Goodwill Impairments Impacted By High Interest Rates
As interest rates remain high, companies may need to become more mindful about corporate goodwill.
VRC Leaders to Present at M&A Science Spring Summit
Patel, Sapnas and Mellen will delve into the state of valuation in 2024 and share insights into the current market environment.
Intangible Asset Valuation for Tax Purposes
Dive into the complexities of valuing intangible assets for tax purposes and unravel the differences between Fair Market Value and Arm’s-Length Standards.
The Practice and Potential Pitfalls of Using Non-Competes to Reduce Tax Exposures Associated with Golden Parachutes
The value of a non-compete may help lower the tax bill, but it needs to be appropriately valued to avoid potential scrutiny by tax authorities.
Can I Use My 409A Valuation Report for a Gift or Estate Tax Filing?
The short answer is that you can use a 409A valuation report for a gift/estate tax filing, and you may get away with it if you’re not audited. You shouldn’t.
VRC Named Valuation Firm of the Year by M&A Turnaround Awards
Honored by The M&A Advisor Awards for Valuation Firm of the Year!
Inflation Driving Commercial Property Insurance Value Reassessments
As inflation reshapes commercial property values, uncover insights driving companies to reevaluate insurance needs with a replacement cost analyses.
2024 Deals Outlook and Valuation Trends
In the year ahead, expectations are for transformative deals by increased cross-border activity, a positive private equity outlook, ESG considerations, global tax changes, and more.
Stock Options & ASC 718: Consider Total Ramifications
The top six issues you need to address when issuing share-based compensation.
Xavier Love
Donald Jacobs
Pay vs. Performance Disclosure Requirements
Unlock the complexities of the SEC’s Pay vs. Performance Disclosures to seamlessly navigate the regulatory landscape and set the stage for a confident proxy season.
The ASC 842 Lease Accounting Implementation Saga Continues
Explore the ongoing saga of ASC 842 lease accounting implementation, including its impact on private and public companies. Learn about practical shifts, clarifications, and the challenges of determining the incremental borrowing rate (IBR) as VRC offers a dual methodology approach.
Molly Shepard
VRC Receives Top M&A Advisor Honor: Valuation Firm of the Year 2023
Firm receives top industry honors for the eleventh consecutive year.
Audrey Wellesley
Sean Poynton
Matthew McCloskey
Estate Planning Valuation Considerations for Privately Held Businesses Preparing for Sale
Business owners preparing for a sale but still needing to execute their estate plan may see beneficial opportunities in using a common estate planning tool.
Pay vs. Performance Disclosure Requirements: Expected term of option grants, simple or not?
Addressing the challenge of developing and supporting the expected term used in the Black-Sholes Option Pricing Model to determine fair value of grants to PEOs and NEOs.
Elvis Lima
Aaron Ping
Wayne Tucker
SEC Requires Pay-Versus-Performance Fair Value Disclosures
Public company filer disclosures must provide added color on the full scope of executive compensation packages, changes in fair value of equity awards issued principal and named executive officers.
Charles Chen
Dan Di Tomaso
Kevin Gawron
Evaluating Private Company Lease Accounting Options Under ASC 842
The holiday is nearly over for many private companies with significant right-of-use assets meaning companies will need to adopt ASC 842 effective Jan. 1, 2022, in preparation for their first calendar year-end reporting date.
Cheryl Cheng
Goodwill: What’s Really Happening & What Comes Next
In this webinar, a panel of leading minds from VRC, Calcbench, CFA Institute, and Financial Reporting Advisors discuss why and how goodwill matters.
Akshay Arora
Oleg Pesterev
Do Impairment Indicators Exist?
In analyzing four factors that will likely incur increased audit scrutiny, do patterns emerge that can indicate impairment?
Dan Hwang
Magdalena Keller
Tax and Financial Reporting Differences in an Allocation of Purchase Price
One of the key differences in valuations for tax vs. financial reporting lies in the definition of value.
