Apr 30, 2021 | Blog, Closely Held Businesses, Exit Planning, The Valuation Report
While preparing your succession or estate plan, you should value your family business both internally and externally because your company has multiple values depending on the valuation standard used. The different results can help you determine whether to keep the...
Apr 29, 2021 | Blog, The Valuation Report
For decades, valuation analysts have incorporated a “size premium” when calculating the cost of capital in their valuation engagements. A paper by Rolf Banz first documented the size effect in a 1981. Simply put, the theory asserts smaller companies have greater risks...
Apr 29, 2021 | Blog, The Valuation Report
While the pandemic has stymied many businesses, important valuation litigation has continued to make its way through the courts. The following provides an overview of a few cases of particular interest to the valuation community and the lessons we can learn from the...
Apr 29, 2021 | Audit, Blog, The Valuation Report
When valuation analysts dig into the numbers, they often rely on financial information provided by the target company. As the engagement proceeds, sometimes the numbers do not seem quite right. Maybe expenses seem too high or owner’s compensation seems too low....
Jan 27, 2021 | Blog, The Valuation Report
In most valuation disputes, each side hires its own valuation expert. Naturally, the two experts often disagree about the value of the assets in question. In court, the experts present their opinions, the attorneys argue the merits of each valuation, and the judge or...
Jan 26, 2021 | Blog, The Valuation Report
When it comes to valuations, CPAs must follow the guidelines of The American Institute of Certified Public Accountants (AICPA), specifically the AICPA’s Statement of Standards for Valuation Services No. 1 (SSVS). SSVS describes the two types of valuation engagements...
