While Cost Recovery Solutions (CRS) is best known for our industry-leading cost segregation studies, our Tangible Asset Appraisal service is another core area of expertise. CRS valuation experts are highly trained in identifying the true, defensible value of your assets.
This month, we’re highlighting the impact of this specialized service through a complex success story involving a nationwide entertainment facilities client.
Overview
Our client operates upscale, interactive entertainment venues across more than 20 locations nationwide. These dynamic spaces feature a complex mix of assets, including bars, restaurants, electronic and traditional table games, live entertainment stages, and lounge areas. Following this major acquisition, the client contracted CRS to determine the fair market value and remaining useful lives (RULs) of their newly acquired assets for purchase price allocation and tax reporting purposes.
The Unique Challenges
This project presented a distinctive hurdle: our team was brought in to perform the valuation more than three years after the initial acquisition. In addition, the COVID-19 pandemic had significantly reshaped the landscape and value of entertainment assets. Our appraisers had to look back in time to identify which assets were in place and accurately determine their pre-COVID value.
Our Solution
Through rigorous due diligence, the CRS team conducted independent valuations for each location, including new sites that were under construction at the time of the sale. We carefully updated and corrected the client’s initial asset lists based on our research and findings.
In the end, our team successfully aggregated and valued thousands of individual assets to establish a total valuation and average RUL for categories including:
- Entertainment, A/V, and scoring equipment
- Point-of-sale and game card systems
- Furniture, fixtures, signage, and leasehold improvements
- Kitchen equipment and smallwares
- Computer equipment and software
By delivering a comprehensive, highly detailed appraisal, we gave the client the accurate data they needed to optimize tax reporting and move the business forward with confidence.
How CRS Can Help Meet Your Business Valuation Goals
Beyond purchase price allocations, our USPAP-compliant appraisals help clients make informed decisions, optimize tax assessments, enhance financial reporting, and streamline M&A transactions. Backed by accredited senior appraisers with specialty designations from the American Society of Appraisers (ASA) in Machinery & Equipment and Cost Surveys, along with other specialized credentials, the CRS team provides reliable, defensible valuations across a wide range of strategic needs, including asset-based financing, litigation support, property tax analyses, like-kind exchanges, fixed-asset management and impairment studies, and obsolescence evaluations.
Need a clearer picture of your asset values? Whether you are navigating a complex acquisition or need accurate valuations for your physical assets, our specialized team is ready to help you take control of your property’s tax burden.
For more information on our process, qualifications, and examples of how we’ve helped clients achieve their goals as part of an overall business valuation, read our Tangible Asset Appraisals page or contact us directly at 732.548.3855 to speak with our appraisal experts.