I have always admired former GE Chairman Jack Welch. He is a master communicator. He uses simple words, phrases and analogies.
When reviewing GE’s businesses, he chose whether to “Fix, Close, or Sell” them. What a beautiful, simple way to frame his decisions!
Fixing is improving performance; increasing cash flow to equity and / or reducing risk. [...]
Lake Forest, CA (Monday, October 26, 2009) – Business appraisal specialist Thomas Kalajian is the first professional in private practice in Southern and Central California to earn the prestigious new senior business appraisal designation, Accredited in Business Appraisal Review (ABAR), awarded by the Institute of Business Appraisers.
The cost of equity capital is the discount rate used to calculate the present value of expected equity cash flow and thus to value equity.
For a publicly traded company, securities analysts project equity cash flow and, based on the current market price, calculate the implied discount rate that equates the current market price and the [...]
By Howard A. Lewis, ABAR, AVA – IBA Executive Director
It’s been said that “too many standards are no standards at all.” In our profession, standards have come to be known as an “alphabet soup,” the “real standards” have been challenged to “stand up” and show themselves, and business appraisers across the country are increasingly concerned with the confusion and potential risks involved in learning, understanding, and applying numerous sets of standards.
I have always believed and opined in assignments that tiered valuation discounts are valid. If a Master LP owns Slave LP interests and we are valuing a limited Master interest, there should be two sets of discounts.
I believe this because to deny one set of discounts denies the validity of the entity, and the same [...]
What kinds of hassles do you encounter when the valuation date is different from the fiscal yearend date? For holding entities like FLPs, it is easy to get net asset value as of the valuation date and proceed from there, and there are not too many difficulties.
But for operating companies, if the valuation date is [...]
Astounding fact: Some 80-90% of privately held businesses placed on market will not sell. In his groundbreaking new book, Toby Tatum, MBA, CBA, reveals why, and gives practical advice on how to negotiate a fair price.
PLANTATION, FLORIDA – October 12, 2009 – The Institute of Business Appraisers (IBA), the oldest professional society devoted solely to [...]
How many valuations have you done that involved situations like these as of the valuation date:
● Client is bidding on big job, but does not know how likely he is to obtain it.
● Client may lose a big customer in financial trouble, but does not know how probable the customer’s survival (ability to pay him) [...]
In a recent case decided by the federal district court (Indiana), the Court excluded a valuation expert citing the failure of his report to meet the requirements of Federal Rule of Civil Procedure 26(a)2(B) and the Daubert tests.
The court also noted that, notwithstanding the expert’s outstanding qualifications, he did not have private company valuation experience. [...]