Joe Lee
Machinery & Equipment Valuations: Understanding the Importance of a Site Inspection
Three machinery & equipment valuation engagement scenarios highlight when a site inspection is required.
Huan Shu
Eugene Wu
Presiyan Lazarov
Steven Nguyen
Why VRC?
Why do public companies, private equity firms, and asset managers rely on VRC for their critical valuation and advisory service requirements?
Andrew Willis
Join the VRC Team
Watch and learn why VRC is a great place to work!
FASB Implements Improvements to Deferred Revenue Accounting in Acquisitions
New FASB guidance allows companies to apply the revenue recognition standard (ASC 606).
With $3.6 Trillion in Goodwill on the Books of U.S. Companies, Panelists Argue Attention Must Be Paid
The continued growth of goodwill raises the stakes for U.S. & international standards setters considering changes to the way companies account for the assets.
Jeffrey Parrish
Connor Barrett
Tom Gottfried
Matthew Colligan
Bryson Miller
SEC to SPACs: Blank-Check Path to IPO, Warrants, Disclosures Have Liability Risk
The SEC has been clear. They will continue to keep a close watch on SPAC filings and disclosures and their private targets.
Alex Clark
Talia Pawluk
Anshumita Agrawal
What Is a Global Brand Worth?
Before making a purchase, acquirers should make sure a plan is in place to maximize the value of the acquired brand.
Shri Shetty
Bryan Browning
Considering Brand Value: What’s In a Name?
Any brand valuation presents a strategic planning opportunity to understand more about what drives value to the underlying company.
Shea Delmar
Tailor Tanner
In Flux: The Current State of Goodwill & Impairment
As public companies enter the traditional fourth-quarter impairment testing period, two big question marks are hanging over the market…
Paul Nyland
Jeffrey DeLorenzo
Economic Obsolescence: Discover loss of value caused by external factors
Identifying, measuring,and applying the adjustment for EO can be a complex and iterative process.
Jeff Dugo
COVID Impact on Non-Control Equity Holdings
Both public and private companies carrying minority equity stakes at cost under FASB ASC 321 may need to fair value them due to COVID-19.
New World Order Valuations
Developing valuations in a COVID-affected economy means taking new, altered views of a company along with making industry analysis de rigueur.
Ready. Set. IP-whoa.
Valuations are a requirement throughout the IPO process. Management teams are well-advised to seek professional expertise early to avoid missteps and save time, efforts, and cost.
Garrett Sullivan
Rollover Equity for Private Equity Deals
Valuation considerations for rollover equity in PE platform acquisitions.
Top 10 Drivers to Enhance Company Value
Now is an ideal time for private company owners to focus on factors that will improve their business value in the event of an opportunity to sell.
The SEC’s Not-So-Gentle Reminder: Show Your Work
The SEC is making it a priority to focus on impairments related to COVID-19.
Avoiding Valuation Surprises in M&A
Not every company uses the same method for valuation. Recently, VRC and one of its key partners shared insight into their valuation “secret sauce.”
Seth Eatman
Dan Brodzik
Adopting Fresh Start Reporting when Emerging from Bankruptcy
Even with a massive infusion of federal funding for businesses, a rise in bankruptcies is beginning.
Bulls vs. Bears vs. a Pandemic: How do Control Premiums Change?
In market downturns, can we anticipate the impact on control premiums? VRC analyzed the data.
Measuring Triggering Event Impacts and Subsequent Impairment Testing
Some of the most significant financial consequences of the pandemic and other triggering events can be seen in both current and coming company disclosures.
Best Practices in Accounting for M&A Transactions (Part 2)
In the second episode of VRC’s video series, we discuss non-controlling interest in private equity deals and step acquisitions.
Does My Early-Stage Company Need a Third-Party Valuation?
If your company is on a trajectory towards success, now is the time for a valuation consultation about the required analysis and support to take risk off the table.
