Business Valuations

Independent business valuations matter when decisions turn on what a business is worth — and when that view has to stand up to counterparties, boards, shareholders, tax authorities, auditors or the courts.

ConsultX prepares purpose-led valuations for South African businesses across transactions, restructuring, regulatory and reporting support, due diligence, dispute contexts and strategic planning. We combine financial analysis, market context and professional judgement to produce clear, defensible valuation outcomes.

Valuations are purpose-led: the standard of value, assumptions and report depth are tailored to why the valuation is needed.

What we do

We deliver independent, professionally prepared valuations that support real commercial and compliance decisions — not abstract model outputs that leave the hard questions unanswered.

Typical assignments include:

• section 42 asset-for-share and other restructuring valuations
• valuation support for SARS- and SARB-related share and asset transfers
• IFRS reporting valuations, including IFRS 2 and rolling fair-value work
• independent expert valuations in legal and dispute matters
• buy-side and sell-side due diligence valuations
• sale and purchase discussions, shareholder buy-ins and buy-outs
• financing conversations, lender support and strategic planning

Work is grounded in CA(SA)-led finance judgement, with methods and assumptions documented so the conclusion can be explained and defended.

Section 42 asset-for-share restructuring

Section 42 of the Income Tax Act allows qualifying transfers of assets to a South African resident company in exchange for equity shares, on a tax-deferral (rollover) basis when the statutory requirements are met. In practice, parties and their tax advisors need reliable market-value evidence of the assets transferred and, where relevant, of the shares issued — including that market value is not below base cost where that is a condition of relief, and that values support a commercial value-for-value exchange.

ConsultX provides independent valuation support for section 42 and related restructuring workstreams. We do not replace your tax or legal advisors; we supply the valuation analysis those advisors and the business need to document and implement the transaction with confidence.

What we typically need

• transaction purpose, structure outline and effective date
• asset schedules, financial information and ownership details
• forecasts or supporting commercial context where cash-flow based methods apply
• any existing tax, legal or accounting advice that frames the valuation brief

What you get

• a clear market-value conclusion for the assets and/or equity interests in scope
• documented methods, assumptions and limitations suitable for advisors and boards
• analysis framed for restructuring use — incorporation, group reorganisation or ownership realignment — not a generic sale valuation reused without purpose

SARS and SARB compliance for share and asset transfers

Transfers of shares and assets — especially between related parties, or with a cross-border element — often need valuation support that stands up to SARS scrutiny and, where exchange control is relevant, to Authorised Dealer and SARB Financial Surveillance expectations. Pricing is frequently tested against arm’s-length and market-related principles; inadequate documentation can delay deals, complicate filings or weaken the taxpayer’s position if values are later challenged.

ConsultX prepares independent valuations and supporting analysis that management and advisors can use when evidencing transfer values for tax and exchange-control processes. Scope is agreed with your tax, legal and banking advisors so the report answers the questions those processes actually raise.

Typical support includes

• fair market value of shares or business interests for transfer, contribution or disposal
• asset and business valuations that underpin related-party or restructuring transfers
• clear write-ups of methods and key assumptions for packs submitted to advisors, Authorised Dealers or other stakeholders
• updates or refresh valuations where timing, structure or information has moved since an earlier view

We phrase conclusions as professional valuation opinions for the agreed purpose. Tax treatment, exchange-control approvals and filings remain the responsibility of the client and their appointed advisors.

IFRS annual reporting — including IFRS 2 and rolling valuations

Boards, audit committees and auditors need valuation inputs that are consistent with the reporting framework and usable in the annual financial statements. That includes share-based payment measurements under IFRS 2, and periodic (rolling) fair-value or impairment-related valuations of businesses, equity interests or assets where the reporting timetable requires updated numbers each period.

IFRS 2 share-based payments

Where employees or others receive equity instruments or cash-settled awards linked to share value, IFRS 2 requires measurement by reference to fair value — typically at grant date for equity-settled awards with employees, with cash-settled awards remeasured as the liability evolves. Unlisted entities often need a valuation model rather than an observable market price.

ConsultX provides grant-date and, where required, ongoing valuation inputs for options, shares and related instruments — including documented assumptions (for example volatility, dividends, expected life and vesting conditions) that finance teams and auditors can review.

Asset and equity rolling valuations

For reporting cycles that need recurring fair values — investments, non-controlling interests, management reporting packs or impairment support — we set a repeatable approach: agreed methodology, information checklist and timetable so each update is consistent with the last, not a one-off rebuild.

