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Services - Financial Valuations

Financial Analysis

RCO performs financial due diligence during catalog acquisitions for a number of leading lenders and banking sources to determine the true value of a catalog of trademarks, songs or sound recordings.  Every RCO audit is prepared or reviewed by licensing accounting professionals.

We employ several methodologies and philosophies to determine the value of these intangible assets.  In the music industry, the most common methods are Market Multiples (usually for buy/sell agreements) and net present value of an adjusted revenue stream (usually for securitization on estate valuations).  Record Master may be valued either at gross margin or net cash flow depending on the intended use of the master and the integration of the acquired assets into an existing system of distribution.  For the merchandise industry, we use Market Multiples, Net Present Value and Cost methods and techniques.

Our valuations are performed independently without influence from either party in the transaction except for the verified information and data we receive, examine, and analyze to determine the asset value.

Database Analysis

With many client transactions, RCO is called in to review the existing data available to perform any financial analysis.  Our teams of database professionals work with your Information Technology personnel to help build a consistent and reliable data source to produce more accurate financial results. 

 The results of our database analysis have uncovered many areas where our clients have discovered additional revenue sources along with improving the quality of processes currently in place within our clients’ databases.