Our valuation offerings include:
Business valuation/appraisal
A utility system, generally consisting of integrated demand or supply, distribution or collection, and end-users of a commodity (e.g., water, wastewater, irrigation, solid waste, electricity, or gas), is a special-purpose property. Since the assets are specifically designed, configured, and constructed solely as a utility system, no alternate highest and best use would be considered in developing a Conclusion of Value (a Conclusion of Value can be stated in a range of value as well as a single value). In addition, ownership of this special purpose property would be expected to include a bundle of rights that could include, but is not limited to, physical assets, certain real property, operating permits, or demand and supply contracts, specialized facilities, operational rights, service area rights, as well as other tangible and intangible assets. As a special purpose property, there is no going concern value for land, buildings, and equipment (PP&E) as a utility system or business enterprise independent of, or without the intangible rights and permits to provide services for a base of customers, operate with or without competition, and deliver an essential public purpose use to a generally protected, defined service area. As such, the development of a Conclusion of Value, whether defined as Fair Market Value, Fair Value, or Investment Value, requires the appropriate application of procedures, approaches, and methods that conform to the Uniform Standards of Professional Appraisal Practice (USPAP)
Calculation engagement
A calculation engagement is an alternative to a business valuation/appraisal that involves the preparation of a calculated value or range of values of tangible or intangible assets, or both. It will utilize a predetermined valuation approach or approaches in consultation with the client. Possible approaches used for a calculated value, which are to be determined as part of an assignment, include a Cost Approach, an Income Approach, and a Market Approach. Given the limited, special-purpose nature of the market for utility systems, the selected methods and procedures for a calculation engagement will also be predetermined in consultation with the client. A calculation engagement will not include all the procedures required for a business valuation/appraisal. If a business valuation or appraisal is completed for the same assets, the results may differ.
Regardless of the scope or standard required, our team ensures that the unique complexities of your special-purpose assets are accurately captured, delivering a defensible conclusion of value that empowers you to move forward with confidence.
