Business Valuation Monitor
Business Valuation Monitor is a newsletter covering value creation perspectives for corporate executives and the investment community in the areas of financial reporting, transaction support, damage calculations in disputes, intellectual property, bankruptcy proceedings and corporate tax planning.
Bankruptcies will most likely continue to be on the rise for some time, and while this environment is challenging, it presents many opportunities for those who understand how to strategically manage the process. “The blueprint for life after bankruptcy” discusses the roles of fresh start valuation and accounting in the bankruptcy process.
Related documents
SFAS 141R – Treatment of Bargain Purchases In this edition of Business Valuation Monitor, Valuation Services partner, Mark Edwards, outlines issues surrounding the treatment of bargain purchases and key considerations that financial statement preparers should note to avoid unintentional measurement errors under Statement of Financial Accounting Standards 141R – Business Combinations.
Redefining the use of qualified business valuation professionals Most commercial disputes involve complex accounting issues. The successful hiring and use of a qualified business valuation professional represents one of the most critical parts of the trial process. Qualified valuation professionals can be critical, not only in providing the ultimate assessment of the value of a business or interest, but also in the strategic course of discovery and at trial. Recent case examples shed light on how professional business appraisers can work with attorneys to provide objective, defensible positions on the witness stand.
SFAS 141R - Recognition and Measurement of Preexisting Relationships and Reacquired Assets SFAS 141R introduces new acquisition accounting provisions that clarify and determine the treatment of assets and liabilities as part of or separate from the acquisition transaction. In this issue Mark Edwards, Partner in Grant Thornton’s Valuation Services Group explains the application principles for preexisting relationships and reacquired assets between the seller and buyer.
Exploring the New World of Quantitative DLOM Analyses The discount for lack of marketability (DLOM) can be the valuation adjustment with the largest monetary impact on the final determination of value of privately held or restricted shares. In the current issue of BusinessValuation Monitor, Robert E. Duffy, Partner in Grant Thornton’s Valuation Services Group exhumes an old world valuation method that can be useful in today’s increasingly quantitative world.
Judgment calls in valuation: Discounts, taxes and subsequent events Some of the liveliest debates in business valuation are currently taking place around three hot topics: (1) when to include subsequent events in a valuation report; (2) whether discounts for lack of marketability apply to a controlling ownership interest; and (3) how to calculate deductions for built-in capital gains taxes. Discounts perennially are a much-discussed topic among valuators. Recent events in the legal and appraisal communities, however, have added new fuel to the fire in discussions of taxes and subsequent events. Learn more in the latest issue of the Business Valuation Monitor.
FASB Statement No. 141R, Business Combinations Grant Thornton LLP Economic Advisory Services partner, Mark Edwards discusses the revision to Statement of Financial Accounting Standard No. 141, Accounting for Business Combinations, referred to as SFAS 141R. This statement which supersedes SFAS 141 beginning after December 15, 2008 will result in significant changes to accounting policies and procedures that will have substantive impact on mergers and acquisitions and other deal structures.
A wealth of information in financial disclosures may be useful in intellectual property litigation (94 KB) Companies involved in business combinations should examine the relationship between FASB reporting requirements and the future enforcement of rights associated with intangible assets. This issue explores the impact of accounting standards on valuing intellectual property in an acquisition, as well as potential litigation considerations.
Entry versus exit price The trade-off between relevance and reliability in financial information is an ongoing debate. Fortunately, the fair value standard has enhanced the way value is measured. Navigating the hierarchical fair value path assures a clear and reliable route to accurate measurement of an exit price. The following article addresses the measurement approaches as outlined under FASB Statement No. 157, Fair Value Measurements.
Fair value hierarchy There is difficulty in measuring fair value of illiquid assets even in the best of economic times. Add declining markets to the mix and you have a prescription for a challenging endeavor,at best. This article emphasizes the use of market inputs in valuing an asset or liability under Statement 157.