LevinGlobal

Challenges we solve

We know companies’ most common everyday challenges, and we know how to solve them.

Working with passion and enthusiasm next to our customers for 60 years allowed us to understand in depth their specific needs. We know which are the most common challenges faced daily by companies, but above all, we know how to solve them.

In everything we do, we believe in surprising our clients, we believe in giving more than they expect, we believe in exceeding expectations every time.

The way we exceed expectations is by…

  • recommending what is in our clients’ best interest, even if that means lower sales of our services, and
  • doing whatever it takes to deliver each project on time, without going against our procedures.

We do this while we optimize fixed asset management, value assets and businesses, and provide all related IT.

What is my company’s value?

What is my company worth?

What is its most valuable asset: plant, property and equipment, intangibles, human resources?

Finding the right answer is the starting point to achieve success in maximizing the value of strategic assets. Whether the company is seeking to increase competitive or financial advantages through merger or acquisition, to attract a buyer, or to make other business decisions, an objective and independent appraisal is an essential tool.

Determining the value of your company requires accurate and comprehensive analysis, not only in regard to financial condition or the quality of services and products, but to value its position within the respective industry, market, and economic environment. No matter what the objective is, at Levin Global we advise our clients when appraising their companies for:

  • Mergers, acquisitions and divestments
  • Tax purposes
  • Regulatory compliance
  • Financial planning and reporting
  • Bankruptcy and reorganization
  • Litigation and dispute resolution
  • Strategic planning

At Levin Global we are well seasoned in appraisals for companies of all sizes in a wide range of industries. Our consultants are familiar with the professional appraisal techniques utilized for well documented reports, as well as to support each opinion. Levin Global has experience with international agencies, government authorities, tax and legal advisers, all of which have reviewed and accepted our work, and endorsed the quality of our service.

Financial Appraisal Services:

  • Mergers and Acquisitions
    Appraisals to establish negotiation price
    Fairness Opinions
    Transaction advice
  • Financial Reporting:
    Purchase Price Allocation and Fresh Start Accounting
    Intangible asset appraisal, including intellectual property
    Goodwill and intangible asset impairment
    Long-lived asset impairment
  • Taxes:
    Appraisals for tax purposes
    Transfer prices
  • Strategic Advice:
    Fair Value
    Development and appraisal of financial projections to support investment decisions, transactions or business plans.

The process to be followed to determine the market value of a company is part of the knowledge we have gained in Levin Global over 60 years of experience valuing companies around the world.

Learn more about our knowledge and experience in Appraisals.

How to optimize fixed asset management

Good fixed asset management has immediate impact on business goals, and relates directly to economic and business aspects:

  • Financial impact is reflected on P&L and depends on depreciation criteria and how extraordinary results operations are controlled.
  • Tax impact, since asset management allows for tax optimization and taxes anticipation or deferral as convenient in compliance with regulations.
  • Costs impact, because utilizing IT for control and management, rationalizing processes and outsourcing activities improves efficiency and reduces costs.
  • Failure to comply with legal requirements for individual asset tracking or valuation may generate unnecessary risks. Companies also need to comply with the Sarbanes-Oxley Act to avoid material risks regarding physical counts and their values.

Levin Global offers a range of services that enable managing fixed assets in a user friendly, standardized and transparent procedure.

In short: we provide or set up internal procedures for optimum fixed asset management.

Learn more about our knowledge and experience in Fixed Assets Management.

What assets have we purchased and what is their real value?

In the process of a business combination?

Wish to assess possible impact of the transaction on profits?

Emerging from bankruptcy process and entering reorganization?

The applicable international and local norms require estimation of assets’ and liabilities’ fair value, to issue the balance sheet in a business combination (Purchase Price Allocation) or following reorganization (Fresh Start Accounting). They also establish a process to identify, appraise and determine the useful lives of intangible assets.

Analyses of the transaction market show that intangible assets and goodwill account for a significant part of the purchase price of companies acquired. Identifiable intangible assets will depend on the business and industry. Their value depends on their specific use ineach company and its market.

The impact of intangible assets’ depreciation during their useful life can facilitate or hinder a transaction. For this reason, it is advisable to include an allocation exercise in the due diligence process.

