FAIR VALUE APPRAISALS - ASC 805

In our mergers and acquisitions services group, we handle a high volume of PPA’s every year. Purchase Price Allocations are critical to the success of any deal or venture. Leaving PPA’s as a post-transaction after thought can result in challenging issues to resolve. Engaging a due diligence team that includes financial, taxation and valuation professionals pre-closing, can help to resolve issues that may effect the PPA.  KEA can serve as a valuable partner at any point in the transaction process, serving as a one-stop shop for due diligence and full service PPA’s, reducing the frustration of information request redundancies that comes with engaging multiple firms.  Our team of ASA’s maintains a specialty in energy and utility industry valuations, expertise that is difficult to find.  We are the leading producer of FAS 141 purchase price allocations.  Over the past three years alone, KE Andrews’ ASA designated appraisers have appraised over $22 billion in assets, and have handled over $34 billion in IRC 1060 Allocations.

Mergers and Acquisitions Services
mergers and acquisitions services
Our firm not only has command of the FAS guidelines, but more important, understands the dynamics that have historically impacted values and will impact values in the future within the energy sector.
KEA Leadership

INDUSTRY SPECIALTIES

Oil & Gas Exploration & Production

Midstream Companies

FERC Regulated OG&L Pipeline

Mining

Gathering & Transmission

Treating, Processing & Refining

Electric Utility

Storage

Fractionation and Distribution

KE Andrews Mergers and Acquisitions Services

GOODWILL IMPAIRMENT TESTING

KEA performs annual goodwill and intangible asset impairment testing in accordance with ASC 350 standards through two methods:  Qualitative assessment testing, and the two-step process of Quantitative testing: Step 1- We test that fair value of the reporting unit equals or exceeds the carrying value & Step 2- We determine the fair value of goodwill, often based upon a multiple period excess earnings method (MPEEM).  We employ state of the art valuation techniques for valuing reporting units net of intra-company synergies, and our valuation approaches are primarily the market and income approaches which examine and incorporate current market participant expectations.  Impairment testing is performed for Goodwill as well as identifiable intangibles which may have either indefinite or determinable remaining lives.  Our ASA group has performed over $14 billion in impairment study valuations over the last three years as part of our mergers and acquisitions services.

MERGERS AND ACQUISITIONS SERVICES

During mergers and acquisitions, the quality of the due diligence conducted is extremely important.  Discovering the state and local tax implications of a purchase or merger can significantly change the course of the strategy that is being executed to the benefit of the buyer.  It is important that any company undertaking a new venture, retains a group that has a consistent track record of excellence in this area, supplying the best information available while tracking down information that is also not so easily accessed.  Business valuations also play a key role in the M&A process.  KE Andrews is positioned to be your partner in these ventures that require a unique set of expertise and skill sets.  Our team of ASA’s stands ready to partner with you to ensure that you see the entire picture when engaging in new ventures. Contact us below to learn more about our mergers and acquisitions services.

  • Inventory Issues
  • Goodwill Impairment
  • Estimated Useful Life
  • Customer Contracts
  • Definite Lived Assets
  • Seller Notes
  • Valuation & Purchase Price Allocation
  • Allocation Studies
  • GAAP Treatment of Payments

VALUATION - TAX - SOLUTIONS

  • Independent Appraisals
  • Purchase Price Allocations
  • Due Diligence Reviews
  • Goodwill Impairment Testing
  • IRC 1060 Allocations