VALUATION
We perform fair value estimates for financial reporting purpose, using income, cost or market approaches. Income approach may include discounted cash flow (DCF), relief from royalty, multiple-period excess earnings method. More specific applications of the approach include lattice models, Monte Carlo simulation or may be based on Black-Scholes-Merton option pricing model.
Some areas for which we develop fair value estimates are listed below.
Purchase Price Allocation (ASC 805, 820):
- Fair value of intangible assets: customer-related, technology-based, marketing-related, etc.
- Fair value of other assets or liabilities: inventory, favorable/unfavorable leases, R&D
- Fair value of purchase price, including contingent consideration.
Stock-based Compensation (ASC 718):
- 409(a) valuation
- Stock options with service, performance and/or market conditions
- RSUs, restricted stock, stock appreciation rights
Impairment Testing (ASC 820):
- Goodwill impairment (ASC 350-20)
- Impairment of other intangible assets (ASC 350-30)
- Impairment of fixed assets, other assets (ASC 360, etc.)
Financial instruments (ASC 820):
- Convertible debt, convertible preferred stock
- Warrants
- Other debt and equity investments