Here’s what we’ve been up to in these two key areas of our business:

Corporate Finance

  • Determining the fair value of the equity of a medical device manufacturer for financial reporting purposes in conjunction with its imminent IPO, and allocating such value among the entity’s common stock, convertible preferred stock and common stock options. In doing so, we considered the applicability of four commonly used methods for valuing equity securities: the current value method, the option pricing method, the probability-weighted expected return method (commonly referred to as “PWERM”), and the hybrid method.
  • Assisting the owners of an established offshore technology company by preparing a multi-method pricing analysis for purposes of evaluating a merger with another nonpublic business. After the merger, the combined entity was to be sold to a foreign public company.
  • Determining the fair market (and fair) value of minority interests in a private operating company, in conjunction with sales of those interests to a public company.
  • Providing assistance in determining fair market rental rates for tangible assets being contributed to a joint venture.

Transfer Tax

  • Determining the fair market values of a decedent’s ownership interests in over 50 closely held entities, for estate tax filing purposes. A high-pressure engagement with many complexities, we determined the fair market values of the ownership interests in question and issued an accompanying 700+ page narrative report, on budget, and ahead of schedule within an extremely short time frame.
  • Successfully assisting counsel in achieving audit settlements with the Service involving gifts and sales of minority interests in several large ($500 million-plus in sales) client companies.