Erickson Partners' services are in three primary categories:

• Valuation
• Litigation Support
• Advisory Services

Valuation

Closely held and public companies require independent valuations of their securities for numerous reasons such as acquiring a business, allocating a purchase price, buyouts of shareholders' interests, determining and planning for tax liabilities, issuing options or warrants, buy/sell equity incentives, creating and managing an ESOP, and the list goes on. Erickson Partners' knowledge, experience and expertise to understand and determine the value of a company is our core strength and compentcy. Our team at the firm combines over 30 years of real world experience with strong analytical and research techniques to carefully and independently determine value in today's demanding marketplace.

Click to see more discussion on:

• Purchase Price Allocations and Intangible Assets (FAS 141 & 142)
• Estate and Gift Tax Valuations
• Options and Derivatives (IRC 409A & FASB 123)
• Employee Stock Ownership Plans
• Shareholder and buy/sell agreements

Purchase Price Allocations and Intangible Assets

Financial valuations are required under FAS 141 (allocation of purchase price) and FAS 142 (impairment testing) for long lived assets, such as goodwill. These assets include intangibles such as customer lists, contracts, software, patents, copyrights, and trademarks among others.

Erickson Partners has had extensive experience in valuing these assets. Our professionals have performed numerous valuations across multiple industries. We have extensive experience in high tech, insurance, real estate, and oil & gas. We have even used our expertise to assist in developing FAS 141 & 142 audit procedures and policy at a Big Four accounting firm.

Erickson Partners provides independent, well documented valuations of intangible assets. Our expert team is knowledgeable of the latest FASB regulations and their impact on the fair value of various asset categories.

Additionally we have assisted companies in responding to SEC questions concerning FAS 141 & 142 issues.

Estate & Gift Tax Valuations

Erickson Partners' professionals have had a long history of providing highly developed estate and gift tax valuation services for some of the top tax attorneys, CPA's and financial planners in the country. Additionally, we have used our expertise to develop some of the most sophisticated and creative valuation techniques and testimony in tax court cases. All of these services are performed in conjunction with the best personal service that we can provide for our clients.

Our appraisals are guided by applicable IRS code, rulings and precedent. In addition we follow the highest standards in business valuation as promulgated by the American Society of Appraisers and the Uniform Standards of Professional Appraisal Practice. The result is an independent and professional opinion of value that can withstand scrutiny and challenge. We stand by our work and are prepared to discuss our report and results with our clients, the IRS or another appropriate third party if required.

Estate and gift tax services include:

• Valuations of interests in closely held businesses, including family limited partnerships, and securities for gifting or estate returns;
• Discount studies for lack of control and lack of marketability;
• Consulting services and litigation support.

Options and Derivatives (IRC 409A & FASB 123)

Erickson Partners' understanding of closely held stock can become a critical component of companies' administration of stock options, warrants and other forms of equity based compensation.

Equity based compensation for both a closely held company (particularly start-up and early stage companies) as well as a publicly traded company is a critical issue many times. Regulations from both the SEC (FASB 123) and the IRS (Section 409A) can significantly affect the way in which private companies approach valuing their equity, setting exercise prices for their stock options, and establish values for other stock based compensation. Section 409A describes taxes and penalties for companies that are not properly valuing their equity.

Both auditors and the IRS have encouraged these companies to utilize qualified appraisers to value their stock and in pricing options. Many companies are adopting these "presumptive" stock valuation methods in order to shift burden away from auditors and the companies themselves. In fact, a company working with Erickson Partners can shift the burden of proof on this issue to the IRS.

We provide the sound, independent and objective valuation that a company needs in these situations. And, as always all of our services are performed in conjunction with the best personal service that we can provide for our clients. Ask Erickson Partners, LLC.

Employee Stock Ownership Plans

Over the years Erickson Partners' professionals have worked with numerous ERISA and ESOP trustees, providing some of the most qualified and sound valuations in the country. They have been performing valuations related to employee stock ownership plans since Congress legislated ESOPs in 1974. Our understanding of the unique structures and issues related to ESOP's have served our clients well.

A prime example of this would be the well known case of Howard vs. Shay whereby Don Erickson's opinions were upheld through appeal all the way to the Supreme Court of the United States.

Our ESOP work is understandable, supportable and independent. The result is opinions that will stand up to the highest levels of scrutiny and challenge which gives our clients peace of mind that the job has been done right…the first time.

Shareholder and buy/sell agreements

Erickson Partners' professionals have had a long history of providing quality independent valuations subject to the terms of a shareholders agreement or a buy/sell agreement. Our experience and independence have allowed us to help companies through the process smoothly. We also have often acted as a third party valuator if disputes arise as to values. All of these services are performed in conjunction with the best personal service and integrity that we can provide for our clients.

We follow the highest standards in business valuation as promulgated by the American Society of Appraisers and the Uniform Standards of Professional Appraisal Practice. The result is an reasonable, independent and professional opinion of value that withstands scrutiny and challenge.

Litigation Support

The ability to explain and simplify complex business and valuation issues to a judge or a jury can be a significant differentiator and part of a winning formula. Don Erickson, ASA has testified over 30 times in trial on such diverse issues as minority interests, enterprise value, intangible values, intellectual property and royalty rate analysis, dissident stockholder cases, fairness opinions, economic damages and lost profits.

