Business Valuations
The Business Valuation team at Weaver provides financial reporting compliance, tax planning or compliance, merger and acquisition assistance, and corporate or litigation strategy consulting. Having completed hundreds of business valuations, our experienced professionals combine finance and accounting expertise with sophisticated valuation methodologies to fulfill even the most complex financial reporting and tax requirements. All of our valuation opinions are fully defensible and carefully documented to withstand scrutiny from a variety of regulatory bodies, including the SEC.
What are Business Valuations?
Business valuation is the process of estimating the economic value of a business or asset. This involves a specialized set of methodologies that are recognized as reliable and usable within the marketplace, as well as by accounting, financial and tax regulatory agencies.
What Necessitates Business Valuations?
Beyond the fundamental fact that reliable valuations are necessary for fair value to be exchanged in a transaction, many accounting and financial reporting regulations require valuations to be performed on an on-going basis. In addition, transactions require a valuation of the underlying assets for tax planning and compliance reasons.
Why are Business Valuations Important?
In today’s complex financial, regulatory, and legal environment, partnering with a business valuation team with a wealth of experience can streamline the process and provide the most reliable and defensible information to enable sound strategic decisions. This yields better anticipation of the needs of auditors, lenders, regulators, and administrative authorities, while reducing the risks of non-compliance with regulatory and administrative agencies.
What Business Valuations Services Does Weaver Offer?
FINANCIAL REPORTING
Purchase Price Allocation
Purchase price allocations account for business combinations by recognizing the costs of acquisitions and liabilities assumed and separately recognizing intangible assets based on their fair values. Weaver offers considerable expertise in providing independent and defensible valuation analysis associated with business combinations. We assist with identifying recognizable intangible assets and amortization, and assign intangible assets and residual purchase price to reporting units.
Goodwill Impairment
In accordance with Accounting Standards Codification 350, “Intangibles – goodwill and other” (ASC 350), intangible assets with indefinite lives (such as trade names) should be tested annually. We can develop the studies required to test goodwill and indefinite lived assets cost-effectively, allowing you to confidently address any questions raised by your investors, auditors, board of directors and/or any regulatory bodies, such as the SEC.
Stock Options & Warrant Valuations
Determining the value of option contracts depends on a number of variables and requires the use of complex formulas that can lead to varying opinions of value. Under ASC 718, “Compensation – stock compensation,” all publicly-traded companies are required to expense stock-based compensation. Weaver helps clients improve their options expense estimations with generally accepted valuation techniques, yielding a defensible analysis.
Fresh Start Accounting
ASC 852 (formerly AICPA Statement of Position No. 90-7) requires that a company emerging from bankruptcy must restate its balance sheet at fair value and allocate the revalued balance sheet in accordance with ASC 805. Weaver’s significant experience in providing financial reporting valuations is available to companies ready to emerge from bankruptcy.
MANAGEMENT ASSISTANCE
Mergers & Acquisitions
Weaver provides consulting to clients on the financial prospects of target companies, developing a list of comparables company values, and developing discounted cash flow models and other analyses in support of an offer to purchase a business. Other management assistance service areas include:
TAX VALUATIONS
Estate & Gift Taxes
Tax strategies are becoming increasingly complex and more highly scrutinized by regulatory authorities. We provide both corporate clients and personal clients (gift and estate taxes) with objective supportable analysis. Tax valuation services are available for C corporations, S corporations, limited liability corporations, partnerships and proprietorships. Other tax valuation service areas include:
