Allocations of Purchase Price

Under Accounting Standards Codification (ASC) 805 (formerly SFAS No. 141 and 141R), an acquirer must recognize any assets acquired and liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at fair value as of that date. Assets most commonly meeting the identification criteria include tangible assets, such as real and personal property, and intangible assets, such as trademarks, technology and customer relationships. Other items regularly valued include inventory, deferred revenues, contingent consideration and noncontrolling interests.

VRC produces opinions of value for both tangible and intangible assets, liabilities and equity interests. Our clients rely on our values in preparing their financial statements and our valuations have withstood the scrutiny of their auditors as well as the Securities and ExchangeCommission and the Internal Revenue Service. For certain clients, especially those who are publicly traded, VRC also provides pre-acquisition valuations. There are multiple benefits to obtaining a pre-acquisition valuation: (1) it assists management in assessing whether a deal is accretive or dilutive; and, (2) it helps management meet the accelerated disclosure requirements mandated in ASC 805.