VALUATION
We perform fair value estimates for financial reporting, tax or other purpose, using income, cost or market approaches. Income approach may include discounted cash flow, 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:
- 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:
- 409(a) valuation
- Stock options with service, performance and/or market conditions
- RSUs, restricted stock, stock appreciation rights
Impairment Testing:
- Goodwill impairment
- Impairment of other intangible assets
- Impairment of fixed assets, other assets
Financial instruments:
- Convertible debt, convertible preferred stock
- Warrants
- Other debt and equity investments