Tax and accounting due diligence

Before making an investment, we advise on pricing by benchmarking to comparable transactions. Our services include:

• Validating the valuation methodologies and assumptions used by the appraiser and cost segregation provider
• Advising on the tax and financial accounting implications of the investment
• Assisting through negotiations with counterparties including sponsors, syndicators, and/or deal attorneys

Technical accounting memorandums and audit support

We write white-label accounting memorandums covering a wide range of financial accounting aspects of the investment, including consolidation assessment, accounting for the equity method investment, accounting for the investment tax credit and deferred tax items, and identifying and accounting for embedded features such as call options.

Financial accounting modeling

Using a best-in-class financial model that can be customized for the investment, CohnReznick:

• Provides dashboard reporting to assess the performance of the investment against forecasts
• Models the various financial accounting and tax aspects of the transaction
• Provides projections of financial accounting results to help investors understand the financial accounting and tax impacts through the full life of the investment
• Delivers audit-ready/audit-friendly inputs, calculations, and rollforwards that are traced and agreed to supporting documents

Training

We provide a custom-designed curriculum – either in-person or virtually – addressing the economic, tax, and financial accounting impacts of an investment.

 

How can we help accelerate your ESG strategy?

Request a 15 minute consultation.