1] Case Study: M&A and Real Estate Transaction Advisory

Situation

A leading distributor in its industry (the “Company”) had been approached by several interested parties regarding a business sale. The Company had no comfortable indication of value for the business or the real estate, no formal business plan or investor package, and little comfort with the transaction process.

Solution

C&J first conducted a fair market determination of value. Subsequent to this, C&J assisted the Company in the development of a business plan and investment bank grade marketing package. Over the next two years, as the company entertained offers for purchase, C&J was retained to assist in investment analysis and bid comparisons. C&J was also retained to advise the client in the sale leaseback transaction of their headquarters.

Results

The business plan generated increased interest in the company, and a several million dollar increase over prior offers. The Company successfully executed a transaction for over $25 million with a prominent private equity group. The Company also successfully executed a sale leaseback transaction on the real estate for over $4 million.

2] Case Study: Purchase Price Allocation SFAS 141 Valuation

Situation

A large publicly traded international auto parts manufacture (“the Company”) acquired several subsidiaries in the United States. The Company needed a purchase price allocation conducted on the subsidiaries’ assets to comply with SFAS 141. The subsidiaries’ assets consisted of over $100 million including financial assets, real estate, a significant machinery and equipment component, as well as intangible assets.

Solution

C&J completed a full purchase price allocation by valuing all components including financial assets, real estate, machinery and equipment, and intangible assets. C&J also assisted with net operating loss section 382 carryforward analysis of the merger, and with the proper calculations for the purchase price given exchange rate complications, and through interpretation of FASB pronouncements.

Results

C&J’s purchase price allocation was accepted by the Company’s auditor, and the Company was able to correctly book their assets in accordance with SFAS 141. C&J was later retained to assist with SFAS 142 impairment testing.

3] Case Study: Real Estate Tax Savings

Situation

A multi-property restaurant chain had never fully segregated the elements of their buildings into proper buckets according to the IRS, therefore never properly or fully realizing depreciation deductions and the resulting tax savings.

Solution

C&J completed a full cost segregation study of each building in the chain, in accordance with IRS guidelines. C&J also analyzed catch-up depreciation that had not been filed in previous years.

Results

C&J identified over $700K in catch up depreciation, resulting in immediate and substantial tax savings for the client.

4] Case Study: Estate Tax Savings

Situation

An estate owned a note receivable (a seller note) from a business which had previously been sold.

Solution

C&J completed an opinion of value on the note receivable taking into account the payment terms, the credit worthiness of the payor (or borrower), the business credit environment and market rates of interest for similar debt instruments.

Results

C&J valued the note at approximately 50% of its original face value.