• Tax and Financial Reporting Valuation

    Our experience and analytical insight allows us to fulfill our clients’ tax and financial reporting valuation needs. We go beyond mere documentation to provide our clients with the confidence to meet their growing financial reporting responsibilities. Our breadth of resources has enabled us to become a leader in valuing intangible and tangible assets. Our commitment to understanding changes in regulations and best practices—and our ability to set the standards for uncharted territory—allows our clients to remain focused on operating their businesses.

  • Purchase Price Allocation

    When preparing for or after closing an acquisition, clients turn to us to create transparency and determine the fair value of assets and liabilities for tax and/or financial reporting purposes. As global accounting standards for acquisition accounting continue to evolve, our understanding of these changes and guidance on best practices instill confidence, allowing our clients to remain focused on the transaction at hand.

    Our annual Purchase Price Allocation Study provides an in-depth look at the recent allocations recorded by publicly traded registrants and can be used as a benchmark throughout the industry. 

    Goodwill Impairment

    New rules regarding goodwill and business combination accounting require more time from management to test and manage goodwill and intangible assets. As a leader in valuation services for financial reporting purposes, we help our clients manage the broad array of issues arising from these accounting changes.

    • Step 1 and Step 2 goodwill impairment testing
    • Allocation of purchase price to goodwill
    • Re-lifing and impairment testing for other intangible assets
    • Allocation of existing goodwill and intangibles across reporting units
    • Analysis of pro forma earnings per share for future acquisitions
    409A/Stock Compensation

    When granting or measuring the impact of equity awards and complex securities, clients routinely turn to us to perform in-depth valuation analysis. Clients use our services to assist in the planning and design of equity awards as well as tax and financial reporting compliance. Services include:

    • Pre-IPO stock option and common stock valuation
    • Pre-award planning
    • Valuation of profits interests
    • “Waterfall” analysis
    • Performance and time vesting awards (e.g., SARs, LTIPs, and RSUs)
    • Analysis of repricing and option exchange programs
    • Compensation versus consideration in the context of an acquisition
    • Assistance with client models 

    Our analytical and modeling depth and proprietary valuation models are tailored to our clients’ needs, using appropriate underlying modeling techniques like Black-Scholes Option Pricing, Binomial Lattice, and Monte Carlo Simulation.

    Our understanding of best practices and the key issues of relevant regulators help our clients maximize the economics on any issuance and avoid audit review. We have an in-depth understanding of relevant standards and guidance, including IRC 409A, FASB ASC Topic 718, IFRS 2, and the AICPA Practice Aid.

    Dedicated industry groups within our organization apply sector-specific expertise to our valuation analyses. As a result, we take a “real-world” approach, with an effective mechanism for reconciling a theoretically determined fair value to an expected market price. We have been assisting clients with share-based compensation valuations for over 40 years.

    Fresh-Start Accounting Valuation

    Navigating the bankruptcy process is a complicated endeavor many companies face, particularly in today’s challenging market. Preparing a successful fresh-start accounting plan requires sophisticated guidance from a trusted valuation advisor. Clients rely on our analytical insight and expertise in valuation for financial reporting purposes to help chart their course for bankruptcy emergence. Our guidance on preparation and strategic execution can help minimize risk and move the company forward. 

    Tax Valuation

    As an increasing number of firms separate the generation and execution of tax planning ideas, we serve as a trusted valuation advisor. Bridging the gap between a firm’s internal tax planning department and its external auditor, we have the experience to assist our clients from the planning phase through final disposition at the controversy level. 

Related Highlights

Contact Us

Dimitri Drone

Managing Director
Head of Tax & Financial Reporting

Dimitri Drone

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