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Welcome to The Financial Valuation Group Home Page - Business Valuation and Litigation Support
      
    
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valuations and related issues
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Building Value
Offices
and Contacts
Royalty
Rates
Thousands
of Transactions
Sorted
By SIC
and NAICS Codes
Managing
Directors
Terry
J. Allen
Midwest
Stephen J. Bravo
Boston, MA
Michael
A. Crain
Ft. Lauderdale, FL
John R. Gilbert
Great Falls, MT
Steven D. Hyden
Tampa, FL
Robert
Lanz
Silicon Valley, CA
Michael J. Mard
Tampa, FL
Michael J.
Mattson
Chicago, IL
John J.
Mayerhofer
Oakland, CA
Ralph
Ostermueller
St. Louis, MO
Charles H.
Preston
Los Angeles, CA
James S. Rigby
Los Angeles, CA
Founding
Member
Financial
Consulting
Group, L.C.
The
Financial Valuation Group (FVG)
is one of the leading business valuation consulting and
litigation service firms in North America. We
are one of the largest independent business appraisal firms
and we provide services throughout the United States and Latin
America.
Valuation of Private Company Stock Options
Proposed regulations under Internal Revenue Code
Section 409A are expected to significantly impact
the need for private companies to support their
determination of fair market value in setting
exercise prices for stock options and other stock
based compensation.
While there are a number of exceptions and safe
harbor provisions in the proposed regulations, they
are largely based on a presumption that fair market
value has been determined on a reasonable basis
using recognized methods and adequate documentation.
If an exercise price is found to be less than fair
market value, adverse tax consequences for the
recipient can include taxation at the time of
vesting rather than at the exercise date and a 20%
penalty. The company would have tax withholding
responsibilities at the time of vesting and
potentially for additional amounts if the stock
value increases over time.
Companies can support their determination that
exercise prices are set at fair market value by
using one of the following methods:
Independent Appraisal
- A valuation by a qualified independent appraiser
as of a date that is no more than 12 months before
the transaction date.
Inside Written Valuation
– Companies that have been in business for ten years
or less and are not expected to undergo a change in
control or go public within 12 months may rely on a
written report by someone who is not independent of
the company, such as a CFO or board member, if such
person has significant knowledge and experience or
training in performing similar valuations.
Formula Valuation
- A valuation based upon a formula such as a
percentage of company revenues. This method can only
be used under rather narrow conditions that will
likely make it unavailable to most emerging growth
companies.
The Financial Valuation Group provides independent
appraisal and valuation consulting services through
our network of 12 U.S. offices. We can perform the
timely independent appraisals companies need to
support their determination of fair market value for
stock option pricing. We can also provide consulting
assistance to companies that prefer to prepare
inside valuations.
The
Financial Valuation Group's staff of full-time
consultants and appraisers brings together a strong
combination of professional expertise and training.
CPAs, MBAs, ASAs, economists, engineers, JDs and
MAIs unite their disciplines with their consulting
and entrepreneurial experience as business people.
This mix of professional business experience
provides the firm with comprehensive skills and
business acumen. The backgrounds of our
professionals encompass a wide range of consulting
and valuation experiences, which span many
industries resulting in the ability to quickly and
accurately assess your consulting/economic
requirements from a practical standpoint.
Valuation
for Financial Reporting
(To order, click here)
Valuation for Financial Reporting
Fair Value Measurements and Reporting Intangible
Assets, Goodwill and Impairment - Second Edition
Valuation for Financial Reporting (second
edition)
provides practical implementation guidance to
practitioners, auditors, and their clients in
the private and public sectors. This guide
explains the new valuation aspects now required
by SFAS 157. This second edition:
Explores in-depth the new definition of fair
value
Discusses the fair value hierarchy of SFAS
157
Distinguishes fair value from fair market
value
Discusses best practices for the valuation
of in-process research and development and
other intangible assets
Presents detailed case studies and examples
of applying and implementing SFAS 141, 142,
144, and 157
Illustrates a purchase price allocation case
study in both a traditional narrative
valuation report and in a new USPAP
compliant PowerPoint™ presentation format
Examines the valuation industry’s reporting
standards with cross-referencing and
reconciliation across all of the valuation
organizations
Provides implementation aids and much, much
more
To order, click here
This book is written by nationally recognized
practitioners with over seventy years of
combined experience performing and defending
intangible asset valuations.