Cross-Border Tax Planning and Asset Transfers
How have in-house tax executives transitioned valuation considerations to mission-critical?
Best Practices in Accounting for M&A Transactions (Part 1)
In the first episode of VRC’s video series, we discuss determining the purchase price allocation in the deal, earnout structures, rollover equity, non-controlling interest in PE deals, and step acquisitions.
Podcast: Navigating Intangible Asset Valuation
Patel: In today’s environment where companies are more intangible asset-based rather than tangible asset-based, there’s probably an evolution that needs to happen in terms of how you value inventory.
Sarit Rapport
Pablo Alfaro
Older & Wiser: The Evolution of 409A
As startups stay private for longer periods of time, their common stock valuation (409A) history is likely to be scrutinized if they pursue an IPO.
Dwight Grant
Rollover Equity: Don’t Just Take It At Face Value
Several factors, including the rights and preferences of the rollover equity compared to the private equity sponsor’s shares and the sources of deal financing, have important implications for valuation.
Lucy Lee
The State of Goodwill & Impairments
A video discussion about corporate goodwill, goodwill impairment, and financial analysis techniques that aid in determining if a business combination is living up to performance expectations.
How to Win Your Fantasy Football League? Use Valuation Methodologies!
Want to crush your fantasy football championship? Take a page out of a valuation professional’s playbook.
Understanding Tax Amortization Benefit Considerations and the International Impact
Tax amortization benefit rules differ between countries, and they can also change over time.
What’s the Haircut? Determining the Fair Value of Deferred Revenue
When managing deferred revenue, the valuation challenge is defining the performance obligation.
Personal Image Rights: A Tax Evasion Update
Revisiting the outcomes of two high-profile tax evasion cases involving image rights.
Charles Costa
Dhaval Jani
Sean Woodward
Nathan Emanuel
Valuation Takeaways From Market Volatility Spikes
Market volatility spikes prompt considerations of appropriate methodologies for factoring market indications into valuations and reflection on when “smoothing” techniques should be employed.
Chris Coleman
Q1 2019 Economic Snapshots
Quick-hit visual summaries of the leading economic and financial indicators in major economic markets.
Samuel Roman
The Evolution of the Distributor Method
Originally considered a unique approach to determining the fair value of customer-related assets, the method has become mainstream methodology and evolved into a foundational analytical tool.
Transfer Pricing Has Changed
Changes for related-party transactions, especially among subsidiaries of multinational corporations, make updated transfer pricing studies a necessity to justify the charges, often including royalty rates, for these transactions.
Contingent Consideration: Practical Pointers for Earnouts in Business Combinations
Contingent consideration can salvage a business combination when buyer and seller can’t agree on value, which is especially true in a frothy deal environment with high valuations and overpayment concerns.
ASC 842 Lease Accounting: Simplifying the Incremental Borrowing Rate Debacle
Implementation of the ASC 842 lease accounting standard is putting companies in a challenging position to determine their applicable incremental borrowing rate.
Real vs. Personal Property: Distinguishing Between the Two Can Impact Property Tax
Tax benefits exist for companies that distinguish real versus personal property. However, legal nuances, if interpreted inaccurately, can bring significant economic consequences.
Ryan Werkheiser
Podcast: Tax Reform’s Impact on Valuation
Nearly a year since the Tax Cuts and Jobs Act was signed, there are still a number of questions about how to apply the new law but some areas, such as valuation, are beginning to get some clarity.
Personal Goodwill: Hunting & Bagging an Elusive, Tax-Advantaged Prey
Allocating a portion of proceeds from the sale of assets of a private company to the personal goodwill of a major shareholder can result in significant tax benefits to buyer and seller.
Podcast: Valuations in M&A
“We’ve come a long way in terms of determining how to calculate fair value.”
Oil & Gas
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.
Financial Sponsor: Hedge Fund
A hedge fund client held convertible note in a company that restructured outstanding debt. As part of restructure, the note was exchanged for two separate Term Loans.
