In insolvency proceedings, the certified valuer is one of the most important players. This role is fulfilled by understanding the impact that the outcome of the valuation has on the decisions that the parties involved have to make for the companies concerned.

FairValue has considerable experience in valuing assets in insolvency proceedings.
The team includes licensed valuers who are also insolvency practitioners, making it easy to understand the steps involved in the proceedings. As authorised valuers, we must comply with both the Asset Valuation Standards and the legislation in force at the time of valuation. Before proceeding with the valuation of the debtor's assets, an understanding of the procedural stage the company is in is essential. After identifying the stage in the proceedings, following discussions with the insolvency practitioner, we determine the type of value (market value and/or liquidation value) to be estimated and the premise under which the value will be estimated.

For example, according to the SEV, liquidation value can be determined in two premises: orderly sale or forced sale. Differences between market value and liquidation value in the forced sale assumption can be significant. It is therefore very important that the type and assumptions of value are discussed and agreed with the insolvency practitioner before the valuation starts. The law requires valuation reports to be drawn up during the insolvency proceedings, at several stages of the proceedings.

At the observation stage,the judicial administrator analyses the legal and property situation of the company to determine whether there are real prospects for saving the company, on the basis of a reorganization plan, or, where appropriate, whether the company needs to be wound up, as it can no longer be revitalised.