Challenge

A producer of branded personal care products engaged VRC to estimate the fair value of certain intangible assets acquired in a business combination, as per the requirements of ASC 805. The acquired company manufactured a leading brand within its market niche. It also manufactured private label products for a number of its customers.

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Solution

VRC, in cooperation with management, identified the portion of company results that were attributable to the sale of branded and private label products. It then applied valuation techniques to estimate the fair value of intangible assets for each aspect of the business. For the branded products the majority of the intangible assets’ value was ascribed to the brands and with a limited portion attributable to the customer relationships. For the private label portion of the business, the only identifiable intangible asset was the customer relationships.

Consumer Products Services

Alternative Asset Valuations

Complex Securities & Portfolio Valuation Services for Illiquid, Hard-to-Value Securities

Complex Securities

Valuations for complex instruments such as options, warrants, convertible bonds, contingent consideration, preferred & common stock

Equity Compensation

Companies need valuations for various forms of equity-based compensation. Early-stage companies need a valuation health-check, pre-IPO

Fairness & Solvency Opinions

Transaction Opinion Analyses to Ensure Fairness & Financial Adequacy

Financial Reporting Valuations

Valuations to make confident decisions & support evolving financial reporting standards

Goodwill Impairment

Annual impairment testing services supporting ASC 350 compliance, including underlying assets associated with reporting units

Intellectual Property & Intangible Assets

Categorized as marketing/brand, customer, artistic, contract or technology-based assets, must be valued under ASC 805 & ASC 350

International Business Combinations

Multinational firms pursuing M&A strategies face additional international financial & tax reporting requirements

Mergers & Acquisitions

ASC 805 & ASC 350 make it critical for buyers & sellers to consider how a transaction impacts financial reporting

Tax, Compliance & Planning

Consulting & planning services to meet tax reporting & compliance needs

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Other Industries

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Technology

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Financial Sponsor: Private Equity

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Manufacturing

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Pharmaceuticals

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Technology

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Healthcare

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Brands: Food & Beverage

A leading manufacturer of branded food products engaged VRC to estimate the fair value of certain intangible assets acquired in a business combination.

Automotive

A client who designs, engineers, and manufactures value-added products and systems for automotive and light-vehicle manufacturers acquired an automotive components manufacturer.

Consumer Products

​A large multinational consumer products company acquired a South American company operating in the same space. VRC was engaged to estimate the value of the PP&E and intangible assets for financial reporting purposes.

Chemical

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We were retained by a leading provider of wireless messaging and information services to provide various valuation services for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

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VRC provided a required valuation of tangible and intangible assets for a Master Limited Partnership (MLP) client in support of a purchase price allocation. There were no detailed fixed asset records; VRC needed to overcome significant data limitations.