Fair value accounting and financial reporting requirements are complex and continue to evolve. Applied Economics helps clients successfully navigate valuation issues related to accounting for business combinations, goodwill and intangible assets, and stock compensation. We are regularly engaged by public companies, privately-held businesses, private equity firms, and referred by local and national accounting firms, to provide valuation services for financial reporting purposes. Our valuation work has been reviewed and accepted by major public accounting firms, as well as the IRS and the American Society of Appraisers. Our financial reporting valuation services include fair value opinions used for financial and regulatory reporting including:
- ASC 805, Business Combinations (IFRS 3, Business Combinations). Tangible and intangible asset valuations for purchase price allocations.
- ASC 350, Intangibles – Goodwill and Other (IAS 36, Impairment of Assets). Enterprise and reporting unit valuations for goodwill impairment testing and indefinite-lived intangible asset valuations for impairment testing.
- ASC 360, Impairment or Disposal of Long-Lived Assets (IAS 36, Impairment of Assets). Analysis of finite-lived intangible assets and asset groups for impairment testing.
- ASC 820, Fair Value Measurements (IFRS 13, Fair Value Measurement). Valuations of illiquid investments and alternative assets for financial reporting.
- ASC 718, Compensation–Stock Compensation. Common stock and stock option valuation for financial reporting (also to satisfy associated tax compliance requirements pursuant to IRC 409A).
Applied Economics has performed financial reporting valuations for clients across a variety of industries including software, technology, business services, healthcare, pharmaceuticals, publishing & media, financial services, manufacturing, retail, and consumer products.
Business Valuation Relevant Experience
Examples of our financial reporting valuation engagements include:
- Valued intangible assets acquired and contingent consideration issued in conjunction with multiple acquisitions made by a publicly traded client in the software industry for purchase price allocation purposes, including acquisitions of international targets and a publicly traded target. Also prepared subsequent annual reporting unit impairment tests for the client
- Valued acquired intangible assets in conjunction with multiple acquisitions made by a publicly traded client in the healthcare services industry for purchase price allocation purposes, including a $450 million home health care and hospice provider. Also prepared subsequent annual reporting unit impairment tests for the client
- Performed quarterly valuations of common and preferred stock for a client in the pharmaceutical industry in preparation for the client’s initial public offering filing
- Valued a portfolio of illiquid securities owned by an investment fund for financial reporting purposes
- Valued intangible assets of a publicly traded operator and franchisor of quick-service restaurant and retail brands in conjunction with the company’s acquisition by a private equity firm for purchase price allocation purposes
- Valued software, customer relationships and trade names for a multi reporting unit $175 million enterprise management software firm for purchase price allocation purposes
- Valued trade names, customer relationships and other intangibles of a $100 million national payday loan operator purchased by a publicly traded company for purchase price allocation purposes
- Valued acquired mortgage serving rights and related intangible assets for financial reporting in accordance with ASC 860-50, Transfers and Servicing – Servicing Assets and Liabilities
- Valued a government and commercial services contractor with over $1 billion in annual revenue for annual goodwill impairment testing and stock option reporting
- Valued one of the largest consumer-publishing and media groups in America for annual goodwill impairment testing
- Valued put options and other contingent options for SEC compliance purposes in conjunction with a client’s successful registration for initial public offering of stock