Allocation processes are subject to close scrutiny by accounting and tax authorities, which is the main reason for relying on consultant trusted advisor. An independent opinion is essential; therefore, these appraisals are conducted by independent parties and not auditing firms.

Levin Global’s experience is especially useful because we regularly support our analyses before auditors, and we seek to reduce revision times and project costs, thus contributing to effectiveness in the audit process. Each project is analyzed, and the features generating value are recognized. Our analyses also reflect different sources of information, cash generating units or legal entities, to facilitate the price allocation to assets acquired and liabilities assumed, for later impairment tests or for tax purposes.

 

Applicable Financial Reporting Standards:

 

 

International

US GAAP

Brazil GAAP

Mex GAAP

Purchase Price Allocation

IFRS 3

ASC 805 (after SFAS 141)

CPC 15

NIF B-7

Fresh Start Accounting  

ASC 852 (after SOP 90-7)

   
Impairment

IAS 36

ASC 350, ASC 360-10 (after SFAS 142 y 144)

CPC 01 (R1)

Boletín C-15

Fair Value

IFRS 13

ASC 820

 

NIF A-6

 

Learn more about our knowledge and experience in Appraisals.

Is comprehensive fixed asset management possible company-wide?

While various departments interact regularly with fixed assets, it is usually Finance and Plant Maintenance who do so in greater measure. Finance deals with all, from the accounting, tax and insurance perspectives, while Plant Maintenance focuses on those assets subject to the different types of maintenance procedures. Yet, their database structures are usually different, effectively creating information islands within the company concerning additions, transfers and disposals.

Fixed assets information should be shared by all departments. Nevertheless, our experience indicates that, in most organizations, different areas work separately without basic coordination. We frequently find that:

  • Fixed asset databases are outdated and do not correctly show item details, locations, cost centers and condition.
  • Assets are named and tagged differently by Plant Maintenance and Finance.
  • Maintenance knows when assets are transferred or disposed of, but cannot alert Finance since they do not share identification codes.
  • Maintenance and major repair costs are not registered correctly. Appreciation of overhauled assets is not usually done.

At Levin Global we collaborate with all areas to unify criteria for administrative and plant maintenance management, establishing a connection to synchronize visible and traceable fixed assets in both databases. Each database also has its own specific information such as physical components and work orders (Plant Maintenance) and accounting components (Finance).

The benefits are clear:

  • Finance has a continuously updated and reliable fixed asset database. Tracking and auditing costs are considerably reduced. .
  • Plant Maintenance can register costs with the same classification as Finance and obtain reliable information for repair/replace decisions.

Learn more about our knowledge and experience in Fixed Assets Management.

How to assess intangible asset values

Need to estimate the value of your assets for a transaction?

Want to determine the value of your client list for strategic purposes?

Wish to know the value of your brand to negotiate licensing?

Most companies are worth more than the sum of their tangible assets and working capital; therefore, it is crucial to allocate price to their intangibles. In many sectors, intangible assets, including goodwill and intellectual property, can make the difference with the competition. Consumer brands, patents for pharmaceutical companies, as well as licenses for telecoms, can be a significant part of the value, and can be appraised independently.

The challenge of appraising these assets is different to that of appraising a business or its stock. Knowing the value of identifiable intangible assets enables stockholders and their advisers to estimate their companies’ real value. It is also a tool to determine the capacity to pay for financing, since financial institutions recognize the value of certain intangibles to guarantee loans.

Identifying the value of intangible assets is important in any transaction, since one of management’s major concerns about registered intangibles is their depreciation and its effects on taxes. Goodwill, like indefinite-life intangibles, is not depreciated but is anyway subject to the impairment test.

At Levin Global we have a dedicated team well-seasoned in appraisals of all kinds of intangible assets, and we apply appraisal methods in compliance with accounting and tax regulations, to generate comprehensive analyses, that are accepted by the competent authorities, and useful to stockholders.

Some Usual Intangible Assets:

  • Brand or trade name
  • Franchises
  • Client relationships
  • Client lists
  • Supplier relationships
  • R&D in process
  • Technology/Patents
  • Copyright
  • Know-how
  • Software
  • Concession rights
  • Contractual rights/Licenses
  • Non-compete agreements
  • Lessor rights
  • Assembled workforce
  • Goodwill

Finding an appropriate methodology for valuing these assets is a strategic challenge that Levin Global handle it perfectly.