Tax Reform Flips International IP and Tax Structuring into Reverse
VRC has noticed an emerging phenomenon: U.S.-based multinationals are taking steps to move intellectual property back into the U.S.
Devon Martineaux
Charitable Gift Valuations Before Business Sale
During robust M&A cycles, donor-advised funds tend to become popular philanthropic vehicles.
Kevin Hagemeier
Introduction to a Refined Approach to Inventory Valuation
With limited authoritative guidance around inventory valuation best practices in business combinations, these modifications may improve the valuation process.
Energy
We were retained by an energy production company whose subsidiary acquired distressed energy assets from an energy & production company. In selecting a valuation methodology, we needed to consider the significant divergence in the enterprise value of the business versus the un-discounted value of the assets given the dramatic drop in commodity prices at the time.
What’s In A Name? For Luxury Brand Valuations, Everything
In the high-end luxury market, where virtually all of an enterprise’s value derives from its brand or brand portfolio, the ability to accurately assess its value – to quantify and render tangible the intangible – is especially critical.
The Value of Valuation Research Group
Our experience includes foreign and multinational acquisitions of all sizes in nearly every industry.
Mercedes Falcon
Image Rights: Valuable Intellectual Property
The cult of celebrity and “Image Rights” receive a lot of publicity – and consequently the attention of tax authorities.
Podcast: Valuation Challenges in Accounting for M&A
Companies will need to take more ownership of their valuations.
The Only Legal Requirement for Fairness Opinions
California Corporations Code Section 1203 requires an affirmative fairness opinion to provide target shareholders with greater protection in takeover transactions.
Market Multiple Adjustments
Benchmarking and adjusting market multiples for multinational company valuations by focusing on growth, risk and profitability.
Section 2000: Alternatives to Private Company Dissolution
Those seeking dissolution under California Corporations Code Section 2000 need to understand the role of appraisers as well as the ramifications of the standard and premise of value.
The Impact of the 2017 Tax Act on Business Valuation
Q&A: How is the Tax Cuts and Jobs Act impacting company value and valuation approaches?
Adriana De La Mora
What Directors Consider During Takeover Talks
What issues must board members contemplate when facing a competitor’s takeover offer?
Michael Park
Keys to Avoiding Failed M&A Deals
50 percent of M&A deals fail. How can a board avoid deal failure before an acquisition?
Financial Reporting Valuations
Valuations to make confident decisions & support evolving financial reporting standards
Technology
A PE-sponsored cloud based provider granted equity compensation incentives to executives. To comply with financial reporting requirements of Accounting Standards Codification 718 (ASC 718), the provider engaged VRC to determine the fair value of the issued units.
Benjamin Lawrence
Consumer Products
A brand valuation that estimated the fair value of intangible assets acquired in a business combination was needed by a personal care product company for the sale of its branded and private label products.
Financial Sponsor: Private Equity
A technology company was purchased by large private equity investor. With the purchase price set, the new entity was capitalized with debt and three different types of equity securities.
Larry Van Kirk
Heather Tullar
Jason Storbeck
Steven Schuetz
Charles Sapnas
Anthony Pumphrey
Caroline Puiggali
Neal Piper
Doug Peterson
Parag Patel
PJ Patel
Jacquelyn Marsac
Wes Nichols
Jane Myung
Chad Myers
Jason Mutarelli
Joseph Mickle
Kevin Meyers
Chris Mellen
Philip Mastil
Francis Mainville
Anthony Law
Christopher Krapfl
Neil Kelly
Shakespeare James
Glen Hartford
Edward Hamilton
Vincent Flaherty
Jason DeFazio
John Czapla
Scott Crockett
Jerry Coyne
Jim Budyak
Daniel Brunow
Paul Bourke
John Bintz
Kent Amarante
Tangible Assets: Real Estate & M&E
Valuations for real estate, real property, machinery & equipment, lifing studies and more
Pre-Acquisition
When considering an acquisition, management teams need accurate valuations of the target’s assets & liabilities
Mergers & Acquisitions
ASC 805 & ASC 350 make it critical for buyers & sellers to consider how a transaction impacts financial reporting
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
Goodwill Impairment
Annual impairment testing services supporting ASC 350 compliance, including underlying assets associated with reporting units
Equity Compensation
Companies need valuations for various forms of equity-based compensation. Early-stage companies need a valuation health-check, pre-IPO
Allocation of Purchase Price
Under ASC 805, a PPA analysis allocates the purchase price into acquired assets and liabilities
Tax and Dealmaking
A valuation partner who understands the role and responsibilities of the tax professional can bridge solutions to meet acquisition objectives.
