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Fairness Opinions to be Required for Advisor-Led Secondary Transactions
In early 2022, the U.S. Securities and Exchange Commission (SEC) voted 3-1 to propose new rules and amendments under the Investment Advisors Act of 1940 (Advisors Act), which the dissenting Commissioner categorized as a “sea change”, that would have a significant impact on private fund advisers.[1] The proposed reforms signal that the regulatory pendulum at…
Valuation Consideration: Early Termination of a QTIP or CRT
In the context of estate tax and income tax planning, taxpayers commonly choose to protect their assets by leveraging various types of annuity trusts, unitrusts, or both. These trusts provide income to an income beneficiary for a designated period of time, then leave the assets to one or more remainder beneficiaries. The income stream is…
STRUCTURING DEALS – EARNOUTS & ROLLOVER
In today’s hot Mergers and Acquisitions (M&A) market, deal negotiations have become increasingly more competitive. Earnouts and contingent rollover equity can be effective tools for bridging the valuation gap, sharing risk between the buyer and the seller, and addressing key person exposure. This article discusses key considerations when structuring earnouts and contingent rollover equity as…
Valuing Private Equity Interests
Valuing Private Equity Interests Steps in valuation of GP and LP interests in Private Equity Funds, and why the capital account balance is not always a reliable indication of the value of the interest. When valuing general partner (GP) and limited partner (LP) interests in private equity funds, specifically those in the early stages, a…
Launch of Estate & Gift Tax Valuation
Intrinsic is a highly collaborative team of financial experts, providing expertise on valuation and transaction advisory matters, focused exclusively on the unique needs of the high net worth, family office, and private equity clientele. Members of the firm joined from roles in not just Big 4 accounting and large, international valuation firms, but also private…
Portfolio Valuation During Uncertain Times
The COVID-19 outbreak contributed to market volatility initially causing substantial declines in market capitalization for public companies and potentially negatively impacting companies’ financial performance through supply chain and production disruptions, workforce restrictions, travel restrictions, reduced consumer spending and sentiment, among other factors. Given the heightened degree of uncertainty, we have had some insightful conversations with…