Mergers and Acquisitions
Appraisal Economics has been providing mergers and acquisitions-related valuation services for over 25 years. We offer a full range of services that covers each step of the transaction process. We can provide pre-transaction strategic analysis and due diligence to help evaluate a potential deal. Boards of directors engage us to provide fairness opinions addressing whether the structure and terms of the proposed transaction are fair, from a financial point of view, to the buyer and the seller. Lenders often require a solvency opinion from an independent valuation expert to ensure that the borrower’s assets exceed its liabilities, and that the borrower will be able to pay its debts as they become due if the transaction is consummated as proposed. In some cases, we play an advisory role to assist in determining an appropriate purchase price.
We also offer post-transaction valuation services. We provide purchase price allocations, where the consideration paid for an acquired entity is allocated among its financial, tangible, and intangible assets for accounting and tax purposes, and the asset values are recorded on the starting balance sheet. In subsequent accounting periods, companies hire a valuation firm to test the carrying value of the goodwill reported on the balance sheet for impairment. Private equity firms and other institutional investors frequently use third-party experts, such as Appraisal Economics, to assist with the quarterly portfolio valuations used to “mark to market” each illiquid investment. We have the expertise to value a wide array of asset types, including equity and debt investments, machinery and equipment, real estate, and intangible assets, including intellectual property.
Our clients include Fortune 500 companies, private equity firms, and smaller closely held businesses. We have deep experience in a wide variety of industries, including consumer products and services, energy, food and beverage, medical and pharmaceutical, metals and mining, paper and forest products, and technology, to name just a few. We are engaged to assist with sales, pre-IPO work, dividend recapitalizations, debt refinancings, and leveraged buyouts and management buyouts. Our work has taken us all over the globe, completing assignments in locations such as South and Central America, Europe, and Asia.
Whether you need pre-transaction due diligence for a potential acquisition, or a purchase price allocation and portfolio valuation afterwards, Appraisal Economics can provide robust analysis and well-supported documentation to meet your valuation needs. For additional information about our comprehensive valuation services, please contact us today.