Stout was engaged to provide valuation and financial reporting services for an apparel company that designs, markets, and sells premium fashion jeans, sportswear apparel, and fashion accessories.

The company had a complex financial history, including bankruptcies and a recovery that positioned it for acquisition. These events required multiple financial reporting exercises, including fresh start accounting, goodwill impairment testing, purchase price allocations, and the valuation of incentive units.

Our Work

Goodwill Impairment Testing

We performed annual goodwill impairment testing for the company in compliance with public company Generally Accepted Accounting Principles. This involved determining the fair value of the company’s brand and other intangible assets to ensure compliance with financial reporting requirements.

Fresh Start Accounting

Following the company’s bankruptcies, we conducted fresh start accounting valuations, which included valuing the company’s brand name and other intangible assets to establish a fair value baseline for future financial reporting.

Purchase Price Allocation (PPA)

Upon the company’s acquisition by an investment group, we conducted a PPA analysis to allocate the purchase price across tangible and intangible assets. This included valuing customer relationships, the brand name, and goodwill.

Management Incentive Unit Valuation

We valued the incentive units granted to the management team post-acquisition, which were needed for ensuring compliance with financial reporting standards.