ECS' valuation was used for both tax and financial statement purposes. State Tax Analyses State tax liability is also often affected by the transfer prices charged among operations located in different states. All the tools discussed above can be used in state tax analyses as well. ECS collected and evaluated a set of third party licenses that was used to determine the royalty rate that an intellectual property holding company located in a specific state could expect from operating companies in other states. This arrangement has allowed ECS' client to realize substantial savings in state taxes.
All intangibles are unique, and some transactions involving intangibles are also unique.
ECS provided the analysis to value the intangibles developed in establishing a new television network, at the point at which new partners were added to the startup venture. ECS' analysis required an examination of the cable television market, and was used to determine the capital gains of the initial investors in this project. ECS' analysis was used by the IRS to evaluate the analyses prepared by several taxpayers.