|
|
 |
|
|
Challenge
A global food and beverage company (multinational) purchased a young fast-growing manufacturer (target) focused on niche food and beverage products. The multinational engaged VRC to provide a pre-acquisition estimate of the value of the intangible assets in order to determine whether the acquisition was accretive or dilutive to earnings. The multinational also needed the value of intangible assets for its press release (8-k) announcing the transaction and for financial reporting purposes.
Solution
Using proprietary models, VRC developed estimates of the value and life for each intangible asset based on (limited) company data, market data and a review of comparable transactions. The multinational used VRC’s conclusions in order to determine whether the acquisition was accretive or dilutive to earnings. The valuation was first reviewed by management and subsequently reviewed and approved by a Big 4 auditor. The multinational used the results of our analysis in its 8-k filing announcing the acquisition and in subsequent 10-q and 10-k filings with the SEC.
|
|
|
|
