Precise valuations for financial reporting and tax requirements
Business valuations are commonly required in acquisitions, stock compensation, equity and debt financings, impairment testing, estate planning, divorce, shareholder disputes, buy/sell agreements and other situations.
Whether you’re involved in the sale or purchase of a business, or just complying with complex financial reporting and tax requirements, CFGI’s valuation specialists provide objective and independent assessments of value for the purposes of financial reporting, transactions and family-business succession planning.
We provide financial opinions to private equity firms, privately held and publicly traded companies, attorneys, financial advisors and high net worth individuals seeking to turn critical and complex financial issues into opportunities for growth, resilience and long-term sustainability.
Allocating fair value in an acquisition, valuing equity securities and debt instruments, and measuring interests in a closely held business for estate planning and sale purposes are just some of the many areas in which we have valuation experience.
CFGI valuation specialists can provide accurate and defensible valuations in the following areas:
- Purchase price allocations: Independent valuation of the assets acquired and liabilities assumed in a business combination, helping allocate the value of the purchase consideration to the identifiable tangible and intangible assets acquired and to goodwill (ASC 805). We also determine the fair value of rollover equity and contingent consideration (earnout) that are part of the transaction.
- Complex securities: Complex securities are typically rich in economic features and closely linked to an equity, debt or hybrid instrument. We prepare fair value estimates using the most appropriate valuation model – a topic that has received increased scrutiny from regulators and investors in recent years (ASC 820).
- Stock-based compensation: Valuation of equity securities, employing a full range of valuation techniques, including Monte Carlo simulation analysis, binomial lattice models and Black-Scholes (IRC 409A / ASC 718).
- Impairment testing: Ascertaining the fair value of goodwill and indefinite-lived intangible assets for potential impairment, as well as performing the recoverability test for long-lived assets (ASC 350/360).
- Fair market value: Determining the fair market value of company stock so that you can execute business decisions in the most tax-efficient manner. We assist in determining the fair market value while navigating changing tax law and shifting regulations.
- Strategic planning: Valuing potential acquisition targets, buy-sell planning and granting stock options.
- Estate and gift tax: Valuation of interests in closely held businesses or other securities, as well as discount studies for partnerships or other estate planning vehicles.
- Litigation support: Valuing business interests or quantifying damages when encountering situations such as marital dissolution, shareholder disputes or events causing disruption.
You have assets, we have valuations
Proper asset valuation is a complex function that requires finance experience and an encyclopedic understanding of accounting standards, tax law and countless other proficiencies.
The finance and accounting experts possess all of this and more and are prepared to provide you with accurate and defensible asset valuations so that you can make better short- and long-term financial decisions.