Our client company was one of the largest U.S. suppliers and distributors of batteries and power-related products and a provider of supply chain solutions. They offer battery power solutions that meet consumer needs for accessibility, portability, security and mobility; coupled with value added offerings such as battery pack assembly and battery replacement/recycling programs.
The Challenge / Business situation:
The purpose of our engagement was to conduct a Financial Valuation of the Intangible Assets associated with our client company’s Asset Purchase for the sole purpose of financial and tax reporting related to their contractual commitments and annual audit.
ValuLink Approach and Solution:
The standard of value was per Financial Accounting Standards Board (FASB) including consideration of the facts and circumstances surrounding the predetermined Intangible Assets. We analyzed the impact of economic conditions on our client company and their business assets, supported by battery manufacturing industry analysis. With respect to the valuation of our client company’s Intangible Assets, we relied on two approaches: cost and income. Depending on the nature, circumstance, and characteristics of the individual intangible assets we may have applied only one approach or a combination of approaches to determine the fair value. As part of our valuation analysis of our client company’s identifiable Intangible Assets, we interviewed executive management and key professionals related to the creation, maintenance, and/or management of intangible assets within business operations. We also reviewed all available intangible asset evidential documentation and financial and non-financial company information.
Based on our opinion and financial valuation, we arrived at the conclusion of the fair value and economic lives of our client company’s predetermined Intangible Assets. Our valuation conclusion was based on the indications of value derived by the income approach, market approach, and cost approach for all the Intangible Assets. We used specific valuation methods and concluded on the economic life for each of the intangible assets. Our client’s acquisition provided them an entry into the fast growing market segment and enhanced their product/service offerings.
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