Financial Valuation Services
The value of an income producing asset lies in the income stream produced by that asset. Two assets may be exactly the same in all respects except for the level of income produced. That asset which produces the higher level of income over its life has the higher value.
The income contribution from an asset can be direct or indirect. A direct contribution exists in the income received from the use of the asset by others. An indirect contribution exists in the form of any cost savings created by an asset which contributes to a higher level of profit from the sale of products covered by that asset.
Our financial valuation group knows where to look for value as well as how to quantify that value once it is identified. They also understand the intricacies and implications associated with the various accounting and tax pronouncements underlying the need for detailed and documented value conclusions. Well versed in the accounting and tax requirements underlying the need for financial valuations, group members routinely conduct valuations for compliance with FASB 718, 805, 820, 350 and 360 as well as Sections 1060, 338(h)(10) and other relevant provisions of the Internal Revenue Code of 1986, as amended. In addition, our financial valuation group is constantly undertaking other forms of sophisticated financial analyses to assist our client companies in their evaluation of strategic opportunities.
From the valuation of a business enterprise to the valuation of a stock option, from the valuation of an intangible asset to the valuation of a financial derivative, from conducting a solvency evaluation to conducting a fairness evaluation, we have the ability to distill complex assets into their various value components.
Our portfolio of brand valuations include the brands of apparel and accessory designers and manufacturers, food and beverage manufacturers, sporting goods manufacturers, cosmetic manufacturers, vitamin and nutritional supplement manufacturers, boat manufacturers, toy and hobby product manufacturers, magazine publishers, furniture manufacturers and other consumer product manufacturers. While some of the brands we’ve valued are only exposed to a regional audience, others are of national stature in which the brand ranks first, second or third (by market share) in the space in which it competes.
Whether a development stage company or a company with a one hundred year operating history, we can address the financial valuation issues confronting the organization. These issues range from the common to the complex and have included the valuation of management rights created through a reverse triangular merger, the allocation of the lump sum purchase price paid for a holding company among its seventy first, second and third tier subsidiaries, the valuation of seven different classes of membership units, each of which had certain rights and preferences with respect to cash flow distributions and liquidation proceeds and a variety of other analyses designed to establish fair consideration in ongoing transactions between affiliated entities.