Private Equity
Hedge Funds
BDCs
Financial Institutions
Marshall & Stevens provides independent valuation advisory services to investors across the spectrum. Our in-house specialists deliver independent opinions of value of businesses, securities, intangible assets, machinery & equipment, and real estate. Most of this work is referred to us by attorneys, accountants and transaction advisors.
Common solutions for our financing and investment clients include:
- Fairness Opinions
- Finance, Accounting and Staffing Solutions
- Financial Reporting Valuations
- Valuations for Financing / Investment
- Portfolio Valuations
- Solvency Opinions
- Tax Planning and Reporting Valuations – personal and corporate
- Valuation Consulting for Matters of Dispute
Our team includes senior valuation professionals with experience working at international audit firms, investment banking, finance companies and other valuation firms. The diversity of talent and experience is available as needed to provide the best solution to each client.
We help with questions like:
What are the pros and cons to having valuations done following private company GAAP vs. full GAAP?
If a company has their purchase price allocation and other financial reporting done for compliance with private company GAAP and then goes public (IPO, SPAC, merger, etc.), the financial reporting will have to be redone and restated to meet the public company standard prior to going public. The initial small cost savings of following private company GAAP for acquisitions is far outweighed by the cost to redo the work in the future.
Why not have negative and positive assurance letters done for portfolio investments instead of full independent valuation analyses?
The answer is simply, “What will your audit firm accept.” We provide all three solutions.
Is there a material depreciation benefit to stepping up the value of acquired assets on vs taking them over at book value?
We provide preliminary estimates to determine if the fair value step up of the acquired assets is worthwhile to the acquiror.
Can one firm provide liquidation value, fair value, fair market value, and insurable value of the same assets or do I have to engage multiple firms?
Upon request, we provide diverse value opinions for the same assets based upon the purpose and standard of value to efficiently accommodate the need for financing, financial reporting, tax reporting, and insurance. The efficiency in performing all these analyses at the same time leads to pricing benefits for our clients.
Why should I spend resources determining if the seller’s fixed asset list is accurate?
We perform onsite inspections of facilities to improve the accuracy of the asset records and the valuation analysis. Site inspections keep investors from capitalizing and paying for property taxes and insurance on assets no longer owned or in use (aka Ghost Assets).
Why shouldn’t I just rely on a broker or assessor for the real estate value?
Real estate should be looked at strategically for potential beneficial tax reporting, financial reporting, depreciation including cost segregation and bonus depreciation, financing including sale leaseback, etc.
The fair market value of acquired real estate is often much higher than the seller’s capitalized basis and the allocation between land (not depreciable) and improvements (depreciable) is often different than what the assessor has determined.
For financial reporting, the value of acquired real estate needs to be allocated to land, building and improvements, and intangible assets.
What are the tax benefits of a cost segregation analysis on the real estate?
The accelerated depreciation benefits (tax savings) from a cost segregation analysis on acquired real estate (sometimes just tenant improvements) can typically pay for a material percentage of the transaction costs and/or multiple financing payments.
Why do I care if the lease rate of the acquired real estate is at fair value?
Financial reporting compliance requires a determination of fair lease rate.
A large percentage of transactions include lease agreements that are not at current fair market value. This is more often the case when the owner of the business is also the owner of the real estate.
In the acquisition of a medical practice, for instance, the acquiror must not pay a higher than market rate to acquire or lease the property from the seller.
Why use a complex option pricing model rather than a simple probability weighted analysis for the valuation of earnouts, management incentive units, profit units, and other equity instruments?
Each audit firm has their preference for the way certain financial instruments should be valued. We initiate a call with the audit team before performing the analyses to reduce the potential for delays and surprises.
Can you provide financial reporting analyses in accordance with international accounting standards and US GAAP?
Our specialists have a great deal of experience providing financial reporting valuations for compliance with international and domestic accounting standards.