Managing Deal Stakeholders
Valuations need to meet the requirements of all stakeholders – corporate development, financial reporting & tax. Can it be done?
Deal-Related Accounting Implications
The role of the CFO and the corporate controller’s group continues to grow and evolve into a critical position with the deal team.
Manufacturing
An industrial property consisting of various manufacturing machinery & equipment was a candidate for an ad valorem tax reduction.
Stakeholder Alignment
Whether it is the original deal price, accounting related issues, or tax-related issues, you really have to have all of those parties on the same page, speaking the same language and communicating. Valuation is at the center of that.
Michael Ardizzone
Paul Balynsky
Goodwill Hunting: Elimination of Step 2 & the Implications for Public Companies
The FASB has sought to simplify the accounting for goodwill impairment for several years.
Pharmaceuticals
In order to comply with Accounting Standards Codification 815 (ASC 815), an early stage pharmaceutical company asked VRC to analyze the entire convertible callable note and determine the fair market value of each of the embedded derivatives.
FASB Issues Accounting Standards Update Clarifying the Definition of a Business
Within the ASU guidelines, there are two main thresholds to determine if an entity is a business.
Best Practices for Valuing Contingent Consideration
VRC continues to see many transactions where contingent consideration has been present.
Technology
A private equity sponsored cloud based provider of manager content, enterprise lending services granted certain management incentive units to participating executives, as compensation to incentivize management performance.
Preparing for FASB Changes to Revenue Recognition and Lease Accounting
FASB guidance addresses inconsistency and weakness in existing revenue recognition and lease accounting requirements.
Agribusiness
A leading commercial agribusiness client in Argentina was interested in selling their company, which was focused on cultivating and producing olive oil, table olives and wines.
Can Your Business Have a Range of Value?
Did you realize that your business has multiple values at the same time?
International Case Study: Valuing Distressed Energy Assets
In 2015, oil prices plummeted, which had a profound effect on the value of oil & gas and energy companies.
VRG: Our International Capabilities
We invite you to meet our international affiliate team and learn more about the depth of our capabilities and expertise.
Equity Incentive Awards Based on Total Shareholder Return
Share-based payments have led to boardroom creativity around an equity incentive award’s design, prompting developments in valuation approaches.
Key Value Drivers in Wealth Management Firms
Wealth management is human capital driven, which is measured through the financial operating results of the business.
IPO Readiness: Valuation Issues Related to Taking a Company Public
Valuation considerations must be managed carefully to minimize the time, effort and costs of the IPO filing process.
Techniques for Valuing Carried Interest
In receiving value only if a threshold is met, carried interests have an asymmetric payoff similar to a stock option.
Accounting’s 21st Century Challenge: How to Value Intangible Assets
How do you attach a price tag to something you can’t see or touch?
Transfer Pricing Rules Have Implications for Intellectual Property Valuation
The OECD is moving in a direction similar to the U.S. in tightening controls.
Why Private Companies Should Look Into Valuations
Why should a private company board consider a valuation of the company?
Financial Sponsor: Hedge Fund
A shareholder of a closely-held hedge fund was not receiving the appropriate level of compensation per agreement with the controlling interest shareholder.
