Navigate Complex Transactions with Trusted Expertise
The diversity of our strategic and operational expertise makes us the right partner to any company looking to evaluate and participate in a business acquisition, combination or divestiture. Our primary objective is to increase your overall value and achieve your desired results. Your success is our greatest goal.
We serve companies in all industries requiring acquisition and divestiture advisory support with a full suite of services from both an accounting and advisory perspective. Services include support for the most complex valuations associated with these transactions such as contingent consideration or earnouts.
We can assist with both the buying and selling side of business transactions, providing strategic analysis and selection, deal execution and integration or divestiture support.
We’ll perform your initial assessment of readiness, ensuring alignment between transaction teams and reducing transaction risk. We then focus on accelerating your operational readiness across the organization while allowing ample time to properly prepare for legal steps. We perform all these services while ensuring business continuity and value preservation.
Many legal disputes involve financial matters related to complex business transactions. Even if you have hired an attorney to represent you, you will still need litigation support regarding financial matters.
How is a company’s business value generally determined? How is The Vine Advisors approach different?
There are three major approaches to business valuation: income, market, or cost. We employ a combination of all methods to arrive at the most accurate conclusion of fair value to your organization.
Contingent consideration, also referred to as an earnout, is commonly used in mergers and acquisitions valuation practices to:
- Bridge a valuation gap
- Provide continuing incentive to business sellers
- Account for the achievement of technical or other milestones
Acquirers must measure fair value on the acquisition date and again at each quarter so long as the contingent consideration exists as an asset or liability.
As a result, whatever effect the target company’s performance has on earnings can be tempered by an opposite (but not necessarily equal) impact on earnings.
What is your process for helping to assess and monitor the value of a contingent consideration or earnout?
We will help you:
- Identify the earnout that is part of a business combination or equity compensation
- Calculate the acquisition-date earnout valuation using appropriate modeling techniques, such as scenario-based models or Monte Carlo Simulations
- Measure the likelihood of attaining the earnout payoffs
- Re-measure assets and liabilities for each reporting date until the contingency is resolved
- Model the effects on future earnings under a variety of scenarios
- Prepare valuation reports and engage with your external auditors to provide audit support
- Gain greater visibility into the financial implications of earnouts while establishing a robust one-time or recurring valuation process
Oil & Gas
Power & Utilities
Book a free 60-minute consultation with one of our experts to learn how we craft custom solutions for any business, at any stage of growth. It would be our honor to serve you.
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