enterprise valuations

The significance of valuations is increasing, whether aiding in fulfilling financial reporting requirements, tax preparation, litigation, or mergers and acquisitions.  mba’s unique background and in-house skillset uniquely positions the firm to provide both both public and closely-held private businesses with valuation services.

Business valuations are crucial for a wide range of transactions and compliance requirements.  Performing a credible valuation requires broad comprehension of strategic influences and technical expertise in the application of valuation methodologies.  mba harnesses years of technical skills and experience, specializing in aviation-related business valuations, and has valued airlines, aircraft lessors, and aircraft manufacturers for owners and investors alike.

frequently performed business valuations

FASB ASC 805 (previously SFAS No. 141R) requires that all assets and liabilities of the acquired company are adjusted to their Fair Values as of the date of acquisition when an acquisition is recorded. Often, this requires the independent valuation of the business interest (or assets), an allocation of the price to the identifiable tangible and intangible assets acquired, and to goodwill.

FASB ASC 350 (previously SFAS No. 142) requires companies to test whether there is an impairment of goodwill when an acquisition is recorded.  Part of this analysis is comparing Fair Value of the invested capital with its Book Value.  If the appraised value is less than the Book Value, the company must determine the extent of the impairment. Similar to the accounting when the acquisition is made, an independent valuation must be done allocating the value for the group to its tangible assets, intangible assets, and goodwill.  The impairment is deemed to be the difference between the Book Value of goodwill and the value of goodwill determined by the independent valuation.

mba provides purchase price allocation valuations for compliance with ASC 805 and ASC 350 accounting rules.

mba provides valuations of interests in closely-held businesses in preparation for gifting these interests, buy / sell agreements, as well as other estate planning services.

It is required that the taxpayer provide substantiation for the values utilized for estate and gift tax returns.  Values transferred must be recorded at Fair Market Value, as defined by the Internal Revenue Service (IRS).  mba’s valuations provide a Fair Market Value Opinion that is compliant with Revenue Ruling 59-60 and other IRS standards.

mba keeps pace with all updates and changes to applicable tax case law, and revenue rulings which enables them to provide objective analyses that are defensible based on the most recent market data and valuation industry data.

In order to ensure compliance with FASB 123(R) / ASC 718 Stock Based Compensation, companies are required to monitor all equity related compensation, calculate Fair Value, adjust employee income tax, and potentially record liabilities for the value of such compensation. Depending on the how many employees are receiving awards, how often the grants are made, and the complexity of the terms, ongoing management and compliance can pose a significant drain on a company’s accounting department.

mba provides independent third-party valuations for FAS 123R / ASC 718 compliance through analysis of business and financial plans, projections, as well as comparable companies and transactions.