As the year wraps up, this edition of Value Driver Digest focuses on key reporting items that many of our clients are tasked with completing at the end of the year – considerations around impairment testing, implementation of the latest compensation disclosure requirements from the SEC, and for private companies, the last chance to adopt ASC 842 before it goes into effect.
Value Driver Digest Pulse Survey
Industry Update: Technology
Stout is pleased to present our latest Technology Industry Update report for Q3 2022. We hope that you find this report helpful and that it serves as a valuable resource to you in staying up to date on the market.
We look forward to staying in touch and encourage you to contact us directly if you would like to discuss our perspectives on current market trends or potential M&A opportunities, or to discuss our relevant advisory experience.
This report focuses on software & services trading and financial trends for the following sectors:
- Application Software
- Data Processing and Services
- Internet and Infrastructure
- IT Consulting
- Systems Software Sectors
Corporate News
Stout is pleased to announced that we have added offices in Charlotte and San Diego. Stout now has 25 offices globally.
The following Stout intellectual property experts have been recognized by Intellectual Asset Management in its 2022 Patent 1000 and Strategy 300 Global Leaders rankings: John Bone, Lindsey Fisher, David Haas, Steve Holzen, Michele Riley, Dana Trexler, and Scott Weingust.
Stout congratulates brand ambassador Lizette Salas and her teammate Jennifer Kupcho on winning the Dow Great Lakes Bay Invitational!
Stout has announced the acquisitions of:
- Davis & Hosfield Consulting, LLC, a litigation-focused financial and economic consulting firm
- The Claro Group, one of the top privately owned financial, economic, and management consulting firms in the nation
- Vantage Point Advisors, Inc., a provider of business valuation services for tax reporting & compliance, financial reporting, transaction advisory, fairness & solvency opinions, litigation support, and other business advisory services
Stout is pleased to announce our new cost segregation services, expanding the firm’s current Real Estate practice within the Valuation Advisory group. The addition of these services positions Stout to assist clients through the entire real estate lifecycle – beginning with transaction structuring to the capitalization, depreciation, and disposition of capital assets. Stout’s cost segregation services will help clients improve cash flow and achieve tax deferral benefits related to their real estate by quantifying costs eligible for shorter depreciation recovery periods. In conjunction with this announcement, Stout welcomes Managing Director Lee Welborn to lead the practice.
UPCOMING EVENTS AND CONFERENCES
- Webinar: Time is Running Out: Accelerating ASC 842 with AI & Accounting Advisory, November 15
- Q3 2022 Market Update: How Rapidly Rising Rates are Impacting Capital Markets, Valuation, and M&A, November 17
Featured Service: Complex Securities & Financial Instruments Practice
Stout provides analysis and valuation related to complex securities and other financial instruments for financial reporting, tax planning, and investment decision‐making purposes.
Recent SEC guidance requires public companies to disclose the relationship between executive compensation actually paid and a company’s financial performance for the last three years, beginning with fiscal years ending after December 16, 2022. As a result, Stout’s Complex Securities & Financial Instruments Practice has been actively advising clients on how to estimate fair value for equity-based awards such as:
- Stock options
- Total shareholder return awards
- Option or restricted unit grants with “market-vesting” conditions
- Restricted unit grants with time or “performance-vesting” conditions
Learn more about Stout’s Complex Securities & Financial Instruments Practice.
Select Engagements
- Assisted management of media company with tax and financial reporting requirements
- Equity valuations to administer stock incentive plan
- Equity valuations and PPA for next-gen healthcare software company
- Advised company on acquisition accounting and goodwill impairment
- Performed goodwill and intangible asset impairment testing for Tropicana
- Performed ASC 842 lease adoption for media company
Insights
In Focus
- How Pay vs. Performance Disclosure Requirements Impact Equity-Based Compensation
- Don’t Overlook These Critical Impairment Testing Considerations
- Is a Downturn in the Market a Triggering Event for Impairment Testing?
- FASB Postpones New Rules on Accounting and Disclosure of Goodwill
- Guide to Accounting Standard Codification (ASC) 842
Wide Lens
- End-to-End Insight and Expertise Along the M&A Lifecycle
- Accounting and Financial Reporting Throughout the Transaction Lifecycle
- Prevent Deal Value Erosion with a Holistic Approach to Finance Integration
- Prudence is the Best Way to Prevent an IRS Payroll Tax Audit
- State Income Tax Implications from the Federal R&E Law
- Preparing a Company to Go Public
What’s Trending
- NYC’s Building Energy Efficiency Rating: Interactive Tool
- In-House Portfolio Valuations: Is the Reward Worth the Risk?
- The Trials and Tribulations of NFT Valuation in the Marketplace
- Welcomed Changes in FASB’s Approach to Crypto Assets
- How to Prepare for Potential Climate Change Disclosure Requirements