Valuation Advisory Services
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.
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.
Solutions
Common solutions for our financing and investment clients include:
We help with questions like
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.
The answer is simply, “What will your audit firm accept.” We provide all three solutions.
We provide preliminary estimates to determine if the fair value step up of the acquired assets is worthwhile to the acquiror.
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.
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).
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.
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.
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.
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.
Our specialists have a great deal of experience providing financial reporting valuations for compliance with international and domestic accounting standards.
Client Highlights
Here are a few client success stories from public and private companies we’ve worked with
