Valuation of in-kind contribution
Professional development and diligence
We support our clients in the professional development of valuations of in-kind contributions. Contribution in kind is a non-cash investment made to a partnership or a commercial company, which represents an asset value being introduced into the company. Making a non-cash contribution means transferring the ownership of the contributed asset to the company and, obviously, increases the equity of the entity to which the contribution is being made.
The subject of an in-kind contribution may be:
- shares of a company,
- all rights and obligations of a partner in a partnership,
- the entire enterprise, including the enterprise of a sole proprietorship,
- an organized part of the enterprise,
- real estate - land and buildings and structures,
- machinery and equipment,
- means of transportation,
- intangible assets, including trademarks, utility designs, patents, rights to investment projects.
Non-cash contributions can be made to any type of company: civil partnership, general partnership, partnership, limited partnership, limited joint-stock partnership, limited liability company, simple joint-stock company and joint-stock company. The subject of an in-kind contribution to a company (limited liability company, simple joint-stock company and joint-stock company) may not be a non-transferable right.
When making a non-cash contribution to a company, if the non-cash contribution has defects, the contributing shareholder is obliged to compensate the company for the difference between the value adopted in the company's articles of association and the transferable value of the contribution. It should be noted that, in general, transferable value is equated with fair market value and/or fair value. When non-cash contributions are made to a joint-stock company - both at the stage of the company's founding and during a share capital increase - an auditor is appointed to give an opinion as to what the fair value of the non-cash contributions is and whether it corresponds to at least the par value of the shares taken up for them or the higher issue price of the shares. Consequently, carrying out a valuation of in-kind contributions in the right period of time is recommended from the point of view of successfully conducting the project and minimizing the risk of questioning the parameters of the company's capital increase.
From the point of view of the protection of capital in the company, as well as the mutual relations between partners and shareholders, the issue of valuation of in-kind contributions is crucial and fundamental. A professional and objective valuation of the in-kind contribution provides security for determining the equity of the entire company, as well as the parts of equity belonging to individual partners and shareholders. This is of key importance not only in the context of security of cooperation with the company from the point of view of its contractors, but also in the distributions of profits and/or dividends among partners, as well as in the redistribution of assets value in the event of final liquidation of the company.
We support our Clients and prepare for them valuations of all types of in-kind contributions for all types of companies. In particular, we specialize in valuations of in-kind contributions in the form of:
- shares and stocks of a company,
- all rights and obligations in a partnership,
- the entire enterprise, including the enterprise of a sole proprietorship,
- the organized part of the enterprise,
- intangible assets, including trademarks, utility designs, patents, rights to investment projects,
- financial instruments.
When carrying out the valuation of an in-kind contribution, it is crucial to use appropriate approaches and methods that take into account the nature of the asset and its unique characteristics. Our experience in this field allows us to effectively adapt the valuation process to the specifics of each case. Thanks to the professional support we offer in the field of in-kind contribution valuation, our clients can be sure that the entire process will be carried out in accordance with the market professional standards. Working with us, you are guaranteed reliability and professionalism, which is important for considering and making key business decisions.
