In our most recent issue of Portfolio Valuation: Private Equity and Venture Capital Marks and Trends, we provide a brief digest and commentary of some of the most relevant market trends influencing the fair value of private equity and venture capital portfolio investments.
The Financial Reporting Blog
A weekly update on financial reporting topics curated by Mercer Capital’s Financial Reporting Valuation professionals.
Tradenames are valuable if customers associate the name with products or services that are of higher quality than alternate offerings. For the acquiring firm, such an association can lead to greater financial returns. However, a market participant acquirer will likely pay (up) for the privilege of continuing to use the founder’s name only if she expects the superior financial performances, as well as the signaling benefits, will be transferable.
Was it a bargain purchase or not? The SEC has reached a $6.2 million settlement with a Big 4 audit firm relating to auditing failures associated with Miller Energy Resources, an oil and gas company with activities in the Appalachian region of Tennessee and in Alaska. In late 2009, Miller acquired certain Alaskan oil and gas interests for an amount the company estimated at $4.5 million. The company subsequently assigned a value of $480 million to the acquired assets, resulting in a one-time after-tax bargain purchase gain of $277 million. Following the deal, the newly acquired assets comprised more than 95% of Miller’s total reported assets. This post will examine the particulars of the case and provide some observations on fair value accounting that can be gleaned from the SEC settlement order.
Do you have a clear picture of your company’s value and do you know if you are creating value in your early-stage FinTech company? Our upcoming webinar, hosted by Jay D. Wilson Jr., CFA, ASA, CBA, will identify the key value drivers for an early-stage FinTech company for investors, entrepreneurs, and potential partners.
This week, we feature two stories & one study, each of which highlights the need to analyze venture transactions in their entirety, rather than price.
- Bankruptcy and Restructuring Advisory
- Equity-Based Compensation Valuation
- Fair Value
- Impairment Testing
- Portfolio Valuation
- Purchase Price Allocation