“Contingent consideration can raise thorny accounting, valuation, and legal issues, but it’s too useful to take off the table.”
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.
Financial reporting in Japan is mostly based on Japanese Generally Accepted Accounting Principles (JGAAP) and International Financial Reporting Standards (IFRS).
As seen in the Jan. 2019 issue of Mergers & Acquisitions magazine, Jeff Miller discusses potential expected trends for PE firms in 2019.
In the Jan-Feb 2019 issue of Deal Lawyers, Chad Rucker focuses on strategies for dealing with conflicts that may exist when a fairness opinion provider also receives an M&A success fee.
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.
All participants in the current M&A frenzy are responsible for understanding deal issues; panelists agreed that valuation experts are an important resource.
A robust economic environment creates optimum valuation opportunities, but even a downturn creates demand for business valuers.