Appraisal reports should discuss the implications of the underlying economic, industry, and company analyses for the valuation of the subject business and interest. If we do not do this, these sections appear to float untethered to the valuation analysis, and may be shown to conflict with our financial forecasts and / or cost of capital [...]
Value is a forward-looking proposition based on the Principle of Expected Benefits. When we use the Income Approach, benefits are measured by cash flow to equity or some other measure.
When companies are undergoing change due to external factors like a recession or internal ones like innovation, it can be impossible as of the valuation date [...]
Most of the time, when we receive inquiries about our services from gatekeepers (attorneys, accountants and other professionals who refer business to us), the caller gives us background on the purpose and use of the appraisal. This, plus a few more questions on our part, lets us establish the engagement parameters (standard and premise of [...]
In Ohio, my home state, the law is that marital assets are valued as of the separation date. Subsequent value changes are not part of the marital estate value.
Given that, what’s wrong with the following Income Approach valuation for divorce?
The appraiser estimated cash flow to equity by weighting five years’ prior cash flows 10%-10%-10%-35%-35%. The [...]
