We have performed more than 250 merger related valuations under the “new” purchase accounting rules issued in 2009.
Why Choose Us
We are nationally recognized experts in mergers and acquisitions and have led seminars on the subject for the AICPA, the NCUA, and many of the nation’s largest accounting firms. Thousands of people have relied on the guidance we provide in our white papers on merger accounting.
Our fair value determinations are based on discounted cash flows. We begin with the contractual cash flows and adjust them prospectively using robust prepayment, default and loss severity assumptions. We value billions of dollars of loans annually and have spent years developing and back testing our prepayment and credit loss inputs.
Our approach differs from our competitors in four ways:
First, we offer independent, fee-based advice. Our fees are not dependent on whether a merger or acquisition takes place. We believe this is the only way to avoid a potential conflict-of-interest.
Second, we combine a detailed understanding of how to value the equity in an enterprise with the knowledge and skills to value the balance sheet at the financial instrument level. For example, we value investments at the CUSIP level and can value complex investments such as private-label MBS using our Intex software.
Third, our reports thoroughly document our processes and input assumptions. Our clients tell us that this attention to detail greatly facilitates their discussions with their regulators and their external auditors.
Fourth, in addition to performing the valuation, we have a thorough and complete understanding of how the valuation affects our clients’ accounting and regulatory reporting. We believe this is critical because the accounting issues are relatively complex and can have major effects on net income and regulatory capital.
Merger & Acquisition Services
We offer two levels of valuation – a preliminary and a final valuation of the institution to be merged in.
We provide true-ups for the purchase accounting adjustments arising from mergers and acquisitions.
We offer both qualitative and quantitative tests of goodwill impairment.
We provide a comprehensive and cost-effective solution to the complexities arising from accounting for loans under FAS ASC 310-30.