Valuation Perspectives From Around the World
Increased analysis within financial reporting comes with increased levels of analysis required for tax reporting.
Increased analysis within financial reporting comes with increased levels of analysis required for tax reporting.
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.
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.
Key highlights, discussions, and resources from our experience at the 2024 Heckerling Institute event, from a valuation professional’s perspective.
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.
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.
Group suggests ways to improve the IRS’ Revenue Procedures governing Advance Pricing Agreements and Mutual Agreement Procedures.
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.
In this webinar, leaders from VRC and Global Tax Management discuss how to ensure that business restructurings and reorganizations meet the relevant business and tax objectives.
Access updates on BEPS Pillar Two, the OECD-sponsored overhaul of global tax regimes.
In this webinar, valuation and tax experts discuss tax considerations, methodologies, limitations on NOLs, and financial statement considerations & disclosures under Section 382.
One of the key differences in valuations for tax vs. financial reporting lies in the definition of value.
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!
Identifying, measuring,and applying the adjustment for EO can be a complex and iterative process.
Developing valuations in a COVID-affected economy means taking new, altered views of a company along with making industry analysis de rigueur.
Sweeping changes to the utilization of NOLs have occurred as a result of the Coronavirus Aid, Relief & Economic Security Act (CARES Act) in 2020.
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?
Tax amortization benefit rules differ between countries, and they can also change over time.
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.
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.
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.
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.
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.
New tax laws in Argentina promotes investment, represents a significant change for U.S. companies doing business in the region and results in new tax value of assets.
Our experience includes foreign and multinational acquisitions of all sizes in nearly every industry.
Because of regulatory pressures, Employee Stock Ownership Plan trustees should implement a peer-review process for ESOP valuation reports.
The cult of celebrity and “Image Rights” receive a lot of publicity – and consequently the attention of tax authorities.
The continued popularity of ESOPs remains a tax-efficient approach to selling company stock.
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 did the 2017 Tax Act change that would impact estate planning?
Consulting & planning services to meet tax reporting & compliance needs
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.
Changes in corporate structure or ownership, a bankruptcy or a recapitalization can trigger the need for a valuation
NOL carryforwards are a valuable asset & ownership or equity changes can trigger a valuation requirement
Support for litigation, developing & providing direct testimony, arbitration and depositions
U.S. domestic & global tax laws require valuation experts who understand the intricacies of tax reporting
Valuations are key to assisting business owners who are ready to transition their business
Feasibility studies, valuations, transaction design & structuring for Employee Stock Ownership Plans (ESOPs)
Valuation can provide the basis for the cost segregation exercise & resulting acceleration of depreciation deductions
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.
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.
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?
VRC performs fairness opinions in connection with newly forming ESOPs and annual ESOP valuations.
We invite you to meet our international affiliate team and learn more about the depth of our capabilities and expertise.
In receiving value only if a threshold is met, carried interests have an asymmetric payoff similar to a stock option.
The OECD is moving in a direction similar to the U.S. in tightening controls.
A shareholder of a closely-held hedge fund was not receiving the appropriate level of compensation per agreement with the controlling interest shareholder.
In reality, many businesses are a perfect fit for ESOPs.
A valuation of the property in question, obtained from an independent valuation provider, is critical to building an ad valorem case.
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.
Valuation allowances are one of the areas frequently challenged by auditors.
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.
Before considering a deal, it’s helpful to have a clear understanding of the three common methodologies used to value private businesses.
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.
Many factors of a business must be considered when answering the question “what is the value of my closely held business.”
Sec. 338 elections take two forms: the Sec. 338 (g) election, used for foreign acquisitions, and the Sec. 338(h)(10) election, used in domestic cases.
By employing a cost segregation study, a significant portion of a property may be reclassified to a shorter life category.
When a company embarks on an international restructuring, it is extremely important to consider the impact of Section 367.
When valuation is important for tax purposes, breakdown by legal entity is key since each has its own tax identity and related tax consequences.
Multinational companies face several compliance and planning issues.
In the case of a U.S. acquisition of a foreign target, it was oftentimes beneficial to make a Section 338(g) election.
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.
The impact of the investor model is that it essentially guarantees a return to the intangibles developer for its efforts.
Obtaining a valuation from an independent valuation provider is essential to proving that the security has no liquidating value.
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.