Transaction and Tax Matters

Both purchasers and sellers have retained us to provide advice concerning the value of businesses and allocations of purchased intangible assets for financial reporting purposes.  The firm also has provided fair market valuations for documenting values for estates or tax planning circumstances.  

Examples of these assignments include:

  • Sale of Company - Retained by management of a manufacturer to value the company and its technology for purposes of a sale. The analysis compared the value of the company as an operating entity with the value of the technology as a separate asset.
  • Purchase of Company - Supported the management of a potential purchaser of a closely held business to determine the fair market value of the company and analyze various purchase scenarios.
  • Allocation of License Rights - Allocated the amount paid for licenses to use patented technology in current and future products. The analysis computed the fair value of these rights in accordance with Generally Accepted Accounting Principles.
  • Valuation of Non-Competition Provisions - Computed the fair market value of non-competition provisions of employment agreements of investment analysts and advisers to investment funds.
  • Estate Valuation - Valued a one-third ownership interest in a software company held by a decedent. Evaluated cash flows from license agreements and discounts for minority and lack of marketability related to the interest.
  • Not-for-Profit - Determined fair market valuations of copyrights, domain names and other intangible assets that were being transferred to a not-for-profit entity.