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CORPORATE VALUATION SERVICES

We have valued hundreds of operating companies and are very familiar with each of the following industries:

  • Wholesale Distribution

  • Professional Services

  • Manufacturing

  • Construction

  • Healthcare Services

  • Government Contractors

  • Business Services

  • Technology Companies

  • Real Estate

  • Automobile Dealerships

  • IT Services

  • Small Businesses

Operating companies have many moving parts. Determination of Net Asset Value (as in FLPs) is only the beginning. In addition to the Cost Approach, the valuer must also consider the Income and Market Approaches to value. While most privately held companies can be valued as a multiple of earnings, the unique circumstances surrounding the need for a valuation can cause the need for different valuation approaches. In a buy/sell agreement, the parties are often looking for fair value without discounts as opposed to Fair Market Value. There are different valuation standards for different purposes. An owner who wants to know how much his company is worth is looking for Investment Value.

Financial Reporting Services

Tucker & Meltzer provides companies with a variety of corporate valuation services. Typically, these valuation services are performed under the Fair Value accounting standard, as Accounting Standards Codification (ASC) 820 Fair Value Measurements and Disclosures (formerly SFAS No. 157, Fair Value Measurements).

  • Purchase Price Allocation - Acquisitions

  • Intellectual Property and Intangible Assets

  • Goodwill Impairment Testing

  • Equity Based Compensation

  • Employee Stock Ownership Plans

  • S Corporation Conversions

  • Stock Options and Warrants

  • Buy/Sell Agreements

Companies making acquisitions are required to allocate the purchase price over the assets acquired. Under ASC 805 (formerly SFAS No. 141 and 141R), companies are required to use purchase accounting for business combinations. Typically, portions of the cost are assigned to plant, property and equipment; intangible assets; inventory; and goodwill - all on the basis of fair value.

After making acquisitions, Companies are required to perform an impairment test on existing goodwill as well as identifiable intangibles under ASC 350 (formerly SFAS No. 142 - Goodwill and other Intangible Assets). If the fair value of a business unit is less than the carrying amount of the assets in that business unit, there has been impairment.

Companies issuing equity-based employee compensation are required to expense the compensation under ASC 718 Compensation - Stock Compensation (formerly SFAS 123R). Compliance with Section 409A of the Internal Revenue Code for stock options and stock appreciation rights in non-qualified deferred compensation plans also require valuations.