Strategic acquisitions offer companies the opportunity to rapidly grow and/or position themselves for future growth. One of the biggest mistakes that we see when businesses make acquisitions is overpaying for a target. Our Valuation and Litigation Advisory Services Group valuation experts are able to provide you with analyses that will help you make optimal acquisition decisions. Our team is also able to assist with other aspects of the due diligence and transaction process.
Not every valuation is driven by a “need” for compliance (e.g., tax filings, domestic relations matters, financial reporting). We are able to tailor our services to provide businesses with an indication of their value based on a number of different valuation approaches. Business owners and executives can then use this information for strategic planning purposes to reach their goals.
When a business changes hands, there is often considerable value paid in excess of the target’s tangible assets. Such scenarios often result in the existence of material intangible assets. Our Valuation and Litigation Advisory Services Group is able to assist companies and their auditors with determining the fair value of any intangible assets acquired in the purchase of a business to meet the necessary financial reporting requirements.
Fairness opinions not only provide a board of directors with financial information to assist them in making decisions, but they also serve as factual evidence in the event of litigation, in order to demonstrate that the board used reasonable business judgment in making a decision on behalf of the company’s shareholders. When a potential transaction necessitates a company’s board of directors and management to obtain a third-party opinion regarding the fairness of the transaction to the company’s shareholders, our professionals are able to efficiently perform the valuation analysis to satisfy this requirement.
Making an acquisition is a significant event for any company and overpaying for the target company can cause significant financial issues down the road regardless of how attractive the target looks today. Further, if equity of the acquiring company is being issued to the seller, the value assigned to the acquiring company can be just as important as the value assigned to the target company. Our valuation team can help you navigate the financial complexities of acquisitions and help you understand if you are getting what you are paying for. Our team is also able to assist with other aspects of the due diligence and transaction process.
Business acquisitions typically involve detailed purchase agreements and other legal documents. It is not uncommon for one of the parties involved in the purchase/sale of a business to file a complaint against the other party alleging that certain terms of the purchase agreement were not followed. Our Valuation and Litigation Advisory Services Group has worked with both buyers and sellers in these situations to determine the amount of damages incurred, if any, as a result of an alleged breach of the terms of a purchase agreement.
In any sort of ownership transaction involving a privately-held business, the value at which the transaction will take place is often the primary concern of the parties involved. Our experienced and technically detailed valuation experts are able to prepare valuation analyses that can withstand attack from opposing parties—and allow you to feel confident in the determined value.
For more information about our services related to merger and acquisition valuations, please complete the form below or call 440-449-6800.