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.
Patel, Sapnas and Mellen will delve into the state of valuation in 2024 and share insights into the current market environment.
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 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.
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.
Honored by The M&A Advisor Awards for Valuation Firm of the Year!
As inflation reshapes commercial property values, uncover insights driving companies to reevaluate insurance needs with a replacement cost analyses.
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.
The top six issues you need to address when issuing share-based compensation.
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.
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.
Firm receives top industry honors for the eleventh consecutive year.
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.
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.
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.
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.
In this webinar, a panel of leading minds from VRC, Calcbench, CFA Institute, and Financial Reporting Advisors discuss why and how goodwill matters.
In analyzing four factors that will likely incur increased audit scrutiny, do patterns emerge that can indicate impairment?
One of the key differences in valuations for tax vs. financial reporting lies in the definition of value.
Three machinery & equipment valuation engagement scenarios highlight when a site inspection is required.
Why do public companies, private equity firms, and asset managers rely on VRC for their critical valuation and advisory service requirements?
Watch and learn why VRC is a great place to work!
New FASB guidance allows companies to apply the revenue recognition standard (ASC 606).
The continued growth of goodwill raises the stakes for U.S. & international standards setters considering changes to the way companies account for the assets.
The SEC has been clear. They will continue to keep a close watch on SPAC filings and disclosures and their private targets.
Before making a purchase, acquirers should make sure a plan is in place to maximize the value of the acquired brand.
Any brand valuation presents a strategic planning opportunity to understand more about what drives value to the underlying company.
As public companies enter the traditional fourth-quarter impairment testing period, two big question marks are hanging over the market…
Identifying, measuring,and applying the adjustment for EO can be a complex and iterative process.
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.
Developing valuations in a COVID-affected economy means taking new, altered views of a company along with making industry analysis de rigueur.
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.
Valuation considerations for rollover equity in PE platform acquisitions.
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 is making it a priority to focus on impairments related to COVID-19.
Not every company uses the same method for valuation. Recently, VRC and one of its key partners shared insight into their valuation “secret sauce.”
Even with a massive infusion of federal funding for businesses, a rise in bankruptcies is beginning.
In market downturns, can we anticipate the impact on control premiums? VRC analyzed the data.
Some of the most significant financial consequences of the pandemic and other triggering events can be seen in both current and coming company disclosures.
In the second episode of VRC’s video series, we discuss non-controlling interest in private equity deals and step acquisitions.
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.
How have in-house tax executives transitioned valuation considerations to mission-critical?
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.
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.
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.
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.
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.
Want to crush your fantasy football championship? Take a page out of a valuation professional’s playbook.
Tax amortization benefit rules differ between countries, and they can also change over time.
When managing deferred revenue, the valuation challenge is defining the performance obligation.
Revisiting the outcomes of two high-profile tax evasion cases involving image rights.
Market volatility spikes prompt considerations of appropriate methodologies for factoring market indications into valuations and reflection on when “smoothing” techniques should be employed.
Quick-hit visual summaries of the leading economic and financial indicators in major economic markets.
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.
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 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.
Implementation of the ASC 842 lease accounting standard is putting companies in a challenging position to determine their applicable incremental borrowing rate.
Tax benefits exist for companies that distinguish real versus personal property. However, legal nuances, if interpreted inaccurately, can bring significant economic consequences.
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.
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.
“We’ve come a long way in terms of determining how to calculate fair value.”
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.
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.
VRC has noticed an emerging phenomenon: U.S.-based multinationals are taking steps to move intellectual property back into the U.S.
During robust M&A cycles, donor-advised funds tend to become popular philanthropic vehicles.
With limited authoritative guidance around inventory valuation best practices in business combinations, these modifications may improve the valuation process.
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.
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.
Our experience includes foreign and multinational acquisitions of all sizes in nearly every industry.
The cult of celebrity and “Image Rights” receive a lot of publicity – and consequently the attention of tax authorities.
Companies will need to take more ownership of their valuations.
California Corporations Code Section 1203 requires an affirmative fairness opinion to provide target shareholders with greater protection in takeover transactions.
Benchmarking and adjusting market multiples for multinational company valuations by focusing on growth, risk and profitability.
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.
Q&A: How is the Tax Cuts and Jobs Act impacting company value and valuation approaches?
What issues must board members contemplate when facing a competitor’s takeover offer?
