Valuations

Whether you need help appraising machinery and equipment or conducting a fixed asset inventory audit/ ledger reconciliation, we have the experience and technical expertise to accomplish the task. Bond & Pecaro has conducted fixed asset reconciliations for large, multi-location media and technology companies, as well as the Federal government. These assignments utilized bar code/ RFID scanning, reconciling the results to the ledger.

Intellectual Property can be the cornerstone of a technology company’s value. IP may need to be valued for restructurings, licensing, royalty rates, acquisitions, and other reasons. The valuation of IP is similar in nature to the valuation of intangible assets and usually relies on one of the three basic approaches to valuation. Given the nature of intellectual property, it is often valued using the income approach with a royalty-relief method.

Business valuations, also known as fair market valuations, provide an independent estimate of the value of the operating assets or equity of a company. These valuations are important for acquisitions, financing, compensation plans, joint ventures, reorganizations, and estate planning. The firm's valuation reports contain descriptions of the competitive landscape served by the business, in addition to detailed financial projections.

The valuation of stock equity or partnership interests is essential in connection with employee stock option and compensation plans, fairness opinions, gift or estate tax planning, appreciation rights, litigation, and for other planning purposes. Stock valuations require special sensitivity to applicable rights and restrictions, particularly in situations involving minority or partial interests and classes of stock with different privileges.

The valuation of intangible assets is particularly important since they often account for a relatively large proportion of the total value of a business. Examples of specific intangible assets include licenses, patents, client relationships, franchises, customer lists, subscribers, business-on-the-books, leases, employment contracts, domain names, trademarks, intellectual property, supplier contracts, and acquired technology, among many others.

Bond & Pecaro provides fairness and solvency opinions on behalf of stockholders, investors, company directors, or other parties. Fairness Opinions provide an independent analysis of a proposed transaction. Solvency Opinions determine whether a company’s fair market value exceeds its liabilities; whether it is able to meet its debt and loan obligations; and whether adequate capital exists to meet future needs.

In today's economy, the values of company assets fluctuate in response to internal and external factors. We can help your company navigate the accounting and regulatory compliance landscape for the recognition of the values of fixed assets, intangible assets, and Goodwill. We are very familiar with the requirements of Accounting Standards Codification (ASC) Topics 350, 360, and 805 that outline the testing and valuation of fixed and intangible assets for financial reporting.

A purchase price allocation or asset appraisal provides a basis for establishing the value of the tangible and intangible assets of a company for accounting, tax, transactional, insurance, and other purposes. Knowing the value of the assets is essential to ensure accuracy in financial reporting, optimize the tax benefits of an acquisition, to structure like-kind exchange transactions and determine correct depreciation and amortization of the assets.