Appraisal Economics Inc. valued dozens of privately held debt instruments due from companies, trusts, and high net worth individuals with an aggregate value of more than $40 million. Some of the debts were secured by specific collateral including interests in commercial real estate. Other promissory notes were only protected by the debtors’ general assets and creditworthiness. Appraisal Economics performed a detailed credit analysis to determine the appropriate discount rate for each security, and we calculated the fair market values of the underlying assets for estate tax purposes.

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Appraisal Economics Inc. valued rights to receive a portion of royalties on sales of one of America’s oldest and best known brands of oral care products. The royalties are paid by a $200 billion healthcare conglomerate, and are based on a contract originally signed in the 1800s. Appraisal Economics determined the fair market value of the royalties for estate tax purposes.

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Appraisal Economics Inc. valued a non-controlling interest in a holding company that owns a minority interest in a privately held international conglomerate that is headquartered in Russia. The operating company has several dozen subsidiaries in Europe and Asia that specialize in oil and gas, construction, telecommunications, and finance. Our valuation included analyzing the recent sale between third parties of shares of common stock in the underlying operating company. To determine the current value of the operating company’s common stock, we adjusted for changes in the company’s financial performance, industry and economic conditions, and currency exchange rates. The concluded value of the interest in the holding company that owns the conglomerate’s shares reflected incremental discounts for lack of control and lack of marketability. Our valuation was used for gift and estate tax planning purposes.

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Appraisal Economics Inc. has conducted a goodwill impairment analysis for a leading manufacturer of synthetic building materials. The company produces decking, railing, and lighting innovations, bathroom partitions, and a variety of other synthetic building materials and products designed to replace wood, metal, and other traditional materials for commercial and residential applications. Appraisal Economics valued the business enterprise to assess whether the company’s goodwill was impaired under ASC 350. Once goodwill is placed on the balance sheet due to an acquisition it must be tested at least annually for impairment.

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Appraisal Economics Inc. has conducted a purchase price allocation of a fully-integrated paper mill in the Pacific Northwest. A private equity firm acquired the producer of containerboard, kraft and specialty papers, unbleached kraft pulp, and corrugated packaging for total consideration in excess of $100　million. The company operates a pulp and paper mill that processes raw timber and recycles old cardboard boxes and sells its products primarily in North America and Asia. Appraisal Economics allocated the purchase price among the financial, tangible, and intangible assets of the company. The assets included real property in two countries, machinery and equipment, favorable power purchase agreements, trademarks, customer relationships, and goodwill. Once goodwill is placed on the balance sheet due to an acquisition, it is tested at least annually for impairment.

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Appraisal Economics valued a permit that conferred the rights to use patented technology underlying a unique coal gasification process. The technology provides the flexibility for the use of either conventional fossil fuel or alternative feedstocks such as biomass. This technology will be incorporated into a larger facility that will ultimately produce transportation fuels and electricity for sale into wholesale markets. The income approach was utilized, including an analysis of arm’s length royalty rates for similar technologies. The results of our study were used for financial reporting purposes.

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Appraisal Economics Inc. has conducted a purchase price allocation of a North American-based integrated manufacturer and wholesaler of branded and private label paper products. The company produces and sells paper towels, bathroom tissue, and napkins for the “at-home” and “away-from-home” markets. A publicly traded company purchased the business for cash and restricted shares. Appraisal Economics valued the restricted shares to determine the fair value of the consideration paid for the company, and then allocated the purchase price among the financial, tangible, and intangible assets of the company. The assets included machinery and equipment, contracts, a license to use the seller’s trade name, a non-compete agreement, customer relationships, and goodwill. Once goodwill is placed on the balance sheet due to an acquisition, it is tested at least annually for impairment.

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Appraisal Economics Inc. has conducted a valuation of one of the leading producers and distributors of fresh and packaged seafood. The company processes and delivers a wide range of fresh and ready-to-cook seafood to supermarkets, club stores, and restaurants in the United States and select international markets. The company sells both wild and farm-raised fish, including species such as salmon, tilapia, mahi mahi, and shrimp. Appraisal Economics valued a tenant-in-common interest in a block of the company’s equity for estate tax purposes.

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Appraisal Economics Inc. valued an outperformance plan (OPP) for a publicly traded REIT for quarterly financial reporting purposes. OPPs and long-term incentive plans (LTIP) are forms of stock-based incentive compensation that allow executives and employees to share in the incremental value created for shareholders by share price appreciation and dividends during a defined performance period. Unlike plain vanilla stock options, OPPs and LTIPs are more customizable, allowing a company to set absolute or relative performance goals. Examples include achieving specified levels of total shareholder return relative to a benchmark stock index or a defined peer group of other publicly traded companies. Appraisal Economics Inc. helps companies design, value, and assess the interim performance of these derivative securities.

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Appraisal Economics Inc. valued certain hardware/software products, and related technical support services owned by a major U.S. professional sports league. The league received discounts off the list prices of certain products and support services in exchange for sponsorship benefits. We determined the reasonableness of these discounts and estimated the fair value of the products and support services by comparing the discounts negotiated by the league to typical discounts offered to the supplier’s other contract partners. Appraisal Economics was engaged to value the hardware/software and related support services for financial reporting purposes.

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