RT Oncology

RT Oncology provides oral oncology drugs to community oncologists to improve efficiencies and patient care.

The Company raised the first tranche of their Series A financing, which includes additional performance based tranches. To determine the fair value of the common stock, we needed to establish the likelihood of future financings and their dilutive effect. We did this by modeling the future value of the Company using Monte Carlo techniques.

Ulthera

Ulthera Inc. is a medical technology company that provides ultrasound-based aesthetic medical procedures. The company’s technology provides non-invasive treatment options for dermatologists, plastic surgeons and facial plastic surgeons.

Caliber was engaged by Ulthera to provide fair value analysis of certain debt and derivative instruments for financial reporting purposes. The valuations of the instruments were dependent and contingent on expectations of future financing and the pricing of preferred stock issuance. We used Monte Carlo simulation techniques to generate expected enterprise values for Ulthera. Next, we adopted option methodologies to price the future preferred stock issuance using the simulated enterprise values. The values of the debt and derivative instruments were then calculated for each price path generated by the simulation. The fair values were derived from the average values, which were based off of a large number of iterations, ran assuming different scenarios.

Marsh

Marsh is a wholly owned subsidiary of Marsh & McLennan Companies, Inc. (NYSE: MMC) and is a global leading insurance broker and risk adviser with over 24,000 employees and clients in over 100 countries. With the consolidation occurring in the insurance brokerage industry, Marsh has been at the fore in successfully completing niche acquisitions that diversify its practice and round out its offerings to its clients. One such recent example is the acquisition of Trion.

Marsh has frequently turned to Caliber Advisors to assist it in its purchase price allocations under FASB ASC 805. Key to a successful analysis is simultaneous engagement of the acquisition team, internal accounting staff and company auditors so that all participants have the same information and can share their collective viewpoints. In our opinion, all participants, including the valuation analysts are necessary to getting the right answer for financial reporting.

RoyaltyShare

RoyaltyShare, Inc. is a venture-backed company focused on providing comprehensive royalty accounting services to record labels, music distributors and music publishers. RoyaltyShare offers artist and publisher mechanical royalty services and is a worldwide leader in web-based royalty processing solutions for the global music industry.

In recent years, the Company has acquired smaller companies offering complimentary technology-based solutions. RoyaltyShare turns to Caliber to determine the fair value of the acquired technologies, contracts and relationships under FASBs ASC 805 for its financial reporting requirements. Caliber’s combined expertise in ASC 805 and the music industry make it an ideal choice for RoyaltyShare.

Mercer

Mercer is a wholly owned subsidiary of Marsh & McLennan Companies, Inc. (NYSE: MMC) and provides human resource consulting and related financial advice, products and services to organizations. Caliber has been engaged by Mercer for several years to establish the fair values of intangible assets obtained by Mercer in its acquisitions.

For service companies, these valuations often rely heavily on the project future performance of the target and appraisers typically begin their analysis by using management’s forecast of the target company. These forecasts are often prepared by an acquisitions team and make use of large amounts of experience and expertise in operating companies of this type. However, as a result of recent guidance from the PCAOB requiring reasonability tests and supporting documentation of forecasts, these management forecasts must be able to not only survive board review, but audit review as well.

We work closely with Mercer’s acquisitions team to ensure that their forecasts are more easily made “audit-friendly” by gathering supporting documentation during the negotiation period and shortly after the transaction is consummated.