Outputs

• valuation memos or reports aligned to the reporting purpose and measurement date
• assumption schedules suitable for audit file support
• practical explanation for management of what moved period to period

Independent valuation expert in legal matters

Disputes over price, oppression, divorce of business interests, warranty claims, earn-outs or failed transactions often turn on what the business or shares were worth at a particular date. Courts, arbitrators and opposing experts expect a reasoned, independent view — not advocacy dressed up as a model.

ConsultX acts as an independent valuation expert for legal and dispute contexts. Engagements are scoped with instructing attorneys so the question of value, the valuation date, the standard of value and the documents relied on are clear from the outset.

How we support legal teams

• independent valuation reports suitable for negotiation, mediation, arbitration or litigation support
• critique or response work where another party’s valuation needs testing
• clear separation of facts, assumptions and judgement so the opinion can be tested under scrutiny
• availability to explain methodology to counsel and, where instructed, in formal proceedings

We remain independent of the outcome. Our role is to form and explain a defensible valuation opinion on the brief agreed with your legal advisors.

Due diligence valuations

In acquisitions, disposals and investment rounds, parties need more than a headline multiple. Due diligence valuations test whether the price under discussion is supported by the quality of earnings, forecast credibility, working capital, debt-like items, customer concentration, asset condition and risk.

ConsultX provides valuation support within buy-side or sell-side due diligence — either as a focused valuation workstream or alongside broader financial review.

What we focus on

• bridge from normalised earnings or free cash flow to enterprise and equity value
• sensitivity of value to key commercial and financial drivers
• identification of value risks and upside that should inform price, structure or warranties
• a concise valuation view that deal teams can use in negotiation and investment committee packs

Outputs

• due diligence valuation analysis with clear base case and scenarios
• documented adjustments and open questions for management or the counterparty
• practical commentary on how diligence findings affect value — not a black-box number

How these services support owners and management

Valuation work is only useful if it helps the people who own and run the business make better decisions and leave a clearer trail when others will test those decisions.

For owners

• a credible, independent view of value when selling, buying in partners, restructuring or settling shareholder matters
• documentation that supports tax, exchange-control and deal processes without relying on informal estimates
• clearer negotiation ranges grounded in methods and assumptions that can be explained to buyers, co-shareholders and advisors

For management

• reporting-ready inputs for IFRS, boards and auditors — including IFRS 2 and rolling fair-value updates
• diligence and transaction analysis that links commercial reality to price
• dispute and restructuring support that reduces ambiguity when timelines are tight and stakes are high

Across these areas, ConsultX aims for the same standard: purpose-led scope, transparent analysis and a conclusion leadership can use with confidence.

How we work

1. Brief

Confirm purpose, standard of value, valuation date, timeline and information needs. Agree what the report must support — restructuring, compliance packs, reporting, diligence, negotiation or dispute — so scope and depth match the decision.

2. Analyse

Assess historical performance, forecasts, risk and market context. Review the quality of the numbers, key value drivers and the commercial story behind the projections. For reporting and compliance work, align measurement date and assumptions to the framework or process in play.

3. Value

Apply appropriate methods such as discounted cash flow (DCF) and complementary market-based approaches. Where instruments or assets require specialised models (for example share-based payments), use techniques suited to that measurement. Test scenarios so stakeholders can see how conclusions respond to changes in growth, margins, risk and capital structure.

4. Report

Deliver a clear valuation conclusion with supporting analysis. Reports are written for practical use by boards, advisors, auditors and counterparties — with methods, assumptions and limitations set out plainly.

Experience behind the work

ConsultX valuation work sits alongside broader finance, assurance and asset experience, including:

• business valuations for restructurings, shareholder matters and M&A contexts
• asset valuations and project stage-of-completion reviews on large capital projects
• project governance, cost controls and capital project assurance
• IFRS and commercial finance judgement across manufacturing, industrial, engineering, logistics and related sectors

That background matters: valuation conclusions are stronger when they are informed by how assets, projects and finance processes actually behave in practice.

Who it’s for

Business owners, investors, boards, management teams and advisors needing an independent valuation for restructuring, SARS- or SARB-related transfers, IFRS reporting, due diligence, dispute support, sale/purchase discussions or strategic decision-making.

If you need a clear, defensible view of value — and a report that explains how you got there — we can scope a practical next step.