Kenneth Arlein, CPA, ABV, CVA
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732-635-3218
karlein@jhcohn.com
Functional Expertise
Kenneth Arlein, CPA, ABV, CVA is a partner in the Business Investigation Services Group of J.H. Cohn, where he specializes in business valuations of closely held businesses. He frequently assists clients in due diligence matters concerning valuation, goodwill, and/or intangible asset concerns. Mr. Arlein also provides valuation services in damage analysis and estate and gift tax matters.
Mr. Arlein has more than 20 years of experience in providing business valuation services. He consults with clients about profit improvement, growth opportunities, and increasing the value of their ownership interests. He also advises clients regarding the values of acquired assets, the allocation of the purchase price to those acquired assets, and the impact of allocations on earnings and cash flows. Mr. Arlein’s areas of industry expertise include real estate, retail, manufacturing and distribution, technology, and professional services.
Mr. Arlein has been qualified as an expert witness on valuation matters in the New Jersey courts.
In addition to performing numerous purchase price allocations (SFAS 141), Mr. Arlein has conducted numerous goodwill impairment (SFAS 142) related engagements, and is well versed in the recent updates in the Financial Accounting Standards relating to valuation issues. He regularly provides advice to his clients regarding the interpretation of these complicated pronouncements.
Mr. Arlein is a member of the American Society of Appraisers, the Institute of Business Appraisers, the National Association of Certified Valuation Analysts, the Association of Insolvency and Restructuring Advisors, the American Institute of Certified Public Accountants, and the New Jersey Society of Certified Public Accountants.
Experience Highlights
- J.H. Cohn was engaged to prepare a valuation under Statement of Financial Accounting Standards 142 for a public consumer electronics company. This valuation analysis calculated the fair value of the invested capital and compared it with the book value. Mr. Arlein used the discounted future cash flow method, as well as the market value of the public company, to determine the fair value of the company. Mr. Arlein concluded that the fair value was less than the book value. As a result, the goodwill was impaired. In addition, Mr. Arlein tested non-amortizing trademarks using the relief from royalty method and found that certain trademark values were impaired.
- J.H. Cohn was engaged by a non-public, U.K.-based forensics technology company to allocate, pursuant to Statement of Financial Accounting Standards 141 and 141R, the purchase price paid for a company it acquired. Mr. Arlein analyzed the asset purchase agreement, discussed with management the financial and operational aspects of the acquired business, and concluded that the only intangible assets acquired were customer relationships. Mr. Arlein used the multi-period excess earnings capitalization method to perform the valuation of the customer relationships. The excess of the purchase price over the tangible assets and the customer relationships acquired was deemed to be goodwill. Mr. Arlein’s valuation report was submitted to and approved by the Company’s auditors.
Accreditations
- Certified Public Accountant, New Jersey, 1971
- Accredited Business Valuator, 1998
- Certified Valuation Analyst, 1999
Education
Bachelor of Business Administration, Accounting Specialization, Ohio University, 1968