Economic Analysis for Arm’s-Length Pricing
The Valuation Group provides transfer pricing documentation support for companies, CPAs, tax advisors, attorneys, CFOs, and advisory teams involved in related-party transactions, cross-border structures, inter-company charges, royalties, services, financing arrangements, and affiliated-company pricing matters.
Our work helps professional teams document the economic basis for inter-company pricing decisions in a manner that is organized, reviewable, and tied to the transaction being analyzed.
Why The Valuation Group
Transfer pricing documentation must connect the transaction to the economic facts. The analysis should address the parties involved, functions performed, assets used, risks assumed, contractual terms, markets served, pricing method, comparable data, and financial evidence supporting the result.
Our documentation support focuses on the evidence behind the pricing position: the transaction structure, financial records, inter-company agreements, functions performed, comparable data, and assumptions supporting the conclusion.
We prepare transfer pricing documentation for related-party transactions involving management fees, shared services, technical services, professional services, royalties, intellectual property licenses, tangible goods, asset transfers, financing arrangements, and other inter-company charges.
Our analysis focuses on the economic substance of the transaction and the support for the pricing method applied.
Transfer pricing documentation often requires analysis of the functions performed, assets used, and risks assumed by each party.
The Valuation Group reviews the business context, financial records, inter-company agreements, operating structure, market conditions, and transaction economics to help document the relationship between the parties and the pricing conclusion.
Related-party pricing may require consideration of comparable company data, comparable transactions, profit levels, margins, royalty rates, service charges, cost allocations, or other economic measures.
We provide analysis designed to support the selected pricing approach and explain the assumptions behind the conclusion.
We work with the professional team already advising the company. Our role is focused on the valuation, benchmarking, royalty, and economic analysis needed to support the transfer pricing documentation.
The CPA, tax advisor, or attorney remains responsible for the broader tax, legal, or compliance engagement.
