Valuation
Valuation and advisory firms trust Aritaus for expert outsourced services, with a skilled team delivering successful engagements to help clients grow their businesses
Valuation and advisory firms trust Aritaus for expert outsourced services, with a skilled team delivering successful engagements to help clients grow their businesses
Valuation and advisory firms rely on Aritaus for exceptional outsourced services. Backed by a team of skilled valuation experts, we have successfully completed numerous engagements, helping clients scale their businesses effectively.
Purchase Price Allocation - Whether it’s a merger, acquisition, or any other business combination, these transactions involve complex agreements governing the transfer of various assets and liabilities. The consideration paid may include stock-based compensation—requiring fair valuation for private acquirers—or earnout payments tied to financial or operational milestones. Accurately valuing stock consideration, earnouts, and both tangible and intangible assets and liabilities at the transaction date demands a meticulous, multi-approach valuation process.
Good will impairment - As the global economic landscape evolves rapidly, asset fair market values are becoming increasingly volatile. With accounting and reporting standards shifting towards the “mark-to-market” approach, businesses must periodically revalue and restate illiquid assets, particularly intangible assets, in their financial statements.
Complex financial Instruments - Major business agreements often contain intricate terms and conditions that give rise to various embedded derivative financial instruments, such as convertible notes, synthetic options, swaps, warrants, and other derivatives. Global financial reporting standards require these instruments to be fair valued and disclosed in financial statements. However, accurately valuing such complex financial instruments demands a deep understanding of contract structures and specialized expertise.
Stock Compensation - Companies frequently offer equity- based compensation, including stock options, restricted stock units (RSUs), stock appreciation rights (SARs), and other equity awards to employees. These plans often come with complex terms, such as vesting schedules tied to company performance and payout dates contingent on future events
Portfolio Valuation ASC 946/IFRS 13- Under ASC 820/ ASC 946, private equity funds, hedge funds, pension funds, investment banks, and other institutional investors are required to periodically "mark-to-market" the values of their portfolio investments for reporting to investors. Portfolio valuation demands a thorough understanding of market conditions, the specific assets, the company and its competitors, as well as both financial and non-financial information. This process becomes particularly complex for private investments, which often lack sufficient market data for comparison.
Lease Accounting- The new IFRS 16 lease accounting standard took effect on January 1, 2019, for all companies, both private and public. Additionally, the FASB lease accounting standard (ASC 842) became effective for private companies starting after December 15, 2021 (calendar 2022). These standards require many leases to be brought onto the balance sheet, potentially having a significant impact on a business’s financial statements. One of the key judgments companies must make for lease asset and liability valuations is the discount rate assumption. The interest rate implicit in the lease can be determined through an incremental borrowing rate (IBR) analysis. We understand the complexities involved in this process and are well-equipped to provide an accurate assessment of the IBR for your needs.
Intellectual property- Valuing intellectual property (IP) assets is crucial for various purposes, including financial reporting, tax compliance, fundraising, and strategic transactions such as sales, mergers, acquisitions, or licensing. IPs—such as trademarks, patents, domain names, brands, and both completed and in-process research and development—are often foundational to the growth of companies and business units. Therefore, accurate valuation and proper reporting of IP are essential for clear communication with all key stakeholders, including shareholders, management, lenders, and regulatory authorities.
Aritaus offers comprehensive valuation services for tax and compliance purposes to valuation and advisory firms across the US. Our services include IRC 409a valuations, ESOP (IRS 401A) valuations, gift and estate tax valuations, S-Corp election valuations, and more.
All clients will be given unlimited 409a valuations for 12 months performed by NACVA certified valuation analysts.
Perfect for single business owners
Multiple Valuation Methods
Option Pricing Model allocation
5-Page Report: A concise summary of your valuation
Professional Guidance by Experienced Business Valuer: Get a 15-minute consultation session
If you're interested in getting a 409a, please feel free to contact us.
A 409a valuation is the process of determining the value of a company’s common stock to meet the legal requirements for issuing deferred compensation to employees under the Internal Revenue Code (IRC) 409a. This valuation must be performed at least annually or sooner if significant events occur, such as a new financing round or changes in the company’s operations.
ESOPs, governed by the Employee Retirement Income Security Act (ERISA) of 1974, are regulated by the Department of Labor (DOL) and the Internal Revenue Service (IRS). Over the years, ESOP plans have become increasingly complex to ensure compliance with evolving laws and align with the financial reporting of companies. This ongoing evolution has kept valuation experts on their toes, requiring them to stay up-to-date with the latest regulations, court rulings, and industry best practices to address new challenges.
A business, asset, or estate can potentially endure for generations, but its owner cannot. Therefore, it is crucial for business owners to establish an effective succession plan well in advance. Estates valued over $12.92 million (as of 2023) left without proper planning are subject to federal estate taxes of up to 40%, unless gifting to legal heirs is strategically planned. A key component of successful estate planning is minimizing estate tax through an accurate valuation of estate assets.
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