Client: Private Equity Firm
Challenge: Appraise Assets of Acquired Company for Financial Reporting in Accordance with Revised FASB Standards
When the founder of one of the country's larger suppliers of liquid asphalt wanted to sell the company he had established six decades earlier, the business was sold to a large private equity firm for $17-plus million. The new owners engaged AccuVal to appraise the assets of the acquired company for financial reporting. Standards adopted in recent years by the Financial Accounting Standards Board required the use of new methods to account for business combinations, goodwill and other intangible assets.
Using a discounted cash flow model, AccuVal conducted an analysis of the acquired company's tangible and intangible assets. The firm developed documentation to support a valuation of approximately $12 million for the land, buildings, machinery and equipment that were included in the sale. For the intangibles – factors that included customer relationships that drove sales at the company's headquarters facility and large terminals; contract agreements; trademarks and brand equity – AccuVal identified an additional $5 million in value and provided the necessary documentation to support the findings.
With AccuVal's appraisal, the acquiring firm filed its required financial report in a timely fashion. The client was so pleased with AccuVal's work product and responsiveness that it quickly engaged the firm to complete three subsequent assignments.
Detailed knowledge of inventory, machinery, real estate and intangible assets. Leadership to help customers simultaneously fund transactions and address financial reporting requirements. The knowledge and experience to assemble and accurately interpret information from disparate reports and multi-national sources. Ability to meet aggressive deadlines. That's The AccuVal AdVantage™ at work.