Our skills in this area are enhanced by being able to incorporate real world experiences and case studies coupled with theoretical and economic concepts, models and forecasts. Erickson Partners can combine the academically supportable financial analysis with transaction experience to develop understandable and credible financial opinions in complex valuation assignments.

We have worked on and succeeded in cases with the highest of stakes - WorldCom, Blockbuster, Walt Disney, Rainforest Café, the list goes on. We also bring the same effort and expertise to smaller clients where the stakes are no less important. No matter whom our client is we do our best in developing independent and supportable opinions. When it counts, count on Erickson Partners, LLC.

Click to see more discussion on:

• Economic Damage and Lost Profits Analysis
• Dissident and Oppressive Shareholder Actions
• Regulatory and Tax Litigation
• Intellectual Property

Economic Damage and Lost Profits Analysis

This area of practice is one in which Erickson Partners has especially in-depth knowledge and experience. Our experts have handled cases from less than $1 million in damages to over $1 billion.

This is an area of practice that combines all skills of a valuation expert, financial detective, and a practical economist. A company cannot afford to merely ignore what appears to be an unsupportable claim and simply cross examine the opposing expert. This can lead to financial disaster as reflected in the famous Texaco/Pennzoil case. Instead, careful economic and financial analysis of the claims and the development of appropriate counter positions must be done.

Many times the key to a successful position is an in-depth understanding of the value and profit drivers of a business and being able to correctly isolate the financial and competitive changes that affect that business.

We have been successful on both the plaintiff and defense side of cases. We have been able to effectively develop and support damage claims (where appropriate) for plaintiffs as well as defending companies from claims that sometimes if inadequately defended or supported can lead to damage awards that should not have happened.

Dissident and Oppressive Shareholder Actions

Erickson Partners' professionals have had a long history of providing quality independent valuations subject to the terms of a shareholders agreement or a buy/sell agreement. Our experience and independence have allowed us to help companies through the process smoothly. We also have often acted as a third party valuator if disputes arise as to values.

Many times our clients are in need of a strong and supportable valuation in order to settle stock valuation disputes as it pertains to not only private, but public companies as well.

Regulatory & Tax Litigation

Some cases that are tax or SEC oriented require a valuation expert with strong knowledge of tax or accounting rules as they pertain to valuation. Erickson Partners has the background and experience needed to excel in these situations. Don Erickson was a partner in the tax group of Arthur Young and later Ernst & Young and has testified numerous times in cases related to these issues.

One recent example was the WorldCom Securities case. The area of the case Erickson Partners was involved in was related to FAS 121. Plaintiffs claimed Arthur Anderson had improperly performed its FAS 121 analysis in 2000 and 2001. Having been a partner in Ernst & Young's valuation practice and performed numerous FAS 121 reviews, Mr. Erickson was able to identify, analyze and successfully rebut key issues in the case and in the work prepared by the professionals and experts for the other side.

Intellectual Property

Erickson Partners has valued numerous patent, trademarks, contracts, customer lists, and secret technology over the last 30 years. Our core understanding of the nature of intangible assets and intellectual property allow us to be able to recognize, analyze and assess value to them. Don Erickson has also previously testified to appropriate market royalty rates for patents. Our team at the firm combines over 30 years of real world experience with strong analytical and research techniques to carefully and independently determine and support value in the courtroom, negotiating table, and the marketplace.

Advisory Services

Erickson Partners also has experience and ability to assist clients in the role of a trusted advisor. Some of these roles include issuing opinions of fairness, solvency and capital adequacy. It also includes buy and sell side advisory and transition and succession planning. Our core understanding of valuation concepts and client service allows us to help our clients make the most informed and best decisions possible.

Click to see more discussion on:

• Fairness Opinions
• Solvency Opinions

Fairness Opinions

Erickson Partners can assist boards of directors, investors, trustees and other corporate and organizational leaders in fulfilling their fiduciary responsibilities by providing them with independent opinions about the financial fairness of a pending transaction.

A complete analysis, including careful assessments of the planned transaction as well as alternatives, allows clients to make informed decisions in the interests of their constituencies. A well-timed autonomous analysis may establish that fiduciaries have sufficiently considered the planned transaction and the potential alternatives, and have appropriately exercised their business judgment

Solvency Opinions

Leveraged transactions, stock redemptions, and dividend distributions may each run the risk of causing fraudulent conveyance or a fraudulent transfer of assets. The penalties for fraudulent conveyance can be harsh: liability for directors, loss of security interests for lenders, stakeholders could be forced to return transaction proceeds, and more.

A solvency opinion is a financial opinion issued typically at the close of a transaction that addresses certain financial tests of solvency. The opinion is often required by boards and/or lenders as additional protection in the case of a subsequent fraudulent conveyance attack.

Erickson Partners has historically rendered solvency opinions on behalf of lenders and other parties and has the experience and expertise to assist our clients in the best way possible.

We have provided Solvency & Fairness Opinions, Litigation Support and Gift Tax Valuations in Texas, Oklahoma, Arkansas, Louisiana and New Mexico. If your company is in need of litigation support, expert witnesses or business evalutions, please contact us through our online valuation information request form.