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.

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.

Inside View: Valuing Carry

IRS regulations and the past performance of the management team are among the considerations needed to value carried interest rights

Valuing Carried Interests

The asymmetric nature of carried interests requires the consideration of a range of scenarios.

Valuation Requirements for Business Combinations

PJ Patel discusses the valuation requirements in a business combination.

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.

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.

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.