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Business Valuation
 he
valuation of a business or asset may be required in connection with
estate and income tax matters, mergers and acquisitions, commercial
damages litigation, or other matters.
ECS staff members
are experts in performing business valuations and in estimating commercial
or personal damages. In addition to employing standard accounting and
business valuation skills, ECS uses its expertise in technical finance,
statistics, and economics to conduct valuations that meet its clients’
unique needs and satisfy the highest standards of professional appraisal
practice. ECS personnel have published articles on valuation procedures
and made presentations on valuation practices to the IRS and professional
groups.
Working on behalf
of companies and estates, ECS has performed valuation services
ranging from major projects for Fortune 50 firms to smaller engagements
for family-owned businesses.
- In an estate
tax matter, ECS valued a large, privately held firm owning numerous
foreign entities in the food processing, wholesale, and retail industries.
The valuation addressed significant issues regarding marketability
and "key-man" adjustments.
- In an estate
tax matter, ECS valued the limited convertible preferred stock held
in a major foreign pharmaceutical corporation. The convertibility
option was valued using the Black-Scholes pricing model.
- In a dispute
between the U.S. and foreign parties to a joint venture in the petrochemical
industry, ECS prepared an analysis addressing the economic aspects
of liability and damages. The assignment required a detailed analysis
of complex international pricing data and a complex capital budgeting
cash flow model to determine the venture’s expected level of
profitability.
- In a tax matter
concerning a large apparel company, ECS valued the intangible assets
employed in producing and marketing the firm’s products.
- In a tax matter
related to a corporate acquisition, ECS prepared a valuation of the
merchandise inventory of a large retail firm.
- In connection
with a cable television company, ECS used a discounted cash flow approach
to determine the value of subordinated partners’ shares.
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