Public Company Completes $135 Million Acquisition
Client: $1 Billion Diversified Holding Company
Challenge: Allocate Purchase Price of Six Unique Operating Divisions in Accordance with Recently Revised Accounting Standards
A billion-dollar public holding company that invests in a diverse group of businesses asked AccuVal to allocate the purchase price of a company it had recently acquired for $135 million. The valuation was required to comply with revised accounting standards that affect both how business combinations are reported and change how goodwill and other intangible assets are accounted for.
AccuVal Approach
What made this assignment interesting was that six operating divisions were purchased, and each was unique. The growth prospects, competitors and costs of capital were all different – products ranged from technology materials for printed circuit boards to replacement band-saw blades, butcher knives, pressure-sensitive industrial adhesives and vinyl signage graphics. The geography and markets covered were vast, with plants located throughout the United States and Europe.
AccuVal assembled an appraisal team with specific expertise in each industry segment. Team members fanned out to inspect and appraise the acquired company's real estate, machinery and intangible assets, staying in close communication with management at all business units throughout the entire assignment. Every phase of the appraisal was meticulously documented to meet rigorous regulatory standards with the outcome resulting in a collective value conclusion that supported the transaction.
Bottom Line: Acquisition Supported; SEC Deadline Met
A complex, $135 million global acquisition was appropriately supported, and the company met a very tight SEC quarterly filing deadline.
The AccuVal AdVantage™
Global resources and expertise. Knowledge of complex financial reporting requirements. The resources to provide an integrated, SingleSourceSolution® for valuation of inventories, machinery and intangible assets. Adherence to absolute deadlines. That's The AccuVal AdVantage™ at work.
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