Allocation of Purchase Price Provided for International Transaction; $1.5 Billion Acquisition Closed
Client: Global Meat Processor
Challenge: Provide Allocation of Purchase Price for Large, International Transaction
Two of the world's largest beef processors came together in an acquisition valued at approximately $1.5 billion. AccuVal had already assisted the United States firm being acquired in securing substantial working capital loans so senior management was very comfortable with the firm's industry knowledge and in-depth understanding of the operations and underlying assets. Because of management's confidence in AccuVal and recognition of the firm's expertise valuing assets of business combinations, AccuVal was the sole source considered to provide the allocation of purchase price under Financial Accounting Standards Board Rule 141.
AccuVal Approach
The engagement involved valuing real estate and machinery throughout the United States and Australia. The acquirer quickly moved the integration process forward which resulted in changing auditors and eliminating some of the senior managers involved in the audit and appraisal processes. As a result, the acquiring company's officers and new auditors relied on AccuVal for an overall assessment of matters concerning the acquisition and for frequent in-depth communications to ensure matters were on-track and vital information was delivered on time. Many challenges were successfully addressed during the engagement, including maintaining the integrity and accuracy of voluminous domestic and foreign asset files. AccuVal also estimated the economic obsolescence of the lamb-processing operations that had deteriorated in value due to decline in the American market for lamb.
Bottom Line: Valuation Conclusions and Appraisal Process Embraced by All Parties to Transaction
AccuVal moved quickly to complete a complex, international valuation while successfully coordinating with management and audit staffs in transition.
The AccuVal AdVantage™
Ability to identify important solutions. Thorough coordination and communication. Deep industry expertise. Integrated knowledge of all business assets. That's The AccuVal AdVantage™ at work.
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