The professional services of IBA can be divided into three main areas: Business Valuation, Corporate Planning and Economic Analysis.
Want to know what it’s worth? IBA can answer that and provide advice to build the value. Valuations have been performed for many types of businesses, ownership interests and securities for many different purposes.
Types of businesses include C-corps, S-Corps, partnerships and limited liability companies. Ownership interests may be majority controlling or minority holdings, and common equity or limited partner interests. Securities may be common shares or preferred shares, and long-term notes or convertible debentures. Situations would be:
Valuations of controlling interests in common stock for a potential merger and acquisition.
Fair market valuations of minority limited-partner interests for IRS estate and gift tax purposes
Valuations of non-qualified stock options for SEC accounting and IRC 409A tax purposes.
Fair value accounting for intangible assets under a purchase price allocation for ASC 805 (formerly FAS 141), and goodwill impairment accounting under ASC 350 (formerly FAS 142).
Valuations for the privatization of foreign state-owned enterprises in Europe.
Valuations of minority interests for trustees of ESOPs in compliance with ERISA requirements of the DOL.
Example: IBA was retained by the IRS for a major valuation project. Statistical analyses, such as multi-variate regression and determinant techniques, were employed to determine the illiquidity discounts for limited partnerships holding real estate. These discounts were then used by the IRS to review the partnership discounts being filed for estate tax purposes.
Where do you want to go? IBA can help put together the strategic plans for your business. Situations may be:
Aiding in long-range plans for strategic corporate objectives.
Preparing short-term budgets and forecasts.
Developing computer models to emulate pro-forma financial statements.
Example: A feasibility plan was completed for a waste management firm. We considered the economics of alternative dump sites, and built a computer model that projected the income and expenses of operating garbage collection to the different dumps.
What are your opportunities? IBA can analyze the general economic conditions for a country or region, analyze a particular industry, and develop studies of a specific market and product. Situations would be:
Transfer pricing study for Section 482 to determine the best method for allocating product revenues and taxable profits between countries.
Marketability study for tourists to a destination beach resort at a tropical location.
Feasibility study of a high-tech product for a start-up company in the first developmental stage.
Example: IBA was retained by firms in the Silicon Valley to address the depreciation and obsolescence of high-tech equipment. We pioneered a market based approach which used curvilinear regression analysis to provide a definitive answer. Afterwards, we were invited to join a three-member government task force , where our depreciation schedules were adopted for the whole State of California.