Corporate Valuations
ATI Capital Group, Inc. ("ATICG") is a leading business valuation firm specializing in technical appraisals for estate and gift tax purposes, family limited partnerships, divorce proceedings, shareholder derivative actions, corporate mergers and acquisitions, transactions with qualified plans, and for buy/sell transactions.
ATICG's work in the area of corporate valuations is highly respected, having represented both the Internal Revenue Service and the taxpayer in Tax Court, demonstrating our professional stature and independence.
ATICG fully subscribes to technically rigorous report standards and guidelines which include; The Uniform Standards of Professional Appraisal Practice ("USPAP") as promulgated by the Appraisal Standards Board of The Appraisal Foundation; The American Society of Appraisers – Business Valuation Section ("ASA"); American Institute of Certified Public Accountants; The Institute of Business Appraisers ("IBA"); Revenue Ruling 59-60 and subsequent IRS rulings. Our reports are thorough, defensible, professional, and technically in line with current case law.
ATICG strictly adheres to the ethical standards of the American Institute of Certified Public Accountants and the American Society of Appraisers,and as such, we are prohibited from serving as advocates on valuation projects, thus ensuring objectivity and independence when rendering valuations or expert witness testimony in court.
Our staff is deeply rooted in the business community and is committed to professional excellence and client service with credentials including Accredited Senior Appraiser ("ASA"), Accredited in Business Valuation ("CPA-ASA"), the highest accreditation given by the American Institute of Certified Public Accountants, advanced training and experience in corporate finance, public accounting, auditing, forensic accounting, as well as income tax planning and compliance. ATICG's professional staff is highly qualified in the fields of corporate finance and the valuation of privately held business interests.
Self-Contained Summary Report
ATICG has created a “Self-Contained Summary” report for those engagements that do not have a contestable purpose. For example, during the set up of a buy\sell agreement two things are very important; one is that the agreement is structured properly to protect the estate after a “triggering event”; and two, that the approximate value of the company is determined to make sure an adequate “funding mechanism” can be put in place to adequately compensate the selling party. Proper determination of the value of the Company at implementation is critical in protecting the estate of all parties. Since the parties are not adversary, as potentially would be the case with an Internal Revenue Service ("IRS") audit, for example, the Uniform Standards of Professional Appraisal Practice ("USPAP") allow for the valuation report to contain certain allowable “adjustments in scope" from USPAP. These changes in scope are permitted if they are agreed to by the engaging party, and the departures do not restrict the valuator so much that it is not possible to perform the valuation without our report being misleading. In this case our self-contained summary report is an economical way to meet the requirements of USPAP while accurately determining the value of your company.
Feasibility Studies
ATICG has created a feasibility study report for those engagements where one or more courses of financial direction are contemplated. Through our proprietary software, we are able to use your historical financial data from the last five years and project two simultaneous hypothetical future cash flow scenarios while holding all else constant, this process is known as the scientific method. Our most popular application is in the Employee Stock Ownership Plan Feasibility Study ("ESOP"). When a transaction such as an ESOP is contemplated by management, it is often difficult to understand the affect the financing and tax benefits will have on the projections of the Company. To that end, through our software, we have the ability to prepare, with management's assistance, up to ten (10) years of interactive, non-linear projections that project out the balance sheet, income statement and changes in cash. We then calculate all regarded ratios, weighted average ratios, and growth trends for side by side comparison to the historical numbers. We also chart and graph all ratios over the same historical and projected periods. Once management is satisfied with the projections, we calculate another complete set of projections taking into consideration all aspects of the ESOP. This is to include the cost of the transaction, the affect the loan has on the balance sheet, income statement, and changes in cash. We calculate the affect the transaction has on the corporate tax liability and of course we can calculate the affect of all of the above if we change the terms on the loan. The affect of all “what if” scenarios can be easily calculated in real time, minutes not days. Upon completion we have the ability to examine side by side historical, the “as is” projections and the “if implemented” ESOP projections. We can clearly see the affect these changes in structure will have on the Company. This powerful tool takes much uncertainty out of the decision to determine if the company should, or should not, undertake an ESOP. It becomes very clear when examining the financial data in this concise manner. All financial matters are addressed, putting management in the position of making a very well informed business decision. This “tool,” our software, allows management to see, with relative certainty, what the Company will look like five years from now.
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