Forest asset valuation and due diligence
Forest asset valuations are needed frequently for accounting purposes, initial public offerings or in mergers and acquisitions. Indufor conducts forest asset valuations according to international standards and best practices. The scope of the valuation can be based on the IAS 41 standard, developed by the International Accounting Standards Board for biological asset valuations. Alternatively, calculation can be conducted using discounted cash flow method for different value components and time frames ie, for establishing the fair value of the growing stock over several rotations or calculating the value of the land separately.
The valuation can also take into account non-timber forest products and ecosystem services.
Indufor applies the most appropriate valuation method depending on the case. If available, a quoted market price in an active market is the best evidence of fair value. However, that is seldom possible and the best estimate of the market price is the value estimated with the discounted cash flow method. There are also other possible methods such as cost replacement approach applied for young forests and liquidation approach applied for mature forests.
- Forest asset valuations
- Due diligence
- Forest resource assessments