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Valuation Engagements: A Sample Listing

Following are descriptions of recently completed representative valuation engagements

Business Valuation: Shareholder Litigation

For purposes of a shareholder buyout pursuant to A.R.S. § 10-1434 (election to purchase in lieu of dissolution), we provided an expert report and expert witness testimony as to the fair value of a 50% equity interest in a large healthcare-related entity. The subject company had multiple business units and several contingent liabilities that were factors in the valuation.

Expert Witness: Commercial Bankruptcy

In the bankruptcy of a 150-unit affordable housing development, we provided an expert report and expert witness testimony in U.S. Bankruptcy Court concerning the appropriate interest rate for a cram-down loan proposed in the Debtor’s Plan of Reorganization.

Intangible Asset Valuation: Financial Reporting

We performed a valuation of acquired intangible assets, pursuant to ASC 805, for a national provider of identity theft protection services. The target company’s assets included customer relationships and developed software technology.

Business Valuation: S Corporation Conversion

We were retained to estimate the fair market value of a large healthcare entity for purposes of a conversion from a C corporation to an S corporation. The valuation was performed to determine whether a net unrealized built-in gain existed as of the conversion date.

Business Valuation: Marital Dissolution

The parties to a divorce jointly retained us to value their technology company, which develops and publishes electronic medical records (EMR) software.

Forensic Accounting: Commercial Litigation

To assess various claims made by the parties in a commercial litigation proceeding in Pima County Superior Court, we analyzed thousands of pages of financial reports and other documents in connection with multiple transactions and provided an expert report and expert witness testimony.

Intangible Asset Valuation: Financial Reporting

We performed a valuation of acquired intangible assets, pursuant to ASC 805, for a leading content delivery network. The target company’s assets included developed software technology, customer lists and contingent consideration.

Business Valuation: Merger & Acquisition

We provided valuation advice to investors contemplating the purchase of an equity stake in an emerging consumer products company that was preparing for a national rollout of its product lines to big-box retailers.

Apportionment Analysis: Marital Dissolution

We quantified the increase in the value of a separate property business during the parties’ marriage and determined, pursuant to Arizona law, the amount of any increase in value that should be apportioned to the marital community.

 

Forensic Accounting: Marital Dissolution

We performed a detailed tracing analysis to determine whether certain separate property assets that were acquired prior to marriage were traceable as separate property and had not been commingled with income earned and other assets acquired during the term of the marriage.

Litigation Support: Lost Individual Earnings

In seven separate engagements during 2011, our firm provided expert opinions related to calculating individuals’ lost earnings stemming from personal injury or alleged workplace discrimination. Our firm provided opinions in these matters at the request of plaintiff’s counsel, defendant’s counsel or the insurer.

Forensic Accounting: Marital Dissolution

The Court appointed our firm to serve as the expert in a marital dissolution. The results of our analysis, expert report and expert witness testimony were used by the Court to assist in determining husband’s income for spousal maintenance and child support purposes.

Derivative Valuation: Financial Reporting

Pursuant to ASC 815 and utilizing a contingent claims analysis (option theory) methodology, we determined the value of multiple classes of preferred securities, with warrants, issued for a software company. While the preferred securities were classified as equity, the warrants were deemed a liability and required re-measurement on an annual basis.

Business Valuation: Gift and Estate Tax Reporting

A large Arizona fabricator of steel products retained us to perform a business valuation for purposes of estate tax reporting. The subject company had various classes of common stock with differing voting rights, which required additional analyses to apportion overall business value to the various classes of common stock.

Fractional Interest Valuation: Gift and Estate Tax Reporting

In 2011, the firm valued 23 family holding companies (family limited partnerships, LLCs, etc.) that held real estate, marketable securities or promissory notes. Our valuations were performed in connection with the gifting of interests in those holding companies or for estate tax reporting purposes. The total of the cumulative assets held by the 23 appraised companies exceeded $350 million.

Valuation of Common Stock: Financial Reporting

Pursuant to ASC 718, we performed a valuation of common stock in a multiple-class, complex capital structure for purposes of issuing incentive compensation. The subject company had various classes of preferred securities for which valuation required a contingent claims analysis (option theory) methodology.

Business Valuation: Merger & Acquisition

We performed valuations of a newly formed accountable care organization (ACO) and the contributed intellectual property. The valuations were performed to determine the relative equity ownership to investors in a multiple-party merger.