Business Valuation
We evaluate the economic value of unlisted shares and businesses for use in M&A transactions, business succession, stock options, and preferred share issuances.
Coverage Areas (Examples)
Valuation is the exercise of expressing the economic worth of a company, business, shareholding, or intellectual property as a figure, derived from a stated set of assumptions and methods. It is required in a wide range of situations — from M&A price negotiations and business succession to stock option design.
Valuation Methods
We select and apply the right methods — DCF, comparables, net assets — presenting sensitivity to assumptions, not just a single number, so the valuation is usable in negotiation.
Examples： DCF (Discounted Cash Flow) / Comparable Company Analysis (Market Approach) / Net Asset Method (Cost Approach) / Income / Dividend Capitalization
M&A & Business Sales
We provide valuations for M&A — equity and enterprise value, PPA — prepared with an eye to their persuasive force at the negotiating table.
Examples： Share / enterprise value calculation / Carve-out business valuation / PPA (Purchase Price Allocation) / Due diligence support
Startups & Fundraising
We handle valuations for startup capital policy — stock-option fair value, common-stock valuation alongside preferred rounds — kept consistent with tax qualification requirements.
Examples： Stock option fair value (tax-qualified) / Common share valuation for preferred issuance / Pre / Post-money valuation / Fundraising round valuation
Business Succession & Inheritance
We value unlisted shares for succession and inheritance, balancing tax valuation rules with economic reality to avoid later disputes and tax risk.
Examples： Unlisted share inheritance tax valuation / Share transfer pricing for succession / Intra-family / management share transactions / Employee stockholding association valuation
IP & Intangible Assets
We value intangibles — brands, patents, software — including royalty rates and PPA allocations, consistent with accounting and tax requirements.
Examples： Brand & trademark valuation / Technology / patent royalty rate analysis / Goodwill valuation & PPA allocation / Software & data asset valuation
Our Strengths
Multi-Method Rigorous Valuation
Ex-audit firm CPAs apply DCF, market, and cost approaches in combination, producing reports credible enough for board rooms, price negotiations, and tax authorities.
Data Analysis & Sensitivity Testing
We apply statistical and data science methods to comparable analysis and industry multiples, supplemented by sensitivity and scenario analysis to clarify valuation ranges.
Integrated Legal & Tax Support
Valuation never stands alone. With legal and tax work handled within the firm as well, we keep each engagement aligned with those requirements, from valuation through to execution.
FAQ
Q. Can you provide a fair market value assessment to satisfy the requirements for tax-qualified stock options?
Yes — we perform the share fair market valuation needed to set the exercise price for tax-qualified stock options. This is a critical issue for startups, as the tax requirement (exercise price ≥ share fair market value at grant) must be met while reflecting the actual economic reality. We can also support the full process through option plan design and contract drafting.
Q. When should we obtain a valuation in an M&A context?
Understanding your company's value before signing the LOI puts you in a stronger position for price negotiations. On the buy side, a valuation can be used alongside due diligence to verify the appropriateness of the acquisition price. We also handle valuations for post-closing PPA (Purchase Price Allocation) purposes.
Q. Do you handle valuations for SMEs and startups?
Yes — we serve not only large companies but also SMEs and startups across a wide range of situations. We propose an evaluation approach tailored to the scale, stage, and purpose of each engagement, from early-stage companies just after incorporation to mid and late-stage companies preparing for PMI.
Q. What is PPA (Purchase Price Allocation)?
PPA is the accounting process of allocating the acquisition consideration to the acquired assets and liabilities after an M&A transaction, following the business combination accounting standard. Goodwill and separately identifiable intangible assets (customer relationships, technology, brand, etc.) are identified, valued, and reflected in the financial statements. This frequently requires engagement with the audit firm, and we provide support from a CPA perspective with an external auditor mindset.
Q. Can you prepare valuation reports in English?
Yes — we prepare valuation reports in English. These are used where an English-language document is required: reporting to an overseas parent or investors, cross-border M&A, and submission to foreign auditors. We can also provide Japanese and English versions together.
Q. Can your valuation reports be used in tax audits or court proceedings?
Our valuation reports document the underlying data, calculation process, and assumptions in detail, and are written on the assumption that they may need to serve as supporting material in a tax audit or in litigation. That said, a valuation report is an expression of expert opinion and does not bind the tax authority or a court in their final determination.
Get in Touch
We will listen to your concerns and propose the most suitable service. Initial contact creates no contractual obligation.
Contact Us