Valuation Services and COVID-19
The COVID-19 pandemic and the resulting slow down or temporary cessation of many businesses has triggered a massive sell-off in equities, as investors have cut projections and raised equity risk profiles for publicly traded investments in this time of uncertainty. The sudden decline in equity values provides both challenges and opportunities for business owners and their advisors to consider, including:
- Valuations of Distressed Credit Facilities – consulting with financial institutions, lenders and other investment funds regarding the valuation and viability of the debtor.
- Acquisitions and Divestitures – helping management evaluate opportunities for vertical or horizontal integration, or the sale of a distressed business unit.
- Shareholder Transactions – consulting with owners as they consider the effects of market fluctuations on plans to complete shareholder buyouts and/or settle shareholder disputes.
- Goodwill Impairment – testing for interim goodwill impairment resulting from triggering events.
- Estate and Gift Planning – support the strategic planning of owners regarding the appropriate time to make transfers of assets to maximize the use of gifting limits while values are depressed, and providing expert estate valuation reports appropriate for filing with the IRS.
- Buy-Sell Agreements – providing guidance to owners as they consider and quantify their existing pre- and post-acquisition valuation provisions, including those based on formulaic approaches or valuation multiples that may no longer be applicable.
- Incentive Compensation – consulting with business owners regarding the value of equity instruments made available to key employees or executives during depressed market conditions, and preparing related valuations in a manner suitable for both financial reporting and income tax compliance purposes.
Gleason Experts stands ready to help you deal with problems and opportunities that have already arisen, and to help you prepare for those that are on the horizon. Please reach out to one our team members for more information.