FINANCIAL REPORTING VALUATION

In an environment of increasingly complex fair value reporting standards and burgeoning regulatory scrutiny, Mercer Capital helps clients resolve financial reporting valuation issues successfully.

We have the capability to serve the full range of fair value valuation needs, providing valuation opinions that satisfy the scrutiny of auditors, the SEC, and other regulatory bodies.

We also have broad experience with fair value issues related to public and private companies, financial institutions, private equity firms, start-up enterprises, and other closely held businesses. National audit firms consistently refer financial reporting valuation assignments to Mercer Capital.

Our professionals are nationally recognized as leaders in the valuation industry, and hold the most rigorous credentialing designations including the CFA, ASA, and CPA, among others, which are representative of the highest standards in the valuation and accounting industries. Mercer Capital has the institutional capability to tackle even the most uncommon or complex fair value issues. We understand the sensitivity of financial reporting timing needs and meet your deadline on time, every time.

Financial Reporting Valuation Services

Goodwill Impairment Testing

Mercer Capital provides independent valuation services to help clients test and measure impairment of tangible and intangible assets including goodwill.

Portfolio Valuation Services

Mercer Capital provides portfolio valuation services for hedge funds, business development companies, private equity firms, and insurance companies. We work with the company and its Board of Directors, audit committees and fund administrators.

Purchase Price Allocation

Mercer Capital provides independent valuation opinions on the fair value of intellectual property and other intangible assets acquired in business combinations.

Equity-Based Compensation Valuation

Mercer Capital provides independent valuation of stock options, restricted stock units, stock appreciation rights and other equity-based compensation awarded to employees.

280G Golden Parachute Valuation

Mercer Capital provides independent valuation opinions to assist public companies with IRC Section 280G compliance.

Lucas Parris, CFA, ASA-BV/IA

Senior Vice President

J. David Smith, ASA, CFA

Senior Vice President

Sujan Rajbhandary, CFA, ABV

Senior Vice President

Zachary M. Barber, CPA/ABV

Vice President

Jeff Capwell, CPA

Senior Financial Analyst

Koby Allen

Financial Analyst

QUARTERLY UPDATE

Financial Reporting Flash

Mercer Capital’s Financial Reporting Flash provides quarterly commentary and insight on current developments in valuation for financial reporting.

View Updates

Research and Resources

ARTICLE
The Noncompete Agreement Is Dead, Long Live the Noncompete Agreement
The FTC has updated its rulings concerning the enforceability of noncompete agreements while also making significant allowances for agreements arising from transactions. The elimination of noncompete agreements will shift some value from identifiable, amortizable assets to goodwill and may influence the attrition rates used to calculate the value of customer-related assets. The new ruling is expected to be met with substantial litigation before it becomes effective.
ARTICLE
Pay Versus Performance: What’s New in Year 2?
The SEC’s Pay Versus Performance disclosure rules introduced significant new valuation requirements related to equity-based compensation paid to company executives. As the 2024 proxy season gets underway, what lessons have been learned and what guidance has the SEC provided to registrants? We discuss some of the SEC’s recent Compliance & Disclosure Interpretations and share some best practices as companies gear up for Year 2 of the new Pay Versus Performance framework.
ARTICLE
Goodwill Impairments Are on the Rise. Surprised?
Preliminary results for 2023 show that the number of goodwill impairments is increasing for both large and middle-market public companies. Based on data through November, the number of impairments recorded by firms on the S&P 500 and Russell 2000 indices had already eclipsed 2021 and 2022 full-year figures. Interestingly, these trends materialized even as the indices themselves posted favorable total returns for the year of 25% and 14%, respectively. Public and private companies currently in the process of performing their annual/interim impairment tests should be on the alert if their peer group turns out to be the one recording impairment charges.
ARTICLE
Stock-Based Compensation in Volatile Markets
Employee, Management, and Investor Perspectives
In this article, we discuss how market volatility can affect employee, management, and investor perspectives on SBC.
ARTICLE
Letters From the SEC Business Combinations Edition
The SEC’s comment letters on public company filings give insight into what factors should be considered when discussing business combinations. In this article we discuss and comment upon four examples covering customer relationships, tradenames, contingent consideration, and bargain purchases.
ARTICLE
Impending Guidance on Business Combinations
Working Draft of The AICPA Accounting and Valuation Guide: Business Combinations
In this article, we outline topics in the Guide which contain new or evolving guidance. We also drill down on the guidance provided in Chapter 11: Selecting Valuation Approaches and Techniques for Acquired Intangible Assets.