Today’s private equity fund holdings are more complex than ever, which has given rise to ever-increasing regulatory scrutiny. To value portfolios fairly, you need experts who understand and can support dynamic value standards for illiquid and intangible assets. BVC has unparalleled expertise in private equity fund valuation. We’ve valued single investments and full portfolios for hundreds of companies.
Our close relationship with the SBIC Program and its administrators gives you the confidence of knowing a BVC valuation will withstand any examination. Who better to prepare and support your valuation than the people who re-wrote the valuation guidelines used by those very regulators?
Services Tailored Exclusively For Private Equity
We recognize that private equity funds have their own particular needs. Due to their unique operating climate they often require a different level of technical expertise and robustness of service.
We are very comfortable operating in the private equity world and have extensive experience with its unique requirements. We provide fund-level valuation services to satisfy the fund’s own financial reporting requirements. But we also provide our entire range of valuation services to each of the fund’s portfolio companies.
At one time or another all of the valuation services BVC offers are needed by private equity funds in addressing their portfolio companies. Due to our extensive experience with private equity, many fund managers use us as the one -stop shop for all their valuation needs.
We understand them. We can work with them. We get them what they need and do it right the first time.
Authoritative Expertise in Private Equity Regulations
We are the trusted, objective arbiter of fair value in what is often an adversarial environment: valuation guideline compliance, IRS issues, SEC financial reporting, purchase price allocations, merger and acquisition pricing, or disputes between shareholders.
As the primary valuation advisor for the Small Business Investment Company Program — with more than $24 billion invested in 4,500 companies — BVC was asked to author a comprehensive report on the adequacy and applicability of current venture capital and private equity valuation methodologies. This report recommended significant revisions to SBA’s valuation guidelines. Most of the recommendations have been incorporated into the current set of SBA’s Valuation Guidelines for Small Business Investment Companies (SBICs) and related TechNotes.
Our specialized experience in this arena over many years has enabled us to become a recognized authority on the valuation standards used by the venture capital and private equity industry, including the following:
- SBA’s Valuation Guidelines for Small Business Investment Companies (SBICs)
- International Private Equity and Venture Capital Valuation Guidelines (IPEV)
- Private Equity Industry Guidelines Group (PEIGG) Guidelines for Valuation of Private Equity Investments
- Financial Accounting Standards Board Accounting Standards Codification – Fair Value Measurements and Disclosures (ASC 820, formerly FAS)
Services For Private Equity Funds
Our private equity valuation services cover valuation requirements for both portfolio companies as well as the fund itself.
BVC can assist general partners with their fund-level requirements:
- Mark-to-market reporting for equity investments
- Carried interest valuations for personal tax planning
- Cross-fund transfers of portfolio companies
- LP reporting and repurchase
We produce sophisticated, supportable, timely valuations to assist companies with their complex domestic and international reporting requirements, including:
- Purchase price allocation
- Goodwill and long-lived asset impairment testing
- Employee stock options and restricted stock
- Variable interest entities
- Financial guarantees and indemnifications
BVC leverages its considerable valuation experience to assist clients in making informed business decisions in critical transactions. Our services include:
- Fairness opinions
- Solvency opinions
- Capital adequacy opinions
- ESOP transactions
- Going-private transactions
- Related party transfers
- Special dividends