Industry Leader Completes $1 Billion Acquisition in Full Compliance with Accounting Standards
Client: Major Building Products Manufacturer
Challenge: Appraise Assets of Acquired Company for Financial Reporting Under Revised Accounting Rules Affecting Business Combinations
After making a billion-dollar-plus acquisition involving two of the five leading companies in the industry, a major building products manufacturer retained AccuVal to appraise the assets of the acquired company for financial reporting under revised accounting rules affecting business combinations. The revised rules affect both how business combinations are reported and changed how goodwill is accounted for.
The client required that the purchase price be allocated into three business reporting units. Complicating the engagement was the consideration of synergies brought by the transaction. AccuVal was selected for the engagement based on its experience in both the building products industry and intangible asset valuation experience.
AccuVal Approach
AccuVal assembled a seasoned valuation team to inspect and appraise the fixed assets at 10 locations of the acquired company. The lineup included experts from across the country who pooled their collective experience in valuing tangible and intangible assets, appraising inventories, conducting business valuations and analyzing sale-leasebacks under the revised accounting rules. AccuVal's valuation took into account the synergies brought about by the acquisition.
Bottom Line: Valuation Completed, in Full Compliance with Accounting Standards
Working together under intense time pressures, the AccuVal team maintained frequent communications with the client. Both management and the client's Big Four auditor concurred with the analysis and used AccuVal's findings in its 10-K filing.
The AccuVal AdVantage™
Deep experience working with the building products industry across the country. Recognized expertise in appraising intangible assets and preparing valuations for financial reporting purposes. The ability to adapt to unusual business situations and find innovative solutions involving multiple targets. That's The AccuVal AdVantage™ at work.
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