Financial Reporting Valuation Solutions

Navigant’s healthcare valuation consulting expertise extends well beyond analyses for regulatory or tax compliance. We routinely provide valuations for our payer and provider healthcare clients to assist them in meeting financial reporting requirements. Our areas of expertise include, but are not limited to:

Asset valuations for purchase accounting (FASB ASC 805 and FASB 958-805): In connection with the change of control of a business, companies are required to record the assets and liabilities at fair value. We have valuation experts with experience valuing all assets and liabilities that may require a fair value analysis:

  • Real Estate
  • Furniture, Fixtures, and Equipment
  • Current Assets (e.g., medical supplies and accounts receivable)
  • Identifiable Intangible Assets (e.g., trade names, CONs, licenses, non-compete agreements, provider networks)
  • Goodwill
  • Debt
  • Contingent Consideration 

Goodwill impairment testing (FASB ASC 350): On at least an annual basis, FASB ASC 350 requires companies to consider whether goodwill and other indefinite lived assets may be impaired. We have experience assisting clients with performing their Step 1 and Step 2 impairment analyses, as well as qualitative assessments.

Impairment testing of long-lived assets (FASB ASC 360): Given a change in circumstances or other triggering event where the carrying value of long-lived assets may not be recoverable, FASB ASC 360 requires that the long-lived assets be tested for recoverability. We have experience assisting clients in performing long-lived asset impairment tests and different approaches needed in applying the recoverability criteria in Step 1 of the test and fair value in Step 2 of the test.

Share-based compensation (FASB ASC 718): FASB ASC 718 generally requires that the fair value of stock-based compensation be determined on the date of grant and recorded as an expense over the vesting period of the award. Stock-based compensation can include stock options, stock grants, profit interests, and stock appreciation rights. We have experience in assisting healthcare clients in determining the fair value of all types of stock-based. compensation. In addition, our professionals have experience with applying the sophisticated valuation models that may be needed to address complex capital structures and performance-based vesting.

Some of the benefits of choosing Navigant to perform your valuations for financial reporting include:

  • We Know Your Industry: Navigant has provided extensive FASB ASC 805, FASB ASC 958-805, FASB ASC 350 and FASB ASC 718 valuation services to hospitals, health systems, managed care companies, and other healthcare companies. We understand the nature of healthcare provider and payer businesses, including the distinct tangible and intangible assets associated with each.
  • Focused Expertise: Navigant's valuation services are aligned by client need, industry segment and functional resource. We utilize project leadership and staff that are specialists in the requirements of financial accounting valuations. The engagement team members are well-versed in the valuation methodology and best practices unique to valuations in the healthcare arena. In addition, the senior members of the engagement team are involved from beginning to end on the engagement.
  • Consistency and Supportability: Our value estimates are fully supported by observed market patterns and appropriate valuation approaches. We have significant experience supporting and defending our conclusions with our clients’ auditors and the SEC. We continue to work successfully with the review personnel at all the major accounting firms. This ensures our opinions are rigorously supported, which is extremely important for a smooth review process.
  • Independence: Navigant does not provide audit services but rather specializes in providing consulting services, including valuation opinions related to financial and tax reporting. Accordingly, conflicts of interest are minimized because we do not provide audit services.

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