SEC Satisfied with Financial Reporting Opinion Supporting a $485 Million Acquisition
Client: Lumber, Pulp, Paper and Packaging Company
Challenge: In a Short Time Frame, Allocate the Purchase Price of a Major Industry Transaction with Significant Intangible Asset Value
A Fortune 500 firm decided to sell a rapidly growing and diversified paper business to another publicly traded company. The sale included vertically integrated operations including lumber, pulp, paper, packaging and a co-generation facility. The company purchased was well known in the industry with much of its value attributable to trademarks, proprietary production procedures, customer lists, engineering drawings, backlog, railroad and coal contracts, and pollution emission agreements (cap and trade allowances). The time frame to complete the transaction was short (drafts needed in just 4-weeks) and the acquirer, a regular AccuVal customer, knew we had the industry expertise and technical knowhow to address stringent SEC requirements and the scrutiny of a Big 4 audit review.
AccuVal Approach
The allocation of purchase price (FASB 141) work provided by AccuVal required the evaluation of two business units. AccuVal was able to leverage its depth of knowledge throughout each of the industry segments to supply compelling documentation to support the acquisition. Our work was quickly approved by the firm's public accounting firm.
Bottom Line: AccuVal’s Findings Sail Through Audit and SEC Review
AccuVal's ability to act quickly and authoritatively by providing specialized valuation expertise allowed our client to promptly file documents with the SEC so the transaction could move forward on schedule.
The AccuVal AdVantage™
Diversified expertise. Specific industry insight. Ability to address complex manufacturing operations. Deep understanding of intangible assets. The work ethic to deliver thoroughly documented engagements on time. That's The AccuVal AdVantage™ at work.
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