Case Study
Fixed Asset Valuation in Relation to an Acquisition
- Adam Tauzel
Healthcare
INDUSTRY
350
EMPLOYEES
$150M
ANNUAL REVENUE
Background
A valuation was required on the 2,000+ fixed assets of the acquired company over 9 different asset classes. The unique nature of the company’s business and customized equipment required in-depth discussions with experts to appropriately attribute values. The valuation was used to determine the fair market value of the company’s assets. This is critical for both accounting purposes and the acquisition purchase price.
Objective
- Consolidate and rationalize 3 different subsidiary fixed asset listing
- Review and correct depreciation assigned to each asset and remove fully depreciated + written off assets
- Identify and appropriately label individual components used to create units
- Identify and craft valuation processes for each asset class
- Prepare supporting documentation and a cohesive report able to stand up to financial audit + tax review
Solution
- Partnered with internal and external team members to create a complete + accurate fixed asset listing the company did not have
- Leveraged multiple valuation methodologies for both common and specialized assets with no active market
- Prepared reports and supporting documentation the cogently described the processes, valuation methodologies and findings
- Prepared journal entries to accurately reflect the fixed assets and worked with the client’s auditor to ensure comfort
Prepared a valuation on over 2,000 assets in a highly specialized equipment industry.
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