Aug 18, 2021 | Blog, The Valuation Report
Forward-looking valuation of small businesses has always been a challenge. Few comparable transactions exist, in-house financial information may be scant, and projections are complicated for owners—even in the best of times. The pandemic magnified these difficulties....
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...
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...
Jan 26, 2021 | Blog, The Valuation Report
Every few years, the same intriguing trade secret rumors circulate the internet. “The formula for Coca-Cola has been discovered!” “The ingredients for KFC’s 11 herbs and spices have been revealed!” “Doubletree’s chocolate chip cookie recipe has been disclosed!”...
