Valuation
Business Valuation
Business valuation requires a firm understanding of how value has been created and how it will continue to be created in the future. This requires a well thought out analysis of the company, its industry, competitors, and its unique threats, opportunities, and prospects. Moreover, there are a wide variety of contexts in which valuations are performed. Understanding these complexities and issues is where we excel. We are a unique service provider that draws from our litigation experience to provide analyses that are well thought out and sound. We are used to serving as expert witnesses and, as a result, having our analyses challenged in court. Therefore, even when the valuation is not intended to be used for litigation, we take the requisite time and employ the necessary resources to ensure that are providing the highest quality of service. We are not a cookie cutter valuation firm that provides a product to paper your file. If you are looking to just add paper to the file and check off a box, then we probably are not your firm. However, if you need a valuation that is highly complex, there is risk that the valuation will be challenged, money is actually changing hands, or if the company wants to maximize (and in some cases, monetize) its value, we are the firm for you.
Our Salt Lake City based group consists of over twenty professionals educated and trained in various disciplines including accounting, finance, business and intellectual property valuation, economics, and statistics, and who have experience in forensic accounting, business valuation, and management consulting. The majority of our staff have previously worked for one of the Big Four international accounting firms.
We specialize in
Shareholder Disputes
When relationships among owners in a business don’t work out as planned, a change in that ownership structure may be necessary. Disputes over the value of a business or other ownership interests are sometimes unavoidable. An accurate assessment of value in these situations often depends on sophisticated, data-driven economic and financial analyses. These situations are right in our wheelhouse. We are also often called upon to provide advise on how best to structure the transaction to best accomplish the goals of parties.
Financial Reporting Valuations
Throughout the years, the Financial Accounting Standards Board has enacted various standards, namely, ASC 805 – Business Combinations, ASC 820 – Fair Value Measurements and Disclosures, ASC 350 – Intangibles – Goodwill and Other, ASC 360 – Property Plant and Equipment, and ASC 718 – Compensation – Stock Compensation, that set for the reporting requirements for acquisitions (purchase price allocations), tangible asset impairments, intangible asset impairments, goodwill impairments and fair value accounting. Lone Peak Valuation Group’s expertise has made us a leading provider in the Salt Lake market for business combinations and financial reporting valuations. Our professionals offer an in-depth understanding of the regulatory valuation requirements and our analyses have been routinely subjected to the scrutiny of the major auditing/accounting firms. In a nutshell, we understand the complexities involved in this arena and know how to work with your auditors so that we can minimize the back and forth and headaches that may be caused by a less experienced service provider.
Stock Option Valuations
The Internal Revenue Service (via IRC Section 409A) and the accounting standards (ASC 718 – Compensation – Stock Compensation) require that companies issue equity awards (e.g., stock options) at or above an appropriate standard of value (Fair Market Value/Fair Value). Failing to do so, can cause costly penalties and/or cheap stock issues. Therefore, it is prudent for a company to engage a competent valuation firm to perform a valuation of these equity awards. If you are looking for a cookie cutter valuation to stick in the file, we probably are not your firm. However, if you need a valuation that is complex or if there is risk that it will be subject to auditor/regulatory scrutiny, we are well qualified to meet your needs.
Intellectual Property Valuations
In our high-tech business environment, a company’s intellectual property assets are key to its current and future success. Our valuation professionals have long track records in providing valuations of intellectual property assets (e.g., patents, trademarks, copyrights, trade secrets, non-competition agreements, etc.) in a wide variety of corporate and business purposes.
Gift, Estate, and Other Tax Valuations
Valuations may be required for IRS reporting purposes when a business owner transfers an ownership to another individual, entity, trust, or charitable organization. Reasonable and supportable valuations are critical when facing a potential challenge by the IRS. Our experience as expert witnesses in litigation matters allows us to recognize the areas where valuations are frequently challenged and helps us perform the valuation in a manner that will prepare us if the IRS audits a valuation used for tax purposes.
Buy-Sell Agreements
Business owners often enter into Buy-Sell Agreements in an effort to streamline the transfer from one owner to another should certain events occur (e.g., death, disability, etc.). Because we have seen everything from effective Buy-Sell Agreements which have been written in a clear manner to allow the ownership transfer to occur as intended to highly contentious litigation over the proper interpretation of the Buy-Sell Agreement, we can provide meaningful insight when developing and drafting the Buy-Sell Agreement, when a triggering even has occurred and a valuation is required, and when the parties litigate over the meaning of a Buy-Sell Agreement. Because money is either changing hands or will likely change hands at the occurrence of a triggering even, make sure to consult with a valuation expert to ensure that you’re not leaving money on the table.
Transactions and Consulting
When you’re buying or selling a business, you don’t want to leave money on the table. Our valuation experts can help you understand the value of the business you are buying or selling through consideration of the company’s cash flow, risk, and market analyses. We can also help you understand how to structure the transaction and the issues the you may face with the various alternatives you may face.
