Services

Valuation Advisory Services

Scott Valuation provides a wide range of advisory services across various valuation specializations - each with its own unique methodologies, drivers, and deliverables. Our suite of valuation advisory services ranges over the entire investment/transaction lifecycle from early-stage disruptive technology to family succession of mature business operations.

We have broad quantitative and technical expertise, deep knowledge of the capital markets, and a talent for innovative problem solving that, when paired with our quantitative models, enable our clients to make decisions based on solid analysis rather than instinct.

 

Purchase Price Allocations (ASC 805 & IFRS 3)

In preparation for an acquisition or after it closes, our clients look to Scott Valuation to determine the fair value of assets and liabilities for financial reporting purposes. We work closely with technical accounting experts who determine the needed journal entries to bridge the closing and opening balance sheets. As GAAP and IFRS accounting standards for acquisitions change, we stay on top of guidance on best practices for ASC 805 and IFRS 3.

Services include:

  • Allocation of purchase price to goodwill
  • Allocation of goodwill and intangibles across reporting units
  • Valuation of Intangible assets:

Marketing Related

    • Trademarks, trade names
    • Trade dress (unique color, shape, or package design)
    • Internet domain names
    • Noncompetition agreements

Artistic Related

    • Books, magazines, newspapers, other literary works
    • Plays, operas, ballets, musicals
    • Musical works, compositions, song lyrics, advertising jingles
    • Pictures, photographs
    • Motion pictures, music videos, television programs

Contract Based

    • Off-market leases
    • Licensing, royalty, standstill agreements
    • Service or supply contracts
    • Franchise agreements
    • Operating rights
    • Right-of-Use, drilling, water, air, mineral, timber, route, tarmac

Technology Based

    • Patented technology
    • In Process Research & Development (IPR&D)
    • Computer software
    • Unpatented technology
    • Databases
    • Trade Secrets
    • Formulae and recipes

Customer Related

    • Customer lists
    • Order or production backlog
    • Customer contracts and contractual customer relationships
    • Noncontractual customer relationships

 

Goodwill Impairment (ASC 350 & IFRS IAS 36)

Goodwill and certain intangible assets under business combination accounting require annual and trigger-based testing. Scott Valuation helps clients manage the ongoing issues resulting from acquisitions.

  • Annual impairment testing of goodwill
  • Impairment testing for other intangible assets

 

Complex Financial Instruments & Securities Valuation

Scott Valuation’s CFI team specializes in valuation and consulting related to complex securities and other financial instruments for financial reporting, tax planning, and investment decision making. Our team of specialists has broad quantitative and technical expertise, knowledge of the capital markets, and a talent for innovative problem solving that, when paired with our quantitative models, enable our clients to make decisions based on solid analysis rather than instinct.

  • Profits interests requiring risk-neutral Monte Carlo simulation

  • Contingent consideration/earnout

  • Rollover consideration

  • Convertible notes/securities

  • Complex capital structures

  • Embedded derivatives

  • Equity compensation

  • Preferred equity instruments

  • SPAC-related instruments

  • Interest rate derivatives

  • FX derivatives

  • Exotic equity derivatives

 

Equity Compensation

When granting or measuring the impact of equity awards and complex securities, clients routinely turn to us to perform an in-depth valuation analysis. Scott Valuation clients use our equity compensation services in the planning, design and granting of equity awards for financial reporting and tax compliance.

We use custom-built proprietary valuation models for Black-Scholes option pricing, risk-neutral Geometric Brownian Motion Monte Carlo simulation, binomial lattice, and real options analysis and a deep understanding of the relevant guidance, including IRC 409A, ASC 718, IFRS 2, and the AICPA Practice Aid.

  • Pre-award planning

  • Waterfall analysis

  • Pre-IPO stock option and common stock valuation

  • Valuation of profits interests

  • Performance and time vesting awards using Monte Carlo simulation

  • Consideration vs. employee compensation for business combinations

 

Tax Valuation

We serve owners, CFOs, controllers and tax advisors a trusted valuation advisor for the implementation of tax planning strategies that can withstand scrutiny. Our quantitative approaches to value help clients make key tax decisions and optimize tax structures amid ever changing state, federal, and country-specific tax laws and changes in regulatory requirements.

Our team of seasoned valuation specialists provide:

  • Custom tax valuation solutions that comply with changing regulatory requirements

  • Robust analysis and research, documentation, and best-practice methodologies

  • A collaborative process where we work side-by-side with your internal team and your tax advisors to ensure accurate and defensible tax valuation reports

 

Intellectual Property Valuation

IP Valuation for:

  • Design patents / Utility patents
  • Trademarks & brand
  • Music copyrights
  • Literary copyrights
  • Technology
  • Know-how
  • Trade secrets
  • Recipes and formulas
  • Celebrity endorsements
  • Celebrity image & likeness
  • Sports franchise valuations

 

Music Copyright Valuation

We have provided valuation opinions for the music copyrights of hundreds of artists including Black Eyed Peas, Michael Jackson, John Denver, Sly Stone, and Elvis Presley.

  • Writers share

  • Publishers share

  • Master recordings

  • Joint ventures

 

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