Case Study

Financial Reporting and Balance Sheet Valuation for Manufacturing Company

Brief

Early on in 2020 the assets of SPX International Ltd were purchased.

SPX is an organisation assisting industries from oil and gas to water and chemical processing with flow control technology. SPX is an international company with offices and plants within North America, Europe, the Middle East and Asia. Of the five sites, the major facility which PEIL have acquired major trade and assets from is the SPX International Ltd site in Newbury.

The assets involved ranged from machine tools, fabrication equipment, office equipment and Leasehold Improvements.

Work

An integral part of the purchase price allocation involved Hickman Shearer being requested to perform a Fair Value valuation of the tangible assets at all five sites.

This involved detailed reviewing in order to arrive at our opinion of the Fair Value of the Subject Assets. To achieve this we adopted the market and cost approach as the method of valuation.

Outcome

As a consequence of our work, our valuation was used in the purchase price allocation and within the statutory accounts. In addition, our work was successfully reviewed by the Clients auditor.

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