Chemical Transaction Sails Through Audit
Client: Major Chemicals Supplier to the Electronics Industry
Challenge: Appraise Plants in U.S. and Europe with Tight Deadline
A leading supplier of gases, chemicals and equipment for the global electronics industry agreed to acquire the largest U.S. supplier of high-purity process chemicals used by semiconductor manufacturers. The combined enterprise was expected to generate approximately $135 million in revenues during the next fiscal year.
After completing the deal, the new owners needed to allocate the purchase price under the Financial Accounting Standards Board Statement No. 141. Company management engaged AccuVal because of our global capabilities, in-depth industry expertise and specific knowledge of the types of machinery and equipment used in the manufacturing process.
AccuVal Approach
This engagement required appraisals in the U.S. and Europe. Based on initial due diligence, team members knew that meeting strict audit standards would require much more than a simple analysis of depreciation schedules, which were not entirely reliable. AccuVal was prepared and equipped to dig in, generating factual information on the equipment, its capacity and specifications - details vital to developing accurate replacement costs to begin a reliable fair value analysis.
In an effort to further assist the company, AccuVal made sure its inspection of both manufacturing facilities and the detail asset listing would satisfy the needs of financial institutions for lending purposes. The ability to provide multiple solutions demonstrated AccuVal's reputation as a SingleSourceSolution®.
Bottom Line: Filing Meets Strict Industry Standards and also Satisfied Financing Requirements
AccuVal satisfied the financial reporting requirements of an international transaction and, while in the process, also provided information helpful for asset-based financing. The project was finished on-time and within budget. And, our ability to thoroughly catalogue the equipment ensures future valuations will be expedited.
The AccuVal AdVantage™
Expertise valuing businesses internationally. A deep knowledgebase of tangible and intangible asset appraisals. Experts who know what to look for and what they are looking at. The talent to work quickly and thoroughly to exceed client expectations. That's The AccuVal AdVantage™ at work.
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