Our client company is an award winning global professional services firm providing tailored consulting, advisory and assurance services to clients within the financial services industry. They have built a multidisciplinary team of industry recognized experts, drawn from regulators, financial institutions, asset management firms and leading professional services firms around the world. They have gained an excellent reputation for the quality of service delivery and they currently advise over 1,300 clients across their eight global offices in London, Dublin, New York, the Cayman Islands, Switzerland, Hong Kong, Luxembourg and the Channel Islands.
The Challenge / Business situation:
The purpose of our engagement was to render multiple opinions across several international fund holding ownership interests in technology businesses and intangible business assets.
ValuLink Approach and Solution:
With respect to the valuation of each target company’s common stock, we relied on two approaches: income and market. The multi-period DCF forecast analysis required analysis of the economy and the target company’s industry, market segment, historical financials, analysis of management’s inputs to the forecasted financial statement, and professional judgment in making adjustments to management’s inputs to the forecast. The comparable transactions method required selecting company transactions similar to the target company’s business. Once the comparable transactions were selected, we further compared each comparable transaction to the target company based on revenues, gross profit margin, operating expenses, operating profit margin, and net income margin in order to ensure the optimal comparable transaction and price multiple was selected. The standard of value was fair value per the Financial Accounting Standards Board (FASB) including consideration of the facts and circumstances surrounding the predetermined common stock. Our financial valuation approaches, methods and procedures associated with the common stock valuation was conducted in accordance with generally accepted valuation standards, including the Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice (USPAP).
Based on our calculations of value, we arrived at the conclusion of the fair value of the three target company’s common stock per share. ValuLink’s timely deliverables helped our client to meet their objectives.
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