Valuation for Financial Reporting : Fair Value Measurements and ...
Valuation for Financial Reporting : Fair Value Measurements and ...
Valuation for Financial Reporting : Fair Value Measurements and ...
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Sample Intangible Asset <strong>Valuation</strong> Report Language <strong>and</strong> Example 1 177E. Allocated Returns-IPR&D 2007 2008 2009 2010 2011 2012Net Working Capital $70 $88 $84 $77 $55 $32L<strong>and</strong> <strong>and</strong> Building 160 242 202 166 108 58Machinery <strong>and</strong> Equipment, net 149 184 116 73 37 16Software 126 192 161 132 86 46Trade Name 211 321 269 221 144 78Noncompete Agreement 45 69 58 0 0 0Assembled Work<strong>for</strong>ce 30 45 38 31 20 11Customer Base 126 191 160 132 86 46Total $917 $1,332 $1,088 $832 $536 $287Footnotes:(1) Used <strong>for</strong> Customer Base (Exhibit 4.14), except no return is taken on Customer Base asset.(2) Based on <strong>Valuation</strong> of Technology (Exhibit 4.12)(3) Based on Business Enterprise Analysis (BEA) - Cash Flow Forecast (Exhibit 4.4)(4) Based on <strong>Valuation</strong> of In-Process Research <strong>and</strong> Development (Exhibit 4.13)Note: Some amounts may not foot due to rounding.# Copyright 2007 by FVG Holdings, LC <strong>and</strong> <strong>Financial</strong> <strong>Valuation</strong> Solutions, LLC. All rights reserved. Usedwith permission.APPENDICESStatement of Assumptions <strong>and</strong> Limiting Conditions. The primary assumptions <strong>and</strong> limitingconditions pertaining to the value estimate conclusion(s) stated in this report are summarizedbelow. Other assumptions are cited elsewhere in this report.The valuation may not be used in conjunction with any other appraisal or study. The valueconclusion(s) stated in this appraisal are based on the program of utilization described inthe report <strong>and</strong> may not be separated into parts. The appraisal was prepared solely <strong>for</strong> thepurpose, function, <strong>and</strong> party so identified in the report. The appraisal report may not bereproduced, in whole or in part, <strong>and</strong> the findings of the report may not be utilized by athird party <strong>for</strong> any purpose, without the express written consent of FVA&M, LLC.No change of any item in any of the appraisal report shall be made by anyone other thanFVA&M, LLC, <strong>and</strong> we shall have no responsibility <strong>for</strong> any such unauthorized change.Unless otherwise stated in the appraisal, the valuation of the business has not consideredor incorporated the potential economic gain or loss resulting from contingent assets, liabilities,or events existing as of the valuation date.The working papers <strong>for</strong> this engagement are being retained in our files <strong>and</strong> are available<strong>for</strong> your reference. We would be available to support our valuation conclusion(s) shouldthis be required. Those services would be per<strong>for</strong>med <strong>for</strong> an additional fee.Neither all nor any part of the contents of the report shall be disseminated or referred tothe public through advertising, public relations, news or sales media, or any other publicmeans of communication, or referenced in any publication, including any private or publicofferings, including but not limited to those filed with the Securities <strong>and</strong> Exchange Commissionor other governmental agency, without the prior written consent <strong>and</strong> approval ofFVA&M, LLC.Management is assumed to be competent, <strong>and</strong> the ownership to be in responsible h<strong>and</strong>s,unless noted otherwise in this report. The quality of business management can have adirect effect on the viability <strong>and</strong> value of the business. The financial projections contained(continued )
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