Brown Smith Wallace. fifnancial advistory services. a measurable difference

SERVICES > VALUATION

The value of a business goes far beyond bricks and mortar. An organization’s intangible assets, including intellectual property, all have value that can – and should – be quantified and analyzed. The Brown Smith Wallace Financial Advisory Services (FAS) team has extensive experience providing valuation services to clients, including publicly traded and privately held corporations, private equity firms, banks, venture capital firms and attorneys.

Our FAS team specializes in providing valuation services related to businesses, common and preferred equity, options, inventory, and intangible assets, including intellectual property. In addition, we specialize in valuing certain liabilities, including deferred revenue, debt, and contingent consideration (earn-outs). In order to provide a complete solution to our clients’ valuation needs, we regularly partner with other national firms who specialize in the valuation of real property and machinery and equipment.

Clients typically hire FAS when an independent, objective, and supportable opinion is required.  We provide high quality, well-supported analysis that is often subject to review and scrutiny by various parties, which may include independent audit firms, banks and other lenders, regulators such as the Securities and Exchange Commission, tax authorities including the Internal Revenue Service, boards of directors, shareholders and potential investors, and tiers of fact, including judges, juries and arbitrators.

Our FAS team renders valuation services for a wide variety of purposes, including the below.

• Financial Reporting – Our valuation services are performed to comply with the fair value requirements under U.S. Generally Accepted Accounting Principles (GAAP) and to a lesser extent International Financial Reporting Standards (IFRS).  Valuations are frequently performed related to impairment testing of goodwill and other assets, acquired intangible and tangible assets, and assumed contingent and other liabilities under business combinations, as well as equity compensation grants.
  • Impairment Testing –Accounting Standards Codification (ASC) 350, Intangibles – Goodwill and Other; and ASC 360, Property, Plant and Equipment
  • Business Combinations – ASC 805, Business Combinations
  • Fresh Start Accounting – ASC 852, Reorganizations
  • Equity Valuations – ASC 718, Compensation – Stock Compensation
     
• Tax Planning and Compliance – Our valuation services can be performed related to both U.S. tax jurisdiction as well as foreign tax jurisdiction regulations.  Many clients do not have the knowledge to perform a credible valuation.  In addition, there are many instances where regulatory “safe harbor” provisions make it advisable for companies to secure an expert, third-party valuation.
  • Asset Acquisitions -– Internal Revenue Code (IRC) Section 1060, Special Tax Rules for Certain Asset Acquisitions
  • Transfer Pricing Studies, IRC Section 482, Allocation of Income and Deductions
  • Equity Compensation Grants – IRC Section 409A, Nonqualified Deferred Compensation; and IRC Section 83b, Property in Exchange for Services
  • Various Corporate Transactions, Elections, and Reorganizations
  • Gift and Estate Tax
     
• Strategic Planning – Some valuation services are performed strictly for internal planning purposes to assist clients in understanding the key value drivers and value creation outcomes related to various strategic alternatives, such as a new product or service launch.
   
• Transaction Planning – Our valuation services can help quantify the potential value from proposed transactions, assist with research to validate preliminary transaction terms, and quantify the potential accounting impact related to contingent consideration or acquired intangible assets.
  • Joint Ventures
  • Licensing of Intellectual Property
  • Mergers and Acquisitions
  • Restructuring and Reorganizations
  • Divestitures
• Litigation, Arbitration, and Other Disputes – Our valuation services are often relied upon in adversarial proceedings to quantify the value of businesses, intellectual property, and other assets that are relevant to the dispute.  In addition, our valuation services can be used to quantify how such business or asset values may have changed over time or been damaged.
  • Commercial Litigation
    • Shareholder Oppression
    • Breach of Contract
    • Intellectual Property Infringement
    • Other Disputes
  • Marital Litigation
  • Pre-Litigation Disputes

Please contact us to learn more about how our skills, insights and experience can meet your organization’s valuation needs.