Learn more about our knowledge and experience in Appraisals.


How to satisfy regulating agency requirements

The objective of rate updates is to analyze the different components that determine the rates, in full compliance with current norms.

There are several aspects to be considered in the process:

  • Technical aspects: installations, design, quality, optimal networks.
  • Economic aspects: What is reasonable profit? What is the  value of the business?
  • Social aspects: Who pays and how? How do users perceive rate updates?
  • Political aspects: Quality of Institutions. Opportunism. Risks.

The rate results of an equation that efficiently combines three main service aspects: price, quality and sustainability. Regulators strive to be consistent in their decisions to reduce regulatory risk and contribute towards institutional quality, a requirement for future investments.

At Levin Global we have conducted hundreds of special consulting services for our clients to submit to national and state regulating agencies for different public services, on:

  • Fixed asset life cycles;
  • Asset valuation to revise rates;
  • Economic and financial valuation reports;
  • Detailed databases for the regulator to verify investments required in utility contracts.

We are proud to be the clear leader in fixed asset valuation for rate revisions, a reputation we have earned thanks to the consistent quality, clarity and reliability of the information we provide to companies and regulating agencies in various countries.

Learn more about our knowledge and experience in Appraisals.

How to guarantee success at internal and external audits

An audit provides objective evidence that the information in the Balance Sheet is valid, authentic and reliable. An asset audit shows if the assets in the balance sheet really exist, that the company owns them and the assigned values comply with GAAP.

Examination of this balance sheet component is based on the following objectives:

  • Confirm that they exist and are being used.
  • Verify ownership by the company.
  • Verify that they are being adequately valued.
  • Confirm that depreciation has been done in compliance with accepted methods.
  • Confirm consistency of appraisal methods.
  • Determine existing liens.
  • Confirm adequate presentation and disclosure of financial statements.
  • Verify insurance coverage.

At Levin Global we know how to help companies through this process, and we guarantee successful asset audits every time.

Learn more about our knowledge and experience in Fixed Assets Management.


How to apply the IFRS more efficiently

Adjustment to international accounting standards has been taking place for over ten years and is directly linked to increasing changes in the world business context and economic globalization. The current scenario requires information to be presented under uniform criteria so that shareholders can evaluate and compare company performances around the world.

Adhering to the International Financial Reporting Standards (IFRS) has considerable impact on the financial statement formats and on valuation methods of various balance sheet and income statement items. Fixed assets and intangible assets are two of the items most affected by these standards.

When implementing IFRS, companies need to restructure the information provided for fixed asset accounting, and implement new accounting procedures for their valuation.

At Levin Global we assist companies worldwide to go IFRS with our valuation services in compliance of the following standards:

•             IFRS 3 (Business Combinations)

•             IAS 16 (Fixed Assets)

•             IAS 36 (Impairment of Long-Lived Assets)

•             IAS 38 (Intangible Assets)

Learn more about our knowledge and experience in Appraisals.

How to guarantee compliance with the Sarbanes-Oxley Act

The Sarbanes-Oxley Act (SOX) appeared in response to a series of corporate scandals that affected American companies towards the end of 2001 as a result of bankruptcies, frauds and other inappropriate administrative deals that reduced investors’ trust in the financial information released by companies. This law reinforces controls that companies should comply with when releasing financial statements.

Furthermore, SOX establishes:

  • Standards for corporate and audit committees.
  • Accounting standards and criminal penalties for company managers.
  • Independent standards for external auditors.

SOX makes the CEO and CFO responsible for certifying financial statements and for declaring that they reasonably represent the company’s financial position. These managers are subject to criminal penalties if the financial statements include intentional material differences.

SOX establishes a new responsibility paradigm for companies and their directors. It creates a new standard for presentation of company information and internal control efficiency.

Fixed assets constitute an important part of many companies’ statements, which is why they are a key part of SOX compliance.  Therefore it´s in the company’s best interest to insure reliability in all financial information, particularly that pertaining to fixed assets.

At Levin Global we help companies around the world to guarantee SOX compliance in fixed asset management and valuation.

Learn more about our knowledge and experience in Appraisals.