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      Recent increases in US import tariffs and retaliatory actions taken by affected countries in response have had important commercial and economic effects and created significant economic uncertainties that have had knock-on effects on companies and asset valuations. These have been accompanied by policy reversals and conflicting signals which have complicated economic forecasting and corporate planning.
       

      The main uncertainties that businesses are currently facing in the changing global trade climate are examined in this article; these uncertainties have the potential to have a big impact on company valuations.

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      Valuation in a Trade-War World

      A Practical Overview of Tariff Risk

      Effects of Tariffs on Companies and Valuation

        • Revenue
        • Cost increase
        • Exchange rate changes
        • Company valuations
        • Investment plans
        • Accounting effects
        • Increased focus on risks from leverage
        • Corporate transactions

        Effects on Valuation

          • Greater efforts required to understand clients’ plans
          • Discounted Cash Flow (DCF) techniques
          • Discount rate
          • Market approaches
          • Terminal value
          • Caveats
          • Valuation range
          • Valuation date

          Effects on Valuation

            Reliable independent valuations: We provide board-ready advice throughout the deal cycle, delivering fairness opinions, as well as accounting, tax and regulatory valuations, all of which can withstand scrutiny from investors, auditors and regulators.

            Financial modelling and scenario analysis fit for decision-making purposes: We combine in-depth sector knowledge with advanced analytics, simulation tools and visualization techniques to model various tariff scenarios and assess the impact on cash flows, cost of capital and enterprise value.

            Strategic support focused on value: Whether you are financing growth, navigating restructuring, resolving disputes, or setting up value-based management systems, we help you unlock, protect, and maximize value across your organization.


            Our people

            Majid Makki

            Partner and Head of Management Consulting and Technology Advisory

            KPMG in Kuwait


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            KPMG combines our multi-disciplinary approach with deep, practical industry knowledge to help clients meet challenges and respond to opportunities. Connect with our team to start the conversation.

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