Valuation

Transactions, development, and strategic planning 

We routinely perform valuations, prepare studies, and conduct market analyses to inform decision-makers who are preparing for a transaction, beginning an infrastructure development project, or conducting strategic planning, including:

• Indicative transaction pricing valuations from financial and strategic buyers’ perspectives
• Pre- and post-close purchase price accounting for fair value and tax planning purposes
• Related party fee reasonableness opinions
• Market studies
• Valuations for restructurings
• Impact studies to help secure zoning for industrial or renewable energy project sites, including solar
• Eminent domain valuations around utility and transportation sites and corridors
• Valuations for succession planning, long-term growth, and divestitures/acquisitions

We have deep experience working with senior executives, project developer teams, investors, and counsels to determine how to best provide a valuation and which type of analysis is most appropriate. We tailor each analysis to the situation at hand and deliver well-supported valuations to inform decision-makers, or to satisfy specific transaction or development requirements.

Expert witness testimony 

We regularly support attorneys and their clients with valuation and economic analysis, including expert witness and rebuttal testimony, for the full gamut of disputes and litigation. Our experts are regularly sought out to assist in clearly and concisely explaining complex concepts to a jury, including estimates of damages, and countering opposing experts. 

Our valuation experts have an excellent track record in matters involving:

• Shareholder disputes
• Eminent domain/impact studies
• Personal property tax appraisals
• Insurable values
• Bankruptcy and distress 

We handle both plaintiff and defense-side matters. Our team has deep experience across a wide variety of public hearing, mediation, and trial settings, including virtual, and in federal and state courts, throughout the U.S. Our reports and testimony adhere to case-specific standards.

Financial reporting

CohnReznick provides valuation services that are critical for financial reporting purposes in accordance with US GAAP and International Accounting Standards, including:

• Fair Value Measurement (ASC 820 and IFRS 13)
• Business combinations / purchase price allocations (ASC 805 and IFRS 3) and asset acquisitions 
• Goodwill and indefinite-lived asset impairment testing (ASC 350 and IAS 36)
• Long-lived asset impairment testing (ASC 360)
• Equity-based compensation (ASC 718 and IRC §409A)
• Leases (ASC 842)
• Fresh-start accounting / Reorganizations (ASC 852) 
• Portfolio valuations (ASC 946)

Valuation of complex financial instruments (CFIs)

We routinely perform valuations and create customized models for a variety of complex financial instruments (CFIs), including:

• Stock-based compensation: restricted stock units (RSU), profit sharing units (PSU), total shareholder return (TSR) units
• Earn-outs and contingent liabilities
• Incremental borrowing rate (IBR) for ASC 842 lease accounting
• Debt instruments, including convertible debt with embedded derivatives
• Warrants
• Blocker interest rate/return for tax structuring

We deliver highly customized, well-supported valuations to fulfill ASC 815, ASC 470  , corporate income tax, estate tax, and country-specific financial and tax reporting requirements.

Tax-related valuation services 

CohnReznick provides business valuation services that are critical to effective tax planning and supportable tax reporting compliance, including:

• Gift tax planning and reporting
• Estate tax planning and reporting
• Charitable contributions 
• Transactions with related parties or trusts
• Equity-based (deferred) compensation under IRC 409A
• Valuation of personal goodwill for transaction structuring 
• Corporate restructuring 
• Purchase price allocations under IRC 1060
• Valuation analysis to defend against IRS challenges

Our team has expertise in determining the most appropriate valuation method for your unique circumstances. We utilize market data, published studies, transaction databases, and quantitative models to arrive at tax-efficient conclusions that are supportable under valuation standards and tax regulations.