By Mashe Umaru Gwamna
An Estate Surveyor and Valuer ESV Peter Eke said Valuation is a vital requirement for companies merger .
He made the disclosure yesterday in Abuja.
Eke stated that valuation for company mergers involves determining the economic value of two or more businesses to facilitate a merger.
He stated that companies merge for different reasons.
“Companies merge for wider branch network. For bigger clientele base, for wider coverage, for stronger capital base, among many others
but the ultimate goal is for both companies to become bigger and stronger together”.
According to him, Valuation of the assets during the merger will help both companies in profit sharing.
“During valuation for merger purpose, each asset is tagged separately and registered in the books individually so that each asset will not be mixed-up at the end of the valuation.
After which, a valuation report is given, which contains total assets valued for each company.”
He explained that the merging of companies should be greatly encouraged so that smaller companies can come together and become big instead of wallowing in smallness.
He noted that valuing their Assets helps to make it easier.
“For example: if company A, the valuer values all the Assets that belongs to the company and also values all the assets of company B, the value gotten from company A and company B will be compared and used for the merger.”
He said it is only an Estate Surveyor and Valuer based on Nigerian law can give value to assets.
He reiterated this and said Estate Surveyors and Valuers are important in the valuation of assets of companies that want to merge because they are the only professionals recognised by law in Nigeria to give value to Assets.
