Feb 26, 2024 | Blog, The Valuation Report
One of the most important factors in valuing a business is the quality of earnings, or QoE. In other words, are the company’s earnings sustainable and predictable over a period of time, and are past earnings a reasonable representation of future earnings? QoE impacts...
Feb 22, 2024 | Blog, The Valuation Report
One recent trend in business valuations is a move toward neutral valuations. Hired jointly by both parties, a neutral valuator will investigate the relevant facts, perform a business valuation, and produce a neutral appraisal report with no bias toward either party....
Nov 3, 2023 | Blog, The Valuation Report
It is not uncommon for private company M&A deals to include an earnout. This is a risk-allocation mechanism whereby a portion of the purchase price is deferred and is based on the performance of the acquired business over a specified period. The purchase agreement...
Nov 3, 2023 | Blog, The Valuation Report
In a recent case, the Tax Court upheld the idea that receipt of a partnership’s “profits interest” is a non-taxable event as detailed in Revenue Procedure 93-27. This case provides guidance on the treatment of the receipt of a profits interest. A “profits interest”...
Nov 3, 2023 | Blog, The Valuation Report
The value of global merger and acquisition (M&A) deals was lower in the second quarter of this year even as the number of announced or completed deals flirted with near-record highs, according to the PitchBook Global M&A Report for the second quarter of...
May 22, 2023 | Blog, Business Valuation, The Valuation Report
Rising inflation and interest rates can impact business valuations through their effects on discounted cash flow and the cost of capital. Understanding their impact will be crucial to accurate business valuations in the current environment. Inflation and Earnings When...
