Non‐operating assets confound me, because every time I think I’ve got some on the balance sheet, I find a way to talk myself out of classifying them as non‐operating. For example, a company building, which is owned by the subject … Continue reading
This is a really interesting topic to me. It seems like folks are all over the place on this one. I just finished reading an article called, “Modeling Illiquidity Premiums for Alternative Investments” by Renalto Staub in the CFA Institute’s … Continue reading
Early in my career as an investment banking analyst I was introduced to financial modeling for M&A transactions. Building standalone financial models with integrated financial statements, debt schedules, capital expenditure and depreciation schedules, revenue and expense detail, etc. Combining these … Continue reading
Recently we were engaged by a hedge fund to assess the value of various intangible assets of a firm on a liquidation basis. The company intended to use the proceeds of the loan to acquire another business to broaden its … Continue reading
We’ve worked with a few companies recently that are OTC. Oftentimes private companies will execute reverse mergers into public shells with the hopes of better access to the capital markets. In the “mezzanine” stage, where they’re too nascent to be … Continue reading
As an appraiser, I am always making analogies to the frameworks and methodologies I’m exposed to in the profession. I suppose it’s one of the reasons I really like the valuation niche. There are so many areas of life where … Continue reading
I had two interesting engagements recently wherein I was asked to value variable executive equity compensation. One of the projects was for tax/fair market value purposes, and the other was for financial reporting, to determine the contingent liability associated with … Continue reading
I’ve always had a romantic relationship with ESOPs. I love the idea of the company’s employees being shareholders. The various tax advantages that have been extended to the vehicle to encourage that are great too (tax deduction on principal, tax … Continue reading
I’m not sure it’s always this clear, but I’ll throw it on the blog to see if it sticks. I found this comment somewhere, and I like its clarity. From a valuation perspective, equity value depends on enterprise value, not … Continue reading
I got this