CRA was retained by the Trustee of a telecom services provider that had filed for Chapter 11 to value a patent portfolio that was central to a fraudulent transfer claim filed by the Trustee. As part of its work, CRA conducted diligence on the patent portfolio that consisted of more than 60 U.S. and foreign patents related to Private Branch Exchange (PBX) and call center technologies. Market and Income approaches, including license-litigate decision trees, were used to determine the value of the portfolio. CRA provided deposition and trial testimony in support of the claim.
ASC 820: Determining fair value in circumstances of reduced market liquidity or inactivity
Challenging market conditions relating, at least in part, to the COVID-19 pandemic are reminiscent of the financial markets during the global financial crisis...