The Financial Accounting Standards Board's ("FASB") recently enacted Statement of Financial Accounting Standards ("SFAS") 141/142 and the current business climate have created a growing need for independent expert valuation services. SFAS 141/142 eliminated pooling as an accounting treatment for business combinations, leaving only purchase accounting treatment for such transactions. Consequently, goodwill and certain intangibles are no longer subject to amortization. Goodwill, however, is subject to periodic impairment reviews.

A goodwill impairment test involves a valuation at a "reporting unit" level. The resulting fair value of the reporting unit is compared to its carrying value on the company's balance sheet to determine if goodwill impairment exists. If impairment exists, an allocation of the going concern value to its various tangible assets, intangible assets, and residual goodwill is required.

With the recent heightened scrutiny of accounting practices and audit firms, an independent valuation firm can reduce the perceived risk of accounting problems and improve a firm's "quality" of earnings.

SP&H provides businesses with cost-effective and well-supported valuation conclusions. With extensive experience and expertise in valuing goodwill under intense third-party scrutiny, SP&H is well qualified to provide independent valuation services.

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