Multi-disciplinary Valuations – Portfolio Valuation Purposes, Financial Reporting Purposes, and Transaction Opinions

When a leading provider of audiovisual and event technology services was acquired by a well-known private equity investment firm, forming a new investment platform, the management team partnered with Stout to navigate a variety of valuation issues.

We initially provided management with annual company valuations for goodwill impairment testing, as well as for the private equity fund’s portfolio valuation requirements. Throughout the financial crisis, Stout also assisted management with the determination of the fair value of certain interest rate swaps and caps. As the economy recovered and company turned to acquisitive growth, Stout performed several purchase accounting valuations to assist with its tax and financial reporting requirements. Stout valued the intangible and personal property assets of the domestic and international target companies, in addition to contingent consideration.

When the initial private equity firm exited its investment, Stout retained its relationship and proceeded to perform the overall company purchase price allocation, in addition to new incentive equity grants for management. Several tuck-in acquisitions followed, for which Stout performed the purchase accounting valuations. Management and its investors then contemplated various capital raise opportunities, including an initial public offering and a dividend recapitalization. Ultimately, Stout was engaged to advise the board on a proposed recapitalization and to issue an independent solvency opinion pertaining to the return of capital to shareholders.

Over the course of a nearly decade-long business relationship, Stout was there to provide a broad range of valuation advisory services for our client’s most important transactions.