50 percent of M&A deals fail. How can a board avoid deal failure before an acquisition?
Valuations to make confident decisions & support evolving financial reporting standards
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.
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.
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.
Valuations for real estate, real property, machinery & equipment, lifing studies and more
When considering an acquisition, management teams need accurate valuations of the target’s assets & liabilities
ASC 805 & ASC 350 make it critical for buyers & sellers to consider how a transaction impacts financial reporting
Categorized as marketing/brand, customer, artistic, contract or technology-based assets, must be valued under ASC 805 & ASC 350
Multinational firms pursuing M&A strategies face additional international financial & tax reporting requirements
Annual impairment testing services supporting ASC 350 compliance, including underlying assets associated with reporting units
Companies need valuations for various forms of equity-based compensation. Early-stage companies need a valuation health-check, pre-IPO
Under ASC 805, a PPA analysis allocates the purchase price into acquired assets and liabilities
A valuation partner who understands the role and responsibilities of the tax professional can bridge solutions to meet acquisition objectives.
Valuations need to meet the requirements of all stakeholders – corporate development, financial reporting & tax. Can it be done?
The role of the CFO and the corporate controller’s group continues to grow and evolve into a critical position with the deal team.
An industrial property consisting of various manufacturing machinery & equipment was a candidate for an ad valorem tax reduction.
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.
The FASB has sought to simplify the accounting for goodwill impairment for several years.
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.
Within the ASU guidelines, there are two main thresholds to determine if an entity is a business.
VRC continues to see many transactions where contingent consideration has been present.
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.
FASB guidance addresses inconsistency and weakness in existing revenue recognition and lease accounting requirements.
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.
Did you realize that your business has multiple values at the same time?
In 2015, oil prices plummeted, which had a profound effect on the value of oil & gas and energy companies.
We invite you to meet our international affiliate team and learn more about the depth of our capabilities and expertise.
Share-based payments have led to boardroom creativity around an equity incentive award’s design, prompting developments in valuation approaches.
Wealth management is human capital driven, which is measured through the financial operating results of the business.
Valuation considerations must be managed carefully to minimize the time, effort and costs of the IPO filing process.
In receiving value only if a threshold is met, carried interests have an asymmetric payoff similar to a stock option.
How do you attach a price tag to something you can’t see or touch?
The OECD is moving in a direction similar to the U.S. in tightening controls.
Why should a private company board consider a valuation of the company?
A shareholder of a closely-held hedge fund was not receiving the appropriate level of compensation per agreement with the controlling interest shareholder.
IRS regulations and the past performance of the management team are among the considerations needed to value carried interest rights
A point often overlooked is that customers usually purchase products or services because of the presence of intellectual property, not a relationship.
The asymmetric nature of carried interests requires the consideration of a range of scenarios.
How do you place a supportable value on a major landmark like the Panama Canal?
In several instances, the knowledge gained from valuation support in the due diligence phase results in modifications or cancellations of transactions.
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.
A valuation of the property in question, obtained from an independent valuation provider, is critical to building an ad valorem case.
A prudent investor will either implicitly or explicitly consider FO in the determination of a purchase price for the entire business.
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.
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 may be made to disqualified individuals contingent upon a change in control.
A client who designs, engineers, and manufactures value-added products and systems for automotive and light-vehicle manufacturers acquired an automotive components manufacturer.
When valuing a business, determining the control premium is a significant, and often controversial, issue.
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.
Various forms of executive compensation have become popular, resulting in much scrutiny, particularly in how these forms of compensation are taxed.
ASC 805 provides guidance for whether it is contingent consideration or compensation.
Auditors have increased scrutiny around management forecasts which provide the foundation for valuation methods based on an income approach.
A leading international producer of nitrogen products acquires a nitrogen manufacturing company requiring a valuation for allocation of purchase price according to ASC 805.
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.
Since carried interest is tied to performance, it is an effective way for employers to recruit and retain employees.
Valuing investments in private companies requires a flexible approach.
Many factors of a business must be considered when answering the question “what is the value of my closely held business.”
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.
Identifying and valuing intangible assets in advance of a purchase has become a valuable step in the due diligence process.
By employing a cost segregation study, a significant portion of a property may be reclassified to a shorter life category.
The valuation of a development-stage company’s common stock is best estimated using the methods in the Practice Aid.
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.
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.
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?