Navigant’s Life Sciences valuation expertise extends well beyond analyses for regulatory compliance. We routinely provide valuations for our Life Sciences 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) – 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:
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. In performing a valuation of a company or reporting unit, we tailor our valuation approach to reflect the specific stages of development of the company or reporting unit, as clinical-stage companies and mature companies require different considerations.
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 Life Science clients, from start-ups to mature companies, 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 350 and FASB ASC 718 valuation services to Life Sciences companies. We understand that clinical-stage companies face different risks and challenges than mature companies and require a valuation approach to reflect these differences.
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 this 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.