| Our specialty is
appraising the value of business and intangible assets for private and
public companies and individuals. Our estimates of value and reports
have been used by our clients to provide sufficient evidentiary material
to their outside auditors, for regulatory compliance with the Securities
Exchange Commission and for tax filings with the Internal Revenue
Service. We have also been called upon to provide expert testimony
(damage calculations) in legal proceedings.
Our valuation analyses have
been used for the following purposes:
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Financial Reporting |
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| Purchase Price
Allocation [i.e. Statement 141 (Business Combinations)] |
| GAAP requires
companies to allocate the purchase price of an acquired company (or
group of assets) among identifiable tangible and intangible assets. We
provide estimates of the fair values of intangible assets and remaining
useful lives for those assets. We are experts in the valuation of
technology and technology-related assets. |
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See Statement 141 PowerPoint presentation
to Software Council of Southern California. |
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| Fair Value of Common
Stock (sometimes known as "cheap stock") |
| Increasing amounts of
equity "compensation" are given to employees, key management and service
providers in the form of stock options. The proper valuation of these
derivative securities is essential to the reporting of compensation
expense or recording of an asset on the financial statements. Management
and auditors typically rely on the Black-Scholes Option Model to value
those options. We will either calculate the value of the underlying
common stock or assist management (i.e., valuation consulting) in
calculating the value of common stock so that the options can be valued. |
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| Impairment of
Long-Lived Assets [i.e. Statement 142 (Goodwill and other Intangibles)] |
| Certain economic or
company-specific factors may trigger an analysis of the impairment of
long-term assets for financial reporting purposes (FAS 121, Impairment
of Long-Lived Assets and Long-Lived Assets to be Disposed of). We assist
clients with the calculation and substantiation of those losses. |
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See Statement 142 PowerPoint
Presentation to Selected Technology Executives. |
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Tax Compliance |
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Business Valuation and Intangible Asset Valuation |
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| Our clients and their
advisors have requested valuation analyses similar to those listed above
for use with their particular tax strategies. |
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Transfer Pricing Studies |
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| Our clients and their
advisors have requested valuation analyses to support their tax
accounting under Section 482 of the Internal Revenue Code. |
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Mergers and Acquisitions |
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| Our clients and their
advisors have engaged us to estimate the relative values of merging
companies in order to calculate exchange ratios for shareholders. We
have also opined to the valuation of new securities created by
post-merger combined company for financial reporting and tax purposes. |
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Litigation (Damages
and Expert Testimony) |
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- Shareholder
Disputes/Securities Class Action
- Breach of Contract
(Lost Profits) Damages
- Intellectual Property
Damages
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Valuation Consulting |
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| In a number of cases, it
becomes impractical for our clients to engage us for a full appraisal. As an alternative, we will assist capable personnel at the client's by
providing them with electronic templates and public information from the
capital markets to create memorandums and exhibits which present
estimates of value for their particular purpose based on generally
accepted valuation methodologies. |
Valuation
Services
