VRC’s History and Culture:
From founding to future

VRC acquires Corporate Appraisal and later American Valuation Consultants, expanding its office footprint to include Chicago, Princeton, Cincinnati, and Los Angeles. The acquisitions more than double the size of the firm, and the team’s expertise focuses on the financial and tax reporting requirements for machinery & equipment, industrial real estate, and rapidly growing areas of the M&A market, notably intangible assets, proprietary technology, and purchase price allocation requirements. VRC’s quick turn and efficient capabilities in the M&A arena put VRC on the map as clients quickly realize the critical resources it can deliver.

VRC is engaged for the purchase price allocation in the $425 million acquisition of Fairchild Semiconductor, a Silicon Valley manufacturing pioneer in transistors and integrated circuits, by Schlumberger, an oil field services company. At the time, this acquisition is one of the largest deals witnessed in the M&A market.

With the change of various federal tax laws and U.S. economic events impacting stricter appraisal requirements within the M&A space, VRC launches its Fairness & Solvency Opinion practice group and becomes one of the first firms to provide expert opinions to assist boards in fulfilling their duties. The firm has since rendered over 1,500 solvency, fairness, and other board-level opinions.

VRC expands to become a national organization with ten offices across the United States. The firm’s most measurable practice group segment focuses on commercial and industrial real estate valuations for large, middle-market companies and significantly sized developments, primarily in the manufacturing, retail, and franchise business sectors.

VRC delivers a solvency opinion to the stakeholders of Southland Corp. and 7-Eleven, the largest U.S. operator of convenience stores, in its $4 billion leveraged buyout deal.

VRC, along with fellow originating member firms based in Argentina, Brazil, Mexico, Spain, the United Kingdom, and Venezuela, founds Valuation Research Group, a global network of valuation professionals. The combined expertise of VRG’s members aligns to deliver deep expertise in mergers, acquisitions, divestitures, restructuring, capital markets, financial and tax reporting matters, all delivered on an international scale and designed to meet a country’s audit, financial reporting, and tax jurisdiction requirements.

As the firm enters the new millennium, Mark Brattebo and Bill Hughes are named co-CEOs. In sharing the firm’s leadership, Mr. Brattebo focuses on building, growing, and nurturing the firm’s entrepreneurial spirit and culture. Under his purview, the firm embraces new and growing market trends recognized by emerging professionals, and the firm implements and develops the Complex Securities and Portfolio Valuation practice groups in the years ahead. Mr. Hughes focuses on the leadership of VRG and other strategic growth initiatives, as well as client relationship building.

The firm’s governance adjusts, shifting into an internally directed model managed by the Executive Committee, comprised of the firm’s two co-CEOs and Chairman of the Board, Neil Kelly. This creates a flat organizational model aligning expectations and rewards for all VRC team members, encouraging all employees to harness their strengths within the firm’s framework, and allowing all to have a role in its success.

The firm’s new Portfolio Valuation practice group launches to harness VRC’s experience in delivering fair value estimates for thousands of traditional corporate, private equity, and private credit investments. As the private markets expand significantly in subsequent years, the organically built practice group, under the leadership of John Czapla in the mid-2000s, grows to boast the largest and most experienced team when measured against valuation industry peers. The practice group would later expand its financial and technical capabilities to provide valuations for structured products, complex instruments, real estate, traditional and renewable energy, infrastructure, and venture capital, all delivered domestically and into continental Europe and Asia.

VRC is engaged by Goldman Sachs to perform its first recurring portfolio-level valuation assignment for Goldman’s first mezzanine funds.

VRC’s offices grow with the opening of three more brick-and-mortar offices located in Cincinnati, San Francisco, and Tampa.

VRC delivers a solvency opinion supporting Sony, Providence Equity, Texas Pacific Group, Comcast, and DLP Merchant Banking Partners’ acquisition of MGM.

Apollo and GSO Capital (now Blackstone Credit) engage the VRC Portfolio Valuation practice group for credit fund valuations.

The firm refreshes its brand and image by unveiling a new logo, brand design, and voice as a full-service, independent valuation and advisory services firm.

The Panama Canal Authority (Autoridad del Canal de Panamá, or ACP) engages VRC to deliver a comprehensive valuation for the Panama Canal as a supportable basis of value for the canal’s expansion project. ACP later engages the firm in 2014 to conduct on-site tangible asset valuations for the Canal’s locks, dams, power plants, and other structures for insurance purposes. At over 100 years old, this globally significant landmark is still considered one of the largest and most difficult engineering projects ever undertaken, benefiting world trade.

Ares Capital engages VRC’s Portfolio Valuation practice group to value its credit-focused, publicly traded business development company.

VRC is engaged by Kraft Foods (now KraftHeinz and Mondelēz International, Inc.) to support its $7.8 billion acquisition of Groupe Danone’s global biscuit business. Various international VRG members assist with meeting regional requirements and on-site inspections of material fixed assets and major manufacturing plants in Europe, Africa, China, and Asia. Group Danone’s biscuit business included nearly 60 brands, and operations and assets in more than 20 countries, including 32 manufacturing facilities.

Mark Brattebo steps down from his co-CEO role, as PJ Patel assumes this role leading VRC’s East Coast offices. Mr. Hughes continues alongside Mr. Patel as co-CEO, leading VRC’s Central and West Coast offices and VRG. Patel’s specialties in addressing sophisticated financial valuation reporting issues for private equity and corporate clients, work on large multinational corporate acquisitions, and sterling reputation in the valuation industry make the transition seamless. Mr. Brattebo remains on VRC’s Board and continues to serve existing clients until his official 2020 retirement.

VRC acquires Boston-based Delphi Valuation Advisors, Inc., significantly expanding VRC’s team and services in New England and throughout the Northeast. The combined capabilities of the teams provide clients with an even deeper level of skill, experience, and further specialization of services.

VRC opens a new office in Atlanta.

Justin Johnson is named the firm’s new co-CEO, replacing Mr. Hughes, who remains on the Board of Directors, continues leading VRG, and steps into a Senior Advisor role to continue serving clients until his 2023 retirement. As the head of the firm’s Fairness & Solvency Opinion practice group, Mr. Johnson’s progressive leadership style, emphasis on private equity and private equity portfolio company clients, and admirable technical valuation expertise would help position the firm to continue its growth trajectory.

VRC delivers a solvency opinion to PetSmart, Inc. in connection with a dividend of Chewy, Inc. equity.

John Czapla is appointed Chairman of the Board, succeeding Neil Kelly, who continues to serve as Vice Chairman. Mr. Kelly also continues his professional work with VRC’s clients as a respected leader, strong advocate, and mentor of the Transaction and Financial Reporting practice group.

At the height of a global pandemic, VRG celebrates its 25-year anniversary. Since the group’s 1995 launch, the multinational team has gathered annually for a traditional in-person strategic planning meeting. Faced with the social distancing impacts of Covid, the team joins for an immersive online experience, aptly themed “Connection > Distance,” to commemorate the group’s milestone founding.

With more than 60 executives from the 14 member countries present, VRG proves it can face an entirely new world of opportunities as the connection between members is truly greater than the miles separating them. During the group’s three-day meeting, VRG develops an action plan to address the consequences of the pandemic and continues offering client solutions from a stronger-than-ever global positioning.

VRC’s footprint expands once again with the launch of new offices in Dallas and Los Angeles and teams based in Canada and London.