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Valuations

 


Companies need valuations and appraisals for a variety of reasons. Thus, we at Mergium Advisors provide valuation and appraisal services for:



M&A (mergers and acquisitions):

  • Valuation of controlling interests

  • Valuation of lack of control interests


Financial reporting:

  • Business combinations: Determining the value of goodwill and other intangible assets in a business combination, in accordance with GAAP, ASC 805, ASC 820, and other applicable standards and regulations,

  • Non controlling interests (ASC 810),

  • Impairment testing: Annual goodwill, indefinite-lived intangible asset, and long-lived asset impairment testing in accordance with ASC 350, ASC 360, and ASC 820, and other standards


Tax purposes:

  • Purchase price allocation: Allocation services in accordance with GAAP, ASC 805, ASC 820, and other applicable standards and regulations

  • Gift and state taxes: Valuations for gift and estate and tax planning and for donations of noncash assets in compliance with IRC §170


Valuation of intangible assets:

  • Customer base,

  • in-process research, and development and technology,

  • Others


Valuation of intellectual property intangibles:

  • Patents,

  • Copyrights,

  • Trademarks,

  • Trade secrets, and

  • Know how


Other situations:

  • e.g. divorces



We might help you in a number of situations such as the following:


  • To provide a fairness opinion on a transaction so you can satisfy regulatory requirements or corporate governance issues.

  • Help you determine the price for an acquisition, sale of business or asset, or potential merger. Before you enter such a transaction, Mergium can provide formal pricing analyses helping you to ensure that you pay or receive the right price for a business, asset or division.

  • Support for litigation or arbitration.

  • Support to execute an international transaction.

  • You want to know and recognize the value of your assets for commercial, tax or regulatory purposes.



Mergium Advisors uses internationally recognized methodologies:


  • Discounted cash flow

  • Adjusted Book Value

  • Comparable transactions

  • Comparable companies being traded in stock exchanges

  • Others, as necessary



Our appraisals are done using USPAP (Uniform Standards of Professional Appraisal Practice) as promulgated by the Appraisal Standards Board of t he Appraisal Foundation. USPAP was created with the express purpose of promoting and preserving public trust in professional appraisal practice. It manages both, the ethical side and the performance side of appraisal practice, providing the common basis for all appraisal practice. The US Congress contributed to USPAP as the generally recognized standards of practice in the appraisal profession.


Thus, when performing business appraisals, Mergium fully follows USPAP, including its rulings regarding ethics, competency, scope of work, jurisdictional exceptions, and standards.



In doing appraisals, we follow the next steps and sequences:


  • Definition of the problem

    • Identify our client and the intended users

    • Identify the intended use

    • Identify the type and definition of value

    • Identify the effective date of the opinion

    • Identify the relevant characteristics of the property subject of the appraisal

    • Identify the assignment conditions

  • Determine scope of work

  • Data collection and analysis

  • Application of methodologies (see above)

  • Reconciliation of value indications and final opinion of value

  • Report of defined value opinions




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