Rising Interest Rates and Inflation May be Lowering Your Company’s Value – Here’s How to Take Action
Everyone is feeling the effects of rising interest rates and inflation, whether it’s visiting the grocery store, eating…
Understand the true value of your business or assets using facts and credible analysis.
A valuation requires an intricate combination of financial analysis and opinion, combined with facts and professional judgment. Our valuation professionals have the expertise and resources to provide a credible, cost-effective, and pragmatic valuation of a business enterprise, an ownership interest, or a business’ underlying assets.
Valuations are often needed for a variety of federal and state tax planning and compliance purposes. These valuations can come with major financial implications and scrutiny from the IRS, courts, and other agencies. Anders has significant valuation experience in the following areas:
In a business combination, companies must navigate a range of often-confusing accounting guidelines. Properly following these guidelines can have a profound impact on the transaction’s success. At Anders, our team of valuation advisors helps clients navigate the financial reporting and tax treatment process for business combinations to ensure a seamless and stress-free transition. Our valuations have withstood the scrutiny of the acquirer’s auditors and the IRS. We can assist you with valuation needs arising in the context of ASC 805, including:
Upon recognition on the balance sheet, goodwill and indefinite-lived intangible assets are tested for impairment at least annually under ASC 350, or after a triggering event. At Anders, our team has an understanding of the valuation requirements of ASC 350 and ASC 360 and the key areas of concern to auditors. We assist our clients with a variety of issues in the impairment testing of goodwill and indefinite-lived intangible assets, including:
Our team also has experience with ASC 360 and the fair value of long-lived assets. We can assist in determining the recoverability and fair value measurement, as required, including:
Successful businesses focus on creating intangible value and innovation to drive business value. Understanding the value of your business’s intellectual property can help you understand the true value of the business and take advantage of the value of assets that might currently be unaccounted for on the business’ balance sheet. There are a number of ways in which determining the value of your intellectual property can provide a tangible benefit:
A key component of a succession plan is a business valuation, which can significantly impact gift and estate taxes, the structure of shareholder agreements, and the assessment of strategic alternatives. Business owners can create a successful long-term succession plan, avoid potential conflicts among family members, and align corporate and shareholder objectives by understanding the value of the business. It’s critical for owners to:
Anders assists business owners with valuations in connection with buy and sell-side opportunities, as well as the establishment of buy-sell agreements and estate planning. We routinely work with trust and estate attorneys, CPAs, corporate attorneys, wealth advisors and business owners.
As a company moves toward a transaction, the strategy and planning process is critical. Anders advisors guide business owners through key valuation and business modeling to understand the impact of a range of outcomes. Our capabilities include:
In turning to a commercial lender for a business loan, expect the focus to be on the company’s cash flow. One cause of disagreements between business owners and lenders is the way in which the value of pledged assets is determined.
Lenders will often use what is called a “liquidation” premise of value. This reflects a worst-case scenario in the event the business fails to repay the loan. For an owner of a profitable business, the typical premise is “value in use.” Under this premise, the resulting business valuation is generally considerably higher. Thus, depending on the premise used, the valuation results and the amount of the loan can vary dramatically.
Given these scenarios, it is important for the business owner to engage a qualified valuation specialist. Anders has valuation advisors with the depth of experience, credentials, and qualifications to provide sound, objective, and credible business valuations that can be relied upon by lenders, increasing the likelihood of a successful outcome.
A successful outcome in many legal disputes can depend on well-prepared evidence. At Anders, our team uses extensive valuation experience to assist clients, attorneys, and other advisors in connection with a range of issues and can provide expert witness testimony in support of our work. We routinely provide clients with valuations and related analyses for litigation support.
Examples of litigation matters in which a sound valuation report and expert are needed include:
We can provide testimony in depositions and trials and also serve as a third-party appraiser, which may be jointly hired by the involved parties or court-appointed.
We combine our experience with complex financial modeling and expertise in corporate finance to assist clients with solving complex problems and bringing to light the key issues. Our team has a passion for collaborating with our clients to understand the most critical questions facing their business and developing decision-making tools that provide business owners with greater confidence in their understanding of the key drivers of their business’s risk and return. We work with our clients to scope, build, and test financial modeling solutions. We are also able to draw from our industry experience, insight and technical skills to solve problems. Areas in which we can provide support include:
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