Valuation For Private Equity Firms

Private equity professionals engage Marshall & Stevens to assist them with a wide range of valuation services, from quarterly or annual valuations of their investments for both shareholder and financial reporting purposes, to Solvency Opinions in support of a recapitalization, purchase price allocations and Fairness Opinions on M&A transaction, and valuation of equity instruments for deferred compensation, our professionals provide the independence and transparencies that regulators and investors desire.

A large of percentage of our senior Financial Valuation professionals have experience working at international audit firms – they did the same review work your audit firm valuation professionals do – so they are a great resource to our clients.  We understand the materiality thresholds and focus on the important value drivers in order to keep the valuation work within compliance for a reasonable fee.

Value of Investments: Our Financial Valuation professionals provide an independent opinion of debt and equity instruments to assist our clients in complying with the following guidance:   

  • Debt and Equity Securities: FASB ASC 320
  • Equity Compensation: FASB ASC 718, IFRS 2 and IRC 409A
  • Derivatives and Hedging: FASB ASC 815
  • Financial Services—Investment Companies: FASB ASC 946

Complex financial modeling techniques required to value some of these instruments may include: Black-Scholes Option Pricing Model, Binomial Lattice and Monte Carlo Simulation.

Assurance Letters: Sometimes, all that is required is a positive assurance or negative assurance letter.  Our professionals are prepared to perform these analyses or as required, upgrade to detailed valuation analyses upon requested.

Carried Interest Studies for Wealth Transfer: We value carried interests in funds, both prior to investment and post investment, as part of a wealth transfer strategy for the benefit of heirs and charities.

Purchase Price Allocations: Our Financial, Equipment and Real Estate valuation professionals collaborate on multidisciplinary financial reporting assignments for an efficient well-integrated product and an easier review process for the investor and their audit firm.

Transaction Opinions – Independence and Expertise at a Reasonable Cost. 

  • Our professionals have great experience valuing enterprises in a wide range of industries, including the issuance of Fairness Opinions and Solvency Opinions.
  • Fees are not based upon the size of transaction, but rather on the complexity of analysis required and risk.
  • Our fees are not contingent upon the successful closing of any transaction, as opposed to the fees paid to your investment bank, and we do not have audit conflicts since we do not provide audit services. 

Fairness Opinions:  We analyze the fairness of a particular transaction, from a financial point of view, to the shareholders on either side (purchase or sale) of a public or private transaction.  

Solvency Opinions: Most often used by private equity in dividend recapitalization transactions, we opine on the ability of the corporate entity to service new financing.

For more information on these and other services, please see the service sheets and links to the right or contact one of the staff listed below.

Valuation For Private Equity Firms Contacts

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