Areas of Practice
Comprehensive business valuation analysis for: taxation, financial reporting, business planning, and corporate reorganization & estate planning purposes
Financial and capital asset decision making
Fair valuation of intangible assets including, purchase price allocation and impairment analysis
Employee stock option valuation
Company fairness opinion analysis, review and reporting
Business pricing, transaction and discount rate analysis
Industry experience includes the following: Software and technology; general construction, subcontracting & construction management; machine and sheet metal manufacturing; freight & transportation; gaming & wagering, entertainment & media; building & construction supply ; human resources & business services; engineering; distribution; cable, TV & broadcast; medical device & health care; venture capital and private equity
IP and Intangible Assets
Valuation of intangible assets acquired following a transaction is a necessary step in the financial reporting process. Pre-acquisition valuation of intangible assets provides information to show whether an acquisition will be accretive.
A fairness opinion is an objective, independent analysis and report stating whether the consideration offered in a transaction, either by insiders or third parties, is fair to the non-affiliated shareholders of the company from a financial perspective. Typical transactions triggering fairness opinions are tender offers, large block stock purchases, mergers, divestitures, reorganizations and hostile takeovers.
Ott & Assoc. provides support for your dispute, mediation or litigation, whether it arises from shareholder dispute, marital dissolution, or business damages.
Tax strategies are becoming increasingly complex and more highly scrutinized by regulatory authorities such as the Canada Revenue Agency (CRA). Ott & Assoc. provides companies with independent valuation analysis to support corporate tax strategies.
Stock Option Plans
Valuing various forms of share-based compensation including stock options, employee share purchase plans, restricted shares, and stock appreciation rights.
Complex Securities Valuation
Complex securities are typically rich in economic features and closely linked to an equity, debt or hybrid instrument. Many include features that alter cash flows over the life of the security, such as options, return multiples or thresholds, and/or specific IRR and price-performance targets. In corporate settings, securities with these characteristics are often created as part of incentive compensation, corporate transactions, capital raises or external financing activities.
Purchase Price Allocation
Under IFRS 3 - Business Combinations, purchase price allocations account for business combinations by recognizing the costs of acquisitions and liabilities as tangible assets and separately recognizing (and later amortizing) intangible assets based on their fair values. We assist with identifying recognizable intangible assets and amortization, and assign intangible assets and residual purchase price to reporting units.
Corporate reorganizations can take the form of transfers of assets for stock or stock for stock. Both the tax bases and fair market value of stock and assets transferred are required for proper reporting of these transactions. Our valuations analyses can support both the tax treatment and proper tracing of tax attributes of the parties to the reorganization.
Annually, companies are required to conduct an impairment test of goodwill and evaluate remaining useful lives of intangibles. Amortized intangibles are tested against undiscounted cash flows. Indefinite-lived intangibles are tested against fair value.