting and the accounting environment.

The requirements for financial and tax due diligence may vary considerably depending on the size and complexity of the target, the knowledge of the target’s vendor or its industry sector, and on the size of the transaction in terms of value. Importantly, financial and tax due diligence does not constitute an audit and the extent of verification of information will depend on the requirements of the vendor and the scope of engagement.

We are more than happy to further discuss the scope of our financial and tax due diligence services with your board.

BUDGETING
Budgets and Cash Flow Forecasts

A budget is a plan, which is set out in numbers. It sets out figures that an organization hopes to achieve in the future. For example, a company will create budgets for:

  • Budgeted sales
  • Budgeted production figures
  • Budgeted costs, etc.
Cash Flow Forecast

A Cash Flow Forecast is an estimate of future figures based on experience. You can make forecasts about all sorts of events, e.g. the weather, the likely result of a sports team, etc. In business, you can forecast future sales figures, or the likely cash flow into and out of a business. A business often prepares a Cash Flow Forecast showing the money likely to flow into and out of its bank account in a given period.

Benefits of Budgeting

Budgets are a financial representation of an organization’s strategy. The process of budgeting requires managers to plan ahead, for example, to identify the resources required to meet targets. This is particularly important in the insurance industry due to the complex nature of the products offered. Insurance generally addresses medium- and long-term needs of customers. Decisions taken now are likely to have financial implications for many years to come.

Why Us?

Singapore Incorporation is associated with trust and reliability. Quality is at the heart of our customer-appeal.

However, our appeal is also about innovation and about being an industry leader, both in our operations and when responding quickly to emerging risks and opportunities. This allows 3E to deliver what matters, when it matters.

The budgeting process is a source of competitive advantage. Effective budgeting requires careful research and realistic planning as well as collaboration. It can help to set high objectives or move the business into new territory. The level of ‘stretch’ or challenge in a budget will depend on an organization’s culture and ambition. Some businesses may be prepared to accept a higher risk profile for a better return. This in turn will depend on the influence of key stakeholders, such as shareholders.

To ensure the company has the capability to achieve its aims, Singapore Incorporation employs university graduates and finance professionals who are skilled in managing and interpreting budgets.

IFRS REPORTING

What are the requirements of International Financial Reporting Standards (IFRS)? How does IFRS compare to other accounting frameworks? What do IFRS financial statements look like?

IFRS are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are steadily replacing the many different national accounting standards.

No worries! Contact us today and we can convert your local financial statements to an IFRS report in a day.

FORENSIC INVESTIGATIONS SERVICE

Integrity is fundamental to your business. It affects your company’s reputation. With good reputation, with your customers and employees, the public, regulators and other companies will underpin your success. However, losing reputation can happen in a blink of an eye as well.

How could this happen? Your data is stolen by hackers. Your competitor accuses your sales force of corruption. An argument with your business partner threatens to erode value. An accounting discrepancy undermines market confidence. The media discovers related party transactions in a joint venture.

From what we see here, the changing nature of business has not only created new opportunities, but also new risks and potential threats at the same time. There will be no ends to the risks you face.

Not to forget the rise of potential risks like increasing sophistication of fraud, organized crime and terrorism, more complex legislation and regulations, some with increasing extra-territorial reach, developing challenges in technology, complex cross-border disputes, pitfalls from expanding into emerging markets, dependencies on unfamiliar business partners and more complex supply and distribution channels. Last but not least, theft and misuse of intellectual property.

Prevention is better than cure. Company that is able to monitor effectively and respond swiftly to the problems occurring will allow you to reduce adverse financial, reputational or operational impact, to have advantage with real business benefits.

There are a few areas to be focused in forensic investigations service which are:

Corporate intelligence
  • Integrity due diligence, is to provide information on the background, track record, reputation and integrity of prospective business partners.
  • Investigation support, is to support for fraud, asset tracing and other problem solving investigation
  • Litigation support is to support litigators and counsel in complex international arbitration and litigation.
Dispute advisory services
  • Expert witness services, is the preparation and presentation of expert witness evidence.
  • International dispute resolution, is to assess risks to determine the value of claims and evidence collation.
  • Business and share valuations, serves for share and business valuations in the context of litigation.
  • Forensic transaction services, is to draft/review financial sections of Sale and Purchase Agreements.
  • Alternative dispute resolution, is to act as an expert to assist in accounting related disputes.
  • Competition is to provide advice and guidance on competition issues.
  • Evidence and disclosure management is to capture, process and review large volumes of data and evidence.
Forensic technology
  • Digital Evidence Recovery
  • Evidence and Discovery Management
  • Cyber Crime Investigations
  • Data Analytics
Fraud risk management
  • to conduct assessment of need based on the nature of fraud and misconduct risks and existing controls
  • to design ethics and compliance programs and related anti-fraud controls in a manner consistent with regulatory criteria and industry practices.
  • to implement programs and controls through the assignment of responsibilities and deployment of resources
  • to evaluate program and control effectiveness in achieving their objectives
Global investigation
Intellectual property and contract governance
Regulatory compliance
  • Anti-Money laundering services
  • Anti-Bribery & corruption services

Fees range from S$ 2,800 onwards!

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