Our Experience

Industries Petroleum Natural Gas Chemicals Electronics Pharmaceuticals, Medical Devices, & Biotech Retail/Consumer Goods Technology Transportation Local/State Government School Districts Other Industries

Functional Areas Antitrust & Competition Analysis of Damages Forensic Economics Intangibles/IP Labor Economics Regulatory Economics & Finance Transfer Pricing Taxation Valuation Fiscal Impact Analysis Demographic Analysis Public Policy Analysis

 

Chemical Industry

IIC, Inc. has extensive experience assisting clients in the chemical industry with financial, economic, and strategic analysis. As globalization changes the competitive landscape, IIC, Inc. helps provides clients with an in-depth and knowledgeable perspective of the many issues facing the chemical industry today. As the industry expands and contracts based on market dynamics, chemical companies and governmental regulators require rigorous economic and financial analysis to assess potential investments, asset and enterprise valuations, tax impacts and environmental constraints. IIC, Inc. combines our knowledge of the science underlying the chemical industry market with robust financial and economic theory to provide clients with fundamentally sound and accurate analyses.

Our experience in the chemical industry spans the complete range of scientific, economic, financial and regulatory issues facing chemical companies and governmental regulators. We provide our clients with expert testimony, litigation support, strategic planning, economic and financial modeling, valuation services and regulatory support.

Valuation of Chemical Operations

IIC, Inc. recently completed a comprehensive valuation of a large, multinational company’s chemical operations. We valued the international portfolio of assets, including the chemical assets located in numerous countries. We employed a capitalization of earnings approach, which relied extensively on our experience with international cost of capital issues. Our keen insight into chemical industry market fundamentals on a global scale allowed us to provide our client with accurate and defensible results. IIC, Inc.’s clear and detailed report allowed our client to arrive at a fair settlement prior to incurring exorbitant litigation expenses.

In a separate valuation engagement, IIC, Inc. performed an analysis of the chemical operations of a large integrated petroleum company. We analyzed internal and external financial documents, developed economic and financial valuation models, and applied our industry expertise in forecasting future market conditions which influence the value of chemical assets. A key aspect of the analysis involved research and analysis of comparable chemical companies. We performed an in-depth functional analysis of potential comparables and compiled extensive financial data through a comprehensive search of financial databases and stock filings. As with all our projects, we employed rigorous quality control standards to ensure data accuracy. We provided our client with a detailed report that explained complex concepts and numerical results in a clear and concise manner that was easy to understand.

Transfer Pricing Issues for Chemical Companies

The current regulatory environment poses several challenges for chemical companies. Environmental constraints and the impact of tax regimes are two of the most significant issues facing the chemical industry. IIC, Inc. recently completed a consulting project dealing with international transfer pricing issues. Given our extensive experience with Section 482 of the Internal Revenue Code, we provided our client with an in-depth analysis of the appropriate royalty rates for the licensing of intellectual property from a domestic corporation to a foreign subsidiary. Our analysis included a comprehensive overview of the specific chemical industry market segment where the intellectual property was utilized.