Cancellation of debt can generate significant tax liabilities that can be reduced by demonstrating insolvency. But, without experienced advisors, the process of proving insolvency can be challenging.
Ms. Shepard specializes in valuations of businesses and intangible assets for a variety of purposes, including fair value measurement, allocation of purchase price, impairment testing,…
Mr. Lazarov has over 15 years of experience in valuation advisory spanning from pre-revenue start-ups to late-stage, middle market companies for a variety of purposes…
Mr. Gottfried specializes in business enterprise, credit/debt instruments, equity, intangible asset and portfolio valuations. He has over 15 years of experience in planning, facilitating and…
Bryson Miller leads VRC’s Dallas office. He has provided numerous business, intangible asset, and equity valuations for a variety of purposes, including fair value measurements…
Mr. Delmar specializes in the valuation of machinery and equipment for domestic and international clients. Mr. Delmar has experience in valuations for allocation of purchase…
Identifying, measuring,and applying the adjustment for EO can be a complex and iterative process.
Many businesses hit hard by the current economic shutdown may need to restructure through an out of court workout, a Chapter 11 reorganization, or a Chapter 7 liquidation. In all cases, an objective valuation is a key component.
Even with a massive infusion of federal funding for businesses, a rise in bankruptcies is beginning.
How have in-house tax executives transitioned valuation considerations to mission-critical?
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.
Mr. Nichols specializes in the valuation of machinery and equipment for domestic and international clients. For over 15 years, he has prepared valuations for allocation…
Mr. Flaherty specializes in valuations for financial reporting, incentive compensation, mergers & acquisitions, and tax restructuring/planning purposes. Mr. Flaherty has experience as a valuation advisor…
Mr. Budyak has over 35 years of valuation experience and specializes in allocation of purchase price engagements, fairness and solvency opinions, bankruptcies and restructurings, and…
Changes in corporate structure or ownership, a bankruptcy or a recapitalization can trigger the need for a valuation
A key tax consideration is whether the acquirer will be entitled to a stepped up tax basis in the assets and thus entitled to future tax deductions.
Determining the degree of insolvency is a key step since this will dictate the amount of COD income which may be excluded.
For companies who have not filed for bankruptcy, the insolvency exception is critical.
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.