Investment Management and Superannuation Service Valuations
At Lotus Amity we provide investment management and superannuation service valuations. The key intangible assets that we analyse in our valuation process include:
- The funds under management (FUM)
- Customer contracts and relationships
- Key agreements such as administration, management, sponsor, promoter, investment and advisory service agreements
The valuation reports we prepare include granular analysis to support estimated future revenue, such as monthly membership growth and member churn, FUM per member growth and fees as a % of FUM analysis.
To estimate cash flows our valuation reports typically include an analysis of staff levels and staffing capacity, operating margins, ad hoc and project expenses, capital expenditure, working capital requirements, tax losses and industry benchmarking.
The other areas we analyse include the agreement termination risk, changes in government legislation and key man risk.
Experience
Examples of Investment Management and Superannuation service valuation reports prepared by Lotus Amity include:
- Valuation of the shares in a large national group providing promotion, administration and investment management’s ethical superannuation services and investment advisory services. Valuation report prepared to assist in the valuation of shares under the Employee Share Option Plan.
- Valuation of the investment and promoter agreements, the brand, goodwill, assembled workforce and deferred consideration in relation to a superannuation business acquisition. Purchase Price Allocation report prepared for financial reporting purposes.
- Valuation of the fair value of employee Zero Exercise Price Options in a superannuation fund, together with the expected number to vest. Report prepared for financial reporting purposes.
- Valuation of an investment management company. Valuation report prepared for a restructuring and for tax purposes.
Why choose Lotus Amity for valuations?
Granular and comprehensive approach. We provide a granular and comprehensive approach to valuation. This includes modelling cash flows and discount rates and providing fully referenced appendices.
Detailed analysis. Each valuation has a story. We carefully research, analyse and explain each valuation story and how the numbers (the cash flows and discount rate) relate to that story.
Compliance. Our reports comply with the Australian accounting, ethical and valuation standards, the International Valuation Standards and the relevant expert witness requirements.
Quality Control. Each valuation report and model is reviewed for accuracy, completeness and transparency by an external firm of Chartered Accountants and business valuation specialists.