When we founded the company, we focused on IRC 409A and ASC 718 valuations for stock compensation expense purposes. As our client base expanded and our interactions with them grew, we saw needs for many other types of tax and financial reporting valuations including a variety of business enterprise valuations, valuations for ASC 350 (goodwill impairment) and ASC 805 (purchase price allocations), valuations of complex financial instruments, IP and patent valuations, and others. Behind all of these valuations is a deep understanding of business, finance and the technical issues related to fair value and fair market value in accordance with AICPA and IRS regulations. With our team’s background in these issues, along with venture capital, tax accounting, and M&A, we may tackle any project that draws on our decades of experience and interactions with hundreds of clients.
A 409A valuation can be used to establish the exercise price of options to be issued to employees and provides safe harbor to your company and employees from potential adverse tax consequences and unwanted headaches leading up to a financing, acquisition, or IPO. IRC 409A applies to companies issuing traditional or non-traditional deferred compensation to employees, which includes stock options, restricted stock units, bonus plans, salary deferral arrangements, or other agreements. If you issue options or any other form of deferred compensation to employees, you will need an appraisal of the fair market value of your business from an independent and qualified valuation professional.
We perform equity and enterprise valuations for a variety of different purposes, including transaction-related negotiations, business planning, estate planning, entity conversions, ASC 350 impairment testing, IRC 382 NOL carryforward calculations, and more.
Intellectual Property (“IP”) asset valuations may vary widely by company and industry based on many different factors. These valuations depend on industry experience and may require novel applications of traditional approaches. Redwood Valuation Partners will support you by providing in-depth valuation analyses that include robust quantitative and qualitative considerations. Our team has had significant exposure to IP in numerous industries, and we have valued intellectual properties ranging from trademarks to patents to trade secrets and more. Clients use our IP valuations for a variety of purposes including tax compliance, business planning, mergers and acquisitions, litigation support, and others.
We perform valuations to help companies comply with the requirements of ASC 805 (previously SFAS No. 141R), which includes determining the fair value of the transaction consideration, intangible assets, liabilities, and certain tangible assets as of the date of acquisition. An independent valuation of the business interest (or assets) acquired is needed to allocate the value of the purchase consideration to the identifiable tangible and intangible assets acquired. The residual value is attributable to goodwill, which subsequently may need to be tested for impairment. We also perform purchase price allocations in accordance with IFRS 3.