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| VALUATIONS AND LITIGATION SUPPORT |
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Business valuation and consulting support is required for many different reasons. Whether it is for tax and business planning, financial reporting, a transaction, shareholder stock plans, business or shareholder disputes or any other number of reasons, it is important to have qualified and experienced advice. Depending on the circumstances, we work with the owners and management team, your legal counsel and/or your tax advisors.
Our valuations team offers its services in two broad segments: 1) Valuations for transactions and business support and 2) Valuation support for disputes.
Valuations for Business Transactions and Business Support
Companies need independent valuation support for a variety of business purposes. Our team has worked across numerous industries with companies range in revenue from the very small to multi-billion dollar corporations – both public and private.
Transactions
Transactions can take a variety of forms including mergers/acquisitions, tax transactions (estate freezes, trust roll-ins), shareholder buy-in/exit. Not all require one of our Chartered Business Valuators to prepare a formal valuation report, but all should have the analysis and attention to detail that a valuations professional provides. All of our professionals are deeply experienced in tax planning valuation and in both notional and real-life transactions.
Fairness Opinions
We are experienced in providing public companies with an unbiased opinion as to whether a transaction is fair from a financial point of view. Fairness opinions can be necessary when a company is considering the sale of assets, a merger, corporate reorganization or going private – in most cases like these, it is required or highly recommended that the board of directors arm themselves with an independent fairness opinion.
Valuations for Financial Reporting
Our Chartered Business Valuators can provide you with the assistance you need to accurately report your financial position and meet fair value reporting compliance obligations under PE GAAP, US GAAP or IFRS. Generally speaking, the majority of this valuation support is for goodwill impairment testing, and tangible/intangible asset impairment testing (including oil & gas assets).
Purchase Price Allocations (PPAs) are often required when a company acquires another company or asset that, as a result of the transaction, results in goodwill or intangible assets being allocated to the acquiring company's balance sheet. While we have significant experience in performing PPAs, most companies perform the analysis internally. These says, more often than not, Prairie Advisory provides support to reporting groups in preparing analysis and conclusions that will be submitted to their auditors.
Litigation Support and Dispute Resolution
Having clear and thorough valuation support is critical to many different types of litigation, including the quantification of damages and shareholder disputes. Whether or not the file makes it to court or ADR - and requires an expert witness - having an experienced professional can make a significant difference to whether there is a positive or negative outcome.
Quantification of Damages
The quantification of damages can be needed for breach of contract, fiduciary duty, personal injury, business insurance claims, loss of business or employment or other matters. Whatever the circumstances, for a period of time we essentially become experts in the relevant business and industry and use our valuations, accounting, engineering and consulting experience to quantify and qualify our conclusions.
Shareholder Disputes
When business or general shareholders relationships are irreconcilably damaged, shareholders will often need business valuation support to determine an exit price or analysis around the assumptions used to develop an exit price. This can be an issue between 50/50 partners or it can be an issue for minority shareholders. Sorting out pricing and terms can lead to difficult and emotional situations that can be dealt with by an experienced professional.
Our shareholder dispute experience ranges from simple valuation support to leading the negotiations between the various parties.
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