Whether you are a seasoned controller in large publicly-traded organization or a finance executive in an early-stage venture capital-backed firm, we understand that you are regularly faced with the complexities of fair value reporting requirements under U.S. GAAP or IFRS. The ongoing changes in the accounting standards and valuation best practices can sometimes feel overwhelming without the appropriate advisor at your side.
Helios has no conflicts of interest or independence requirements that prevent us from providing valuation and financial advisory services. Our professionals have worked in an independent consultative capacity, as well as led valuation review efforts within the large public accounting firms. Having performed thousands of independent valuations and reviews across a wide range of industries, we remain current with the constantly evolving accounting standards and valuation best practices. We leverage this well-rounded experience to provide a collaborative and smooth valuation and audit review process from planning the engagement to initiating discussions with your auditors at key analytical inflection points and appropriately considering matters of materiality. Our company’s mission is to create an efficient valuation process and reduce the burden on you so that you can focus on what matters most: running your business.
Purchase Price Allocations (ASC 805 / IFRS 3)
We have performed and reviewed thousands of purchase price allocations for transactions involving companies of all sizes and developmental stages and across a wide range of industries.
Our valuation capabilities include:
- Pre-acquisition pricing analytics, including accretion/dilution.
- Valuation of consideration transferred, including equity consideration in the acquiror, rollover equity, and non-controlling interests.
- Valuation of contingent consideration using currently accepted valuation techniques, including Monte Carlo Simulation.
- Allocation of purchase price and goodwill to reporting units/cash generating units.
- Valuation of tangible assets, including machinery and equipment, real property, inventory, and leases.
- Valuation of intangible assets, including customer lists/contracts/relationships, backlog, trade names/trademarks, developed technology, in-process research and development (IPR&D), patents, internally developed software, non-compete agreements, trade secrets, and other industry specific intangible assets.
- Valuation of liabilities, including deferred revenue, seller notes, and other liabilities.
Impairment Testing (ASC 350 / ASC 360)
Helios can assist with all aspects of the impairment testing process under ASC 350 and ASC 360, including the following:
- Support for your Step 0 qualitative assessment as part of the impairment testing process.
- Measurement of the fair value of reporting units and the allocation of shared assets.
- Determination of the fair value of debt for allocation to your reporting units in order to derive their respective equity values.
- Measurement of the fair value of indefinite-lived intangible assets, including, but not limited to, as trade name and in-process research and development.
- Reconciliation of an independently-determined fair value of individual reporting units to the market capitalization in order to assess the implied market participant acquisition premium (i.e., control premium).
- Identification of asset group(s) under ASC 360.
- Recoverability testing.
- Estimation of the fair value of applicable asset groups for those that fail the recoverability test and their underlying assets.
Fair Value Assessment/Portfolio Valuation (ASC 820)
Helios employs generally accepted valuation methodologies to support the mark-to-market requirements of alternative asset investors, such as private equity firms. Our professionals have extensive experience in determining the fair value of equity and debt securities in portfolio companies under ASC 820 and leverage significant experience acting in a review capacity within large public accounting firms. Our valuation procedures have been developed with consideration to our professional experience in executing and reviewing mark-to-market valuations with the goal of delivering a streamlined valuation and audit review process to our clients.
Fresh Start Accounting (ASC 852)
Helios has the expertise and experience to assist in the allocation of emergence value to a company’s tangible and intangible assets upon emergence from Chapter 11 bankruptcy (in conformance with ASC 852 and the guidelines set forth in ASC 805). Our professionals understand the many nuances that exist with valuation matters relating to fresh start accounting.
Stock Compensation Expense Calculations (ASC 718 / IFRS 2)
Stock compensation expense calculations are most frequently needed to comply with IRC 409A. However, companies with audited financial statements must also report this expense pursuant to ASC 718 and, in many cases, undergo a valuation review process. Helios prepares credible, well-documented valuations for ASC 718 and IFRS 2 with the audit review process in mind to ensure a smooth overall engagement lifecycle.
Incremental Borrowing Rate Calculations (ASC 842 / IFRS 16)
Helios professionals have provided valuation services to public companies relating to the determination of the incremental borrowing rate since the initial implementation date of this accounting standard in 2019 (for fiscal years ending after December 15, 2018). Helios has the expertise and resources to assist with estimating the incremental borrowing rate for each of your leases or portfolios of leases across international jurisdictions.