The Carrying Value Question: An Introduction to Intangible Asset Impairment Testing
When the Balance Sheet Becomes the Story A portfolio company loses its largest customer. Revenue falls sharply in the back half of the year, and the finance team flags the event as a potential impairment indicator. By the time the external auditors arrive, management has produced an internal memo estimating that the customer relationship asset, originally […]
Enhancing Valuation Confidence: The Role of Positive Assurance in Portfolio Valuation
When the Mark Gets Questioned The moment arrives in different forms. An auditor returns to a fair value conclusion with a request for additional support on the methodology applied to a Level 3 position. An institutional limited partner, conducting its own due diligence on the fund, asks how the manager arrived at a particular mark, and the answer that seemed […]
Personal Goodwill in Business Transactions: Not Just a Valuation Question — A Planning Imperative
Consider a professional services firm where three client relationships — each cultivated personally by the founder over fifteen years — account for 65% of annual revenue. The contracts are month-to-month. The clients call the founder directly. No formal account management structure exists. When this business goes to market, what is a buyer actually acquiring? It is […]
Portfolio Valuation Under ASC 820: A Practical Framework for Fund Managers
The Growing Importance of Fair Value in Private Markets For many fund managers, valuation becomes a focal point when it breaks down under scrutiny. Auditor challenges, LP questions around consistency, or valuation conclusions that do not hold up against market reality can create friction at critical moments. These issues often surface during audits, fundraising, or […]
Valuing Carried Interest for Trust and Estate Planning: A Strategic Overview
Few assets present as many valuation challenges in the context of estate and gift planning as carried interest. The value of carried interest is contingent on future fund performance, is governed by complex waterfall mechanics, and is usually very illiquid. These characteristics make it both difficult to value and, in some cases, difficult to defend under IRS […]