Our valuation practice is rooted firmly in our economics and finance training. Unlike a typical “valuation shop” or appraisal firm, we do not provide template-based work product that follows a predefined approach to the problem. Instead, we approach valuation as we do any other task. We examine the underlying economics and finance issues, identify available data, and work with our clients to find the most reliable methodology for solving the problem. As a result, our solutions to valuation problems are both economically rigorous and practically sound.
The Value of Intangible Assets
At the core of this transfer pricing dispute was the relative contributions to profits of two intangible assets: marketing and R&D. Cambridge Finance Partners worked for over two years with six testifying experts including Noble Prize winner Joseph Stiglitz and Cambridge Finance Partner’s Michael Cragg. …read more
Valuation of a Terminated Forward Power Contract
In a dispute between a major power generator and an investor-owned utility, CFP’s Dr. Fenn, working with the law firm of Simpson Thacher, offered testimony regarding the valuation of a large forward power contract that had been lawfully terminated. Over the course of a one week arbitration in Los Angeles, CA, Dr. Fenn testified for nearly 6 hours before retired federal judge John Martin.
Complex Valuation and Risk Analysis
Xcel Energy v. United States of America was slated to become the fifth Corporate Owned Life Insurance (COLI) case to reach trial. Among the hotly contested issues was the pre-tax profitablity and valuation of life insurance policies extending out over 40 years. Finance experts for the taxpayer argued that the policies contributed hundreds of millions in value even absent the contested tax deductions on policy loan interest. Testifying for the United States, CFP’s Dr. Fenn …read more
AIG et al. v Sears
Sears was one of the first companies to securitize its credit card receivables. In this dispute with its bond holders, Cambridge Finance Partners was asked to analyze the pricing and market response of all of Sears’ bonds including general obligation bonds, those secured by credit card receivables and those involving a provision that allowed Sears to call its bonds in the event of a large decline in receivables. A central component to this study was …read more
Procter & Gamble et. al. v. The United States of America
Robert Noah, an expert witness for the United States, was asked to address the purported non-tax business purpose of a series of transactions involving an inter-company transfer payment, pre-payment for goods, and related impacts on risk management and, in particular, foreign currency hedging. Dr. Noah’s analysis addressed valuation, hedging efficiency, hedging costs, and business purpose for transactions related to significant claimed tax reduction. The Court ruled in favor of the United States in summary judgment.
Sprint-Nextel Merger
Cambridge Finance Partners assisted counsel for Sprint-Nextel in a matter related to a contractual obligation to acquire Nextel Partners. …read more
Kohler Company v. United States of America
Cambridge Finance Partners was hired by attorneys for the United States. We assisted the governments testifying experts, and provided analysis related to the value of restricted foreign currency and soverign debt. …read more