Michael J. Mard, CPA/ABV, ASA
James R. Hitchner, CPA/ABV, ASA
Steven D. Hyden, CPA/ABV, ASA
Driving Your Company's Value: Strategic
Benchmarking for Value
(click here to order)
Driving Your Company's Value: Strategic
Benchmarking for Value is a step-by-step book
presenting a valuation-oriented methodology
that helps companies maximize shareholder
value. It offers clear, concise, and concrete
methods for management to create and preserve
value, complete with case study applications.
In an easy-to-read format, it brings together
the aspects of the Financial Accounting
Standards Boards' new performance
measurements, the balanced scorecard, and the
new guidelines on fraud detection and
Extensible Business Reporting Language (XBRL).
·
Identifies the critical decisions that most
effectuate growth and value.
·
Covers the easy and reliable ways to monitor
value of an entity.
·
Demonstrates how management can apportion and
allocate resources to achieve the highest
value.
Financial
Valuation Applications and Models (click
here to order)
FVG
Managing Directors are among the 25 leading
appraisers who are co-authors of
the new book Financial Valuation
Applications and Models. The
1,000+ page book
was edited by Jim
Hitchner, with the following FVG
co-authors: Terry
Allen, Mike
Crain, John
Gilbert, Steve
Hyden, Mike
Mattson, Mike
Mard, and Jim
Rigby. According to Shannon Pratt,
CFA, FASA, MCBA, "The book has a wealth
of detail, practice tips, examples, and
extra information, plus sections on business
valuation situations not addressed
elsewhere. A valuable addition to the
literature of business valuation."
There is also a
companion 240 page Financial Valuation
Workbook written by Jim
Hitchner and Mike
Mard that can be ordered by
clicking here. This workbook applies
valuation theory to real-world business
environments, providing a detailed case study,
models, and exercises that can cut the
novice’s learning curve in half and assist
experienced practitioners in better organizing
the valuation process.
Accounting for Business
Combinations, Goodwill and Other Intangible Assets
The Financial
Accounting Standards Board (FASB) recently issued two new
Statements of Financial Accounting Standards, No. 141 (SFAS
141),
Business Combinations, and No. 142 (SFAS 142), Goodwill and Other
Intangible Assets. The new standards dramatically change the
accounting and purchase price allocation for all future mergers and acquisitions, as well as
past acquisitions accounted for as purchases.
Our
accounting and valuation professionals can assist you in
complying with the new FASB standards. We provide you
experience, independence and auditability in areas such as the
following:
Establish
implementation plan
Identify
reporting units
Determine
identifiable intangible assets
Perform
valuations of reporting units and individual assets
Purchase
price allocation
Determine
useful lives
Perform
impairment tests
Determine
residual values
Analyze
effects of pending or proposed acquisitions, dispositions
and reorganizations
Document
methodologies, assumptions and calculations
We have added a checklist to
our website that will guide you through the disclosure
requirements under SFAS 141/142. Click
here to view the checklist. (Adobe Acrobat
required)
Read
more about SFAS 141 and SFAS 142 and the services we provide.
Intellectual
Property Transaction Database
Only recently
have advances in information technology and the increasing
availability of online public records made research of
intellectual property transactions a realistic endeavor. The
results of the research have made available a new level of
precision whereby expert witnesses, negotiators and valuers
can now draw upon detailed terms of arm's length transactions,
allowing deeper insight into accurate returns (such as royalty
rates and upfront fees), time horizons and market risk. The
intellectual property professional with requisite skill,
education and experience will be able to draw upon the data to
form better-founded and defensible conclusions and opinions.
Services We
Provide
We are a consulting firm with
an orientation toward financial investment analysis.
Although engineers/appraisers can do extensive cost
analysis, the modern investor needs consultants and business
appraisers who can also understand business strategies,
market research, and the investment oriented market and
income approaches to value. This is especially needed
when analyzing intangible assets such as business equity
investments, goodwill, intellectual properties, or
trademarks.
As an organization working in
business valuation and litigation support, we value:
Corporate Securities
Closely Held Businesses
Partnership Interests
Business
Operations-subsidiaries, divisions, profit centers
Intangible
Assets-covenants not to compete, customer lists,
contract rights and core deposits
Intellectual
Property-patents, trademarks, trade names, software
copyrights and trade secrets
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