WELCOME TO CNC VALUATIONS
Creative Studies to suit all needs.
This type of report should ultimately answer whether a project should be initiated. Historically it was the “rubber stamp” developers used to get their projects funded.
In essence it is a two part study, the first part relates to market research in order to understand the demand and supply factors and the second is the projected financial performance. If appropriate a sensitivity study is conducted in order to test the veracity of the inputs within the financial model.
In a close to perfect market that report would suffice, however in our experience that is rarely the case, markets change and it is unusual that initial projections reflect reality upon completion. In order to overcome this inherent shortfall of these studies we perform periodic reviews of the study so that changes can be adapted to as quickly as possible to reflect any changes within the market circumstances. In certain instances where there have been quick and dramatic changes, the periodic review allows for the consideration to adapt to other uses within the project or to alter the offering.
As with any new project, it is the avoidance of unexpected issues that lead to projects concluding successfully. It is the failure to be able to adapt to changes that result in projects falling short of their desired target. This is why we are usually involved from the pre-design phase through to post completion.
The complexity of this study varies significantly depending on the options being studied.
The overall purpose of this study is to fit together uses that complement each other and dovetail well, the point is to focus on the overall success of the project rather than focusing on each individual component. So whilst it may seem that a particular sector is out-performing the others, it does not necessarily mean that this use should be focused on exclusively. The answer depends on what will make the overall project successful.
Generally this study is conducted for greenfield sites, however in numerous instances we have guided clients on redeveloping their portfolios and therefore reflecting the changes within a micro-market. This study has three main sections, the first is the market related, the second section relates to the financials of the project and the main section is the consolidation of the other two sectors in order to present the overall view of the project.
Where mergers and acquisitions are being finalised, part of the process is to ensure that allocations are made correctly and in an understandable and logical manner. PPAs are normally conducted where the transactions are significant and complex, they generally attempt to quantify the amounts for both tangible and intangible assets. Typical classes of assets include tangible assets, trademarks, operating entities and goodwill.
The premise is to accurately allocate the purchase of the whole into the correct divisions that make up the whole.