As the world begins to adapt to the new normal, the S&P 500 is within 10% of its all-time high set on February 19, 2020. It remains to be seen whether or not that momentum will be sustainable given unemployment levels not seen since the 1930s and upcoming Q2 earnings announcements. In this time of continued uncertainty, this edition of Stout's Value Driver Digest focuses on restructuring, impairment testing, and other timely tax and financial reporting news.
Insights
In Focus
- Is COVID-19 a Triggering Event for Impairment Testing?
- The CFO Role in a Successful Turnaround
- Debt Restructuring Poses Various Income Tax Challenges and Valuation Considerations
- "Fire Sales" and Financial Reporting
- Tax Reporting: 10 Issues to Consider When Valuing a Legal Entity
Wide Lens
- Reasonably Equivalent Value: What Distressed Buyers Should Know
- COVID-19: How to Prepare for a Business Interruption Claim
- The State of Leveraged Buyouts and the Benefits of a Solvency Opinion
- How to Talk to Your Lender in Difficult Time
- COVID-19 and Accounting for Loan Modifications
- Valuation: The Cornerstone of the Bankruptcy Process
What's Trending
- Tiger King: An Exotic Tale of Intellectual Property Disputes
- Breaking the Glass: How Stout's Female Leaders Have Excelled
- Community Banks and the Opportunity to Benefit From Resource Sharing
Featured Service: Financial Due Diligence
Stout is pleased to announce the expansion of its Transaction Advisory group to include Financial Due Diligence and Tax Services. Stout's new Financial Due Diligence service is focused on mergers, acquisitions, business combinations, investments, and financing arrangements, on both the buy side and sell side. Financial due diligence services include:
- Buy-side financial due diligence
- Sell-side financial due diligence
- Other transaction advisory services
Additionally, Tax Services will bring deep expertise to guide clients through the impact of the complexities in tax laws and regulations that affect transactions. Our tax services include:
- Tax structuring for acquisitions, joint ventures, mergers, buy-outs, spin-offs, divestitures, and dispositions
- Tax modeling and comparative benefit analysis for both buyer and seller
- Tax diligence investigation for both buy side and sell side
- Tax impact and modeling for debt restructuring and bankruptcy
Through the expanded Transaction Advisory practices, Stout’s professionals are available to provide financial, accounting, and tax expertise across a wide variety of industries. Stout advises on both domestic and cross-border transactions, leveraging the strength of our global organization. We provide insights to help identify valuable information, including key drivers and risks associated with a business that could impact the deal structure and value.
Select Engagements
- Purchase price allocation and valuation of branded apparel company
- Assisted in valuation as company emerged from bankruptcy
- Hospital chain owner retains 100% of ownership after bankruptcy
- Bankruptcy valuation dispute for major automotive OEM
Corporate News
- Stout is pleased to announce the Stout-Ryder Cup. Launched in March, this new charitable program benefits Food Rescue US and is associated with Stout’s sponsorship of professional golfer and Stout brand ambassador Sam Ryder. With the goal of raising money for charity, the Stout-Ryder Cup is a monthly fitness competition in which Stout employees go head-to-head with Ryder. Ultimately, competition efforts are converted to a charitable donation to Food Rescue US.
- Stout has become a sponsor and member of the International Valuation Standards Council (IVSC). The IVSC is a global non-profit organization responsible for setting International Valuation Standards (IVS) and developing the valuation profession worldwide.
- Stout released its latest research into federal trade secret matters in the Trends in Trade Secret Litigation Report 2020. In 2017, following the enactment of the Defense Technology Security Administration, Stout published an independent analysis of federal trade secret cases decided over the 27-year period from 1990 through the summer of 2017. The Trends in Trade Secret Litigation Report 2020 is a continuation of the original report, including analysis on federal trade secret cases decided through the summer of 2019.
- Recently, Stout hosted a virtual golf clinic with our brand ambassador and professional golfer, Sam Ryder. Over the course of an hour, Sam answered many questions posed by the audience and delivered helpful and entertaining insight from the perspective of a PGA Tour Professional.
NEW HIRE ANNOUNCEMENTS
- Mark Hayden is a Managing Director in the Valuation Advisory group. He has more than 30 years of experience specializing in corporate financial advisory services, expert witness testimony, and post-transaction dispute resolution.
- James Devinney joins us as a Managing Director in the Real Estate practice of the Valuation Advisory group. He has over 15 years of experience providing valuation services to both public and private sector clients including valuation analyses related to financial and tax reporting, insurance, bankruptcy, acquisitions and divestitures.
What Our Clients are Saying
For almost 30 years, we have put our clients first by understanding their needs, adding value, and setting and managing client expectations – all while being responsive and communicative every step of the way. As a result, our net promoter score (a measure of our clients' willingness to recommend our services) is consistently in the 90s, and 69% of our engagements involve repeat clients.
Learn more about our approach to client service, watch our video to learn more about what Relentless Excellence® means, and see what our clients have to say below.
"Your engagement team is amazing and has been patient through the process with multiple stakeholder questions." - Chief Financial Officer
"Great help ... timely deliverables, helped on tax questions when needed [with our auditor], did a quick revision of report when needed after completion of core valuation." - Operating Advisor at private equity firm
"The team we work with at Stout is great. Very responsive and helpful. We often have short turn around needs and they are always able to meet our timelines. A great group of guys to work with." - Corporate Controller
"[Your employee] and his team are fantastic- always answer questions promptly, very knowledgeable and experienced. They are able to translate very complicated valuation principles into high level management positions for our partners/shareholders. Highly recommend." - Director of Finance