Valuation by Business Need

Our professionals are recognized in intellectual property and intangible asset valuation, having performed numerous critical IP appraisals to Fortune 500 companies, mid-sized businesses, and sole inventors, across a variety of industry segments.

Acquisition/Sale Targeting & Pricing
The true market value of intellectual property, and all other identifiable intangible assets, is a key consideration in establishing an arms-length transaction price that both buyer and seller can agree to. This becomes especially important when current balance sheets may grossly understate the value of owned IP. Parties to a transaction continuously reach out to Ocean Tomo for our unbiased and thoroughly supported opinions of the market value of intangible assets, and their contribution to the entire business enterprise.

Pre-Litigation Strategy
Companies frequently identify scenarios in which competitors are purportedly infringing on the claims of their existing patent portfolio. They rely on Ocean Tomo’s expertise to complete the independent market research necessary, supported by our existing databases and technology, providing them with the unbiased and supported information necessary to approach the target companies in negotiation prior to commencing litigation proceedings.

Financial Reporting
We provide a full suite of valuation services for every financial reporting requirement. Our practice leaders have direct “Big 4” experience, enabling them to understand the exact form and type of deliverable necessary to satisfy the increased quality requirements of external auditors, as well as the SEC.

Financial Reporting Services:

  • ASC 350 – Goodwill & Other Intangible Assets
  • ASC 360 – Long-Lived Asset Impairment
  • ASC 718 – Stock-Based Compensation
  • ASC 805 – Business Combinations (Allocation of Purchase Price)
  • ASC 820 – Fair Value Measurements
  • ASC 852 – Fresh Start Accounting

 

Tax
Accurate and highly defendable valuations are required for a wide variety of state, federal and international tax planning considerations. We are acutely aware of the level of quality and diligence expected by taxing authorities and our work is always completed under the assumption that a detailed audit and review will be completed and our work product challenged. We stand ready to defend our conclusion in each case.

Intellectual Property Holdings Companies
Consolidating intellectual property ownership can aid a company in achieving operating and tax planning goals. Ocean Tomo professionals have significant experience in establishing all aspects of Intellectual Property holding companies, from initial organization, to start-up, to providing on-going support. Using our vast intellectual property valuation experience, Ocean Tomo also assists in setting the appropriate royalty rates for patents, trademarks, and other intangibles held within holding companies.

Transfer Pricing
Transfer pricing issues surrounding intellectual property have become a major focus for companies and tax authorities alike. Setting arm’s length prices and royalty rates for intangible assets requires careful analysis to determine appropriate prices, as well as to produce the documentation required to avoid transfer pricing penalties. Ocean Tomo’s experience in valuing and transacting IP is invaluable for analyzing the economics of transfer pricing structures, as well as supporting the analyses, and developing the appropriate IRC section 6662 documentation package. Additionally, we perform analyses for cost sharing arrangements (CSAs).

Reorganizations
Companies with global operations frequently reorganize the corporate structure, which may involve the transfer of assets between legal entities. We perform valuations to ensure that assets are transferred at a supportable and current fair-market value conclusion as domestic and international taxing authorities frequently scrutinize the tax benefits obtained from such planning activities.

Asset Transactions – Internal Revenue Code Sections 1060 & 338(h)(10)
Buyers and sellers have specific considerations in structuring transactions as either asset acquisitions or stock acquisitions. When a transaction is structured as an asset acquisition, or a stock acquisition that is treated as an asset acquisition under IRS provisions, Ocean Tomo is engaged proactively as the transaction is being negotiated, assisting in the depreciation recapture computation to determine the gain or loss on sale. Our work product assists in moving the transaction toward its closing stages, and we stand ready to defend our methodologies, assumptions and conclusions to the IRS.

Personal Goodwill Valuation
We determine the fair market value of this self-created intangible, where applicable, to support the business seller’s position as a “key man” employee that can provide favorable tax benefits if very stringent requirements are met.

Valuation of Minority Interests for Estate and Gift Purposes
Valuations are of gifted minority interests are required to provide support to the IRS that these transfers occurred on an arms length basis.

General Business Planning
In addition to performing valuation of specific assets for risk management and insurance purposes, we also provide valuation of specific equity interests for transaction planning purposes, or to support buy-sell agreements.