FVC2252. Valuations Preceding or After M&A Transactions

Valuation professionals are faced with evaluating fair market value either preceding or after M&A transactions or capital raises. This session delves into the complexities as to how these events influence value under a fair market value standard for tax purposes. We will explore differences in fair market value and value indications from M&A or capital raise transactions, and analyze how M&A processes, letters of intent, and transactions occurring before or after the valuation date can impact fair market value valuations.

Learning Objectives:

• Identify differences between valuations for tax purposes under a fair market value standard vs. value indications from M&A or capital raise transactions
• Determine how M&A processes, letters of intent, and transactions occurring before or after the valuation date can impact fair market value valuations
• Differentiate the known or knowable concept to valuations
• Evaluate implications of sales proceeds, rollover equity, and earnouts from a transaction in valuations of equity interests in sellers after close
• Analyze walk-through case studies that examine the impact on cash flow normalization, pricing, valuation discounts, non-operating assets, and deferred tax liabilities on unrealized gains