Valuing Carry
IRS regulations and the past performance of the management team are among the considerations needed to value carried interest rights
Distributor Method: An Alternative Technique for Valuing Customer Relationships
A point often overlooked is that customers usually purchase products or services because of the presence of intellectual property, not a relationship.
Valuing Carried Interests
The asymmetric nature of carried interests requires the consideration of a range of scenarios.
Valuing the Panama Canal for Insurance Purposes
How do you place a supportable value on a major landmark like the Panama Canal?
Pre-Acquisition Valuation: Intangible Assets and Contingent Consideration
In several instances, the knowledge gained from valuation support in the due diligence phase results in modifications or cancellations of transactions.
M&E Assets: Determining the loss of asset value from functional obsolescence
Determining the fair value of M&E assets for financial reporting purposes should include the consideration of three forms of depreciation: physical, economic and functional.
Valuations Offer Support for Ad Valorem Tax Savings
A valuation of the property in question, obtained from an independent valuation provider, is critical to building an ad valorem case.
Functional Obsolescence: Loss of Asset Value Caused By Inefficiency or Inadequacies
A prudent investor will either implicitly or explicitly consider FO in the determination of a purchase price for the entire business.
Healthcare
Property taxes were levied on only real property portion of a hospital, key to analysis was separating the value of the business ops from that of real property.
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.
Golden Parachute Payments Under Section 280G
Golden parachute payments may be made to disqualified individuals contingent upon a change in control.
Automotive
A client who designs, engineers, and manufactures value-added products and systems for automotive and light-vehicle manufacturers acquired an automotive components manufacturer.
Market Participant Acquisition Premiums
When valuing a business, determining the control premium is a significant, and often controversial, issue.
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.
Major Tax Issues Impacting Private Equity Firms
Various forms of executive compensation have become popular, resulting in much scrutiny, particularly in how these forms of compensation are taxed.
Challenges in Valuing Contingent Consideration
ASC 805 provides guidance for whether it is contingent consideration or compensation.
PCAOB Comments Increase Auditor Scrutiny of Fair Value Measurements
Auditors have increased scrutiny around management forecasts which provide the foundation for valuation methods based on an income approach.
Chemical
A leading international producer of nitrogen products acquires a nitrogen manufacturing company requiring a valuation for allocation of purchase price according to ASC 805.
Become Fluent in Factors for Valuing Multinational Companies
When valuing a business that is multinational in scope, develop a proper due diligence framework and apply models that will accurately reflect the company’s exposure to various risks.
Carried Interest Popular Form of Incentive Compensation
Since carried interest is tied to performance, it is an effective way for employers to recruit and retain employees.
Valuing a Minority Shareholder’s Common Stock Amid Capital Restructurings
Valuing investments in private companies requires a flexible approach.
What’s the Value of My Business or Asset? It Depends…
Many factors of a business must be considered when answering the question “what is the value of my closely held business.”
Using the Distributor Model to Value Customer Relationships
The distributor method is a powerful tool for the valuation of customer relationships in situations where these relationships are a supporting asset and where there are appropriate market inputs.
Pre-Acquisition Valuation Key Step in Due Diligence Process
Identifying and valuing intangible assets in advance of a purchase has become a valuable step in the due diligence process.
Legislation Increases Benefits of Cost Segregation Studies
By employing a cost segregation study, a significant portion of a property may be reclassified to a shorter life category.
Valuation Integral to Sec. 409A Requirements
The valuation of a development-stage company’s common stock is best estimated using the methods in the Practice Aid.
Telecommunication
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.
Professional Services
VRC was asked by the attorneys representing the seller to provide multiple common stock valuations on a retrospective basis that would withstand a Big 4 audit review under tight deal closing deadlines.
Practice Issues Pertaining to Sec. 409A
In the original Practice Aid, there was no mention of the back-solve approach. Since then the technique has come into widespread use.
How Do You Put a Price Tag on the Panama Canal?
How Do You Put a Price Tag on the Panama Canal?