Contact Us

Home  >  Our Services > Business Valuation Services


Business Valuation Services

Our “Valuation and Advisory” department provides the following valuation services to domestic U.S. firms supporting their compliance with IRC (Internal Revenue Code) and accounting standards mentioned below.


409A Valuation

• Involves estimating the Fair Value/Fair Market Value of common stock for the purpose of establishing the strike price for stock option grants.

• Required by private companies and start ups that rely on stock based compensation for employees.

• Under Section 409A of the IRC, a company must ensure that any stock option granted as compensation has an exercise price equal to (or greater than) the fair market value (the “FMV”) of the underlying stock as of the grant date; otherwise, the grant will be deemed deferred compensation, the recipient will face significant adverse tax consequences and the company will have tax-withholding responsibilities.

• At Belmont Acquisitions, 409A Valuations are provided by experienced professionals who can also provide audit support, which we believe is valuable for any company.


Purchase Price Allocation

• Involves allocating the purchase price paid in a transaction to tangible assets, intangible assets and goodwill acquired.

• Required by companies involved in acquisitions or business combinations.

• According to the FASB ASC 805 (previously SFAS No. 141) accounting rule, all business combinations are required to be accounted for by the purchase method.


Goodwill Impairment Testing

• Involves testing the goodwill and other long lived assets for impairment.

• Required by companies that have made acquisitions or have long lived assets.

• Accounting rule FASB ASC 350 (previously SFAS No. 142) requires companies to use a two-step process to measure the impairment of goodwill.


Derivatives Valuation

• Involves estimating the Fair Value of complex financial instruments with embedded derivative features such as convertible debt, warrants, put/call options.

• Required by companies that have exposure to complex financial instruments such as public companies with complex instruments on balance sheet or private companies looking to file S1 within an 18 month window.

• ASC 815 (formerly FAS 133), Accounting for Derivative Instruments and Hedging Activities, provides guidance on the specific accounting treatment of a multitude of derivative instruments.

• At Belmont Acquisitions, we use the advanced technique of Monte Carlo Simulation for the valuation of derivatives.


Portfolio Valuation

• Involves estimating the Fair Value and mark-to-market of holdings in a portfolio.

• Required by Venture Capital Funds and Private Equity Funds to report fair value of holdings at each reporting period.

• At Belmont Acquisitions, we help ensure compliance with applicable accounting standards (including ASC 820), and prepare and review a fund's valuation policies, procedures, and results.


Carry Forward of Net Operating Losses (NOLs)

• Involves estimating the Fair Market Value of all the classes of stock in a company pursuant to equity transactions, to establish limits on Net Operating Losses usability.

• Required by companies that have NOLs and have had multiple equity transactions (VC funding, private placement, shareholding pattern change, ownership changes).

• Section 382 of the IRC generally requires a corporation to limit the amount of its income in future years that can be offset by historic losses, i.e. net operating loss (NOL) carry forwards and certain built-in losses, after a corporation has undergone an ownership change.


C Corp to S Corp Conversion

• Involves estimating the Fair Market Value of the business and assets of a C Corp. before conversion to S Corp. to establish the Built-In Gains.

• Required by companies that plan or have elected to convert from C Corp. to S Corp.



©2007-2015 Belmont Acquisitions Corp  - All Rights Reserved