Startup Funding and Advisory Services
LCFA International works with innovative and disruptive early-stage companies around the world, providing startup advisory services related to valuation, funding, business plan/financial model review, cyber security advisory, due diligence, AML services and deal support.
Our team has worked with numerous early-stage companies, some of which have grown to become market leaders. Our team members have a diverse and significant track record working with entrepreneurs.
Connecting to ventures Capitals
Testing & Support
Our professionals have an in-depth understanding of financial reporting valuation requirements pursuant to ASC 805, Business Combinations (ASC 805) and International Financial Reporting Standard 3: Business Combinations (IFRS 3), enabling us to offer practical insights into key issues of concern to clients, auditors and regulators.
ASC 805 and IFRS 3 are standards with a high degree of convergence, although certain differences between the two remain. Under both ASC 805 and IFRS 3, the purchase price of an acquisition is allocated to the identifiable assets acquired and liabilities assumed at fair value, with limited exceptions. The identifiable finite-lived assets are then depreciated/amortized over their remaining useful lives.
Pre-acquisition pricing analysis, including estimation of accretion/ dilution impact on earnings by providing preliminary values and economic lives for assets to be acquired.
Valuation or structuring of contingent consideration with our team of specialists in our Strategic Value Advisory practice, and modeling potential future earnings impact.
Valuation of contingent assets and liabilities.
Pro forma allocations required for filings with the SEC and other regulators.
Acquisition-date fair value measurement of the consideration transferred, any previously-held equity interests and any remaining noncontrolling interests.
Acquisition-date fair value measurement and economic life analysis of acquired real estate, machinery and equipment, and identifiable intangible assets and intellectual property such as brands, technology, in-process research and development, and customer relationships.
Fair value measurement of contract liabilities (a.k.a. deferred revenue) and other liabilities.
Valuation of options to buy/sell equity interests.
Valuation of derivatives and other financial instruments and their subsequent mark-to-market, when required.
Allocation of purchase price and goodwill to reporting units (cash generating units).
Legal entity valuations for tax purposes in connection with the business combination.
Business valuation is impacted by a multitude of factors such as the subject company’s industry, its stage of development and the source of the invested capital. Additionally, the variety of purposes for which business valuations are performed, the influence of local jurisdictional rules and available valuation methods further increase the complexity of business valuation. It is this complexity that has driven LCFA to assemble a world class team of professionals which are unmatched in their collective industry and technical expertise and global presence. At the core of this team is a fundamental understanding of business valuation in general, while each team member contributes deep industry, service or geographic expertise.
Our team combines deep mathematical modeling and data expertise with commercial acumen and corporate finance experience. We are consummate quantitative problem solvers and cut through complexity to bring into focus the key issues.
We work collaboratively with clients to understand the business question and develop bespoke, user-friendly decision-making tools which gives them confidence in their understanding of the key drivers of risk and return.
Many securities issued in connection with share-based compensation or M&A transactions involve derivatives that require a valuation for financial reporting or tax purposes.
Our quantitative finance professionals specialize in developing customized models and deriving supportable inputs for these valuations.
LCFA specializes in financial reporting valuations based on the rules and guidance relating to business combinations, fresh start accounting, fair value measurements and impairment testing of goodwill and other assets. We offer an array of valuation and advisory services in connection with a company’s fresh start accounting through and upon emergence from bankruptcy process.