Financial Reporting

What We Support

• Purchase price allocations: identification and valuation of acquired tangible and intangible assets and assumed liabilities.
• Goodwill and indefinite-lived intangibles: impairment testing and supporting analyses.
• Equity compensation: valuations for private company common stock and related analyses for option grants and other awards.
• Complex instruments: valuations for preferred equity, warrants, and other derivative or hybrid securities.
• Fair value measurements: recurring and non-recurring valuations aligned to measurement-date requirements.

Our Operating Principles

• Audit-ready documentation: assumptions, sources, and methods are explicit and reproducible.
• Calibration and consistency: where relevant, we reconcile conclusions to transaction pricing and prior measurement dates.
• Reasonableness checks: multiple methods, triangulation to market evidence, and transparent sensitivities.
• Project management: clear timelines, milestones, and coordination with auditors and internal stakeholders.

Purchase Price Allocation (Illustrative Scope)

1. Identification of Assets and Liabilities

• Working capital, fixed assets, leases, and assumed liabilities (as applicable)
• Intangibles such as customer relationships, developed technology, trade names, and non-compete agreements

2. Valuation Methodology

• Income approach: multi-period excess earnings method (MPEEM), relief-from-royalty, and with-and-without analyses
• Market approach: guideline public company and transaction benchmarks (where appropriate)
• Cost approach: replacement cost and reproduction cost for certain asset classes

3. Key Assumptions We Document

• Revenue growth and margins by line of business
• Attrition, contributory asset charges, and economic lives
• Discount rates, tax rates, and royalty rate support
• Working capital and capex reinvestment needs

Equity Compensation Valuations

For private companies, we support governance and compliance by providing clear valuation conclusions and a documented rationale for key inputs. Depending on circumstances, approaches may include income, market, and backsolve/calibration frameworks, alongside scenario-weighted methods.

• Capitalization table review and security rights analysis
• Selection of valuation approaches appropriate for stage and data availability
• Allocation of enterprise value across securities (as needed)
• Documentation aligned to internal review and audit expectations

Deliverables

• Formal valuation report or memorandum with clearly stated assumptions
• Supporting models and sensitivity analysis
• Management and auditor walkthrough support
• Measurement-date updates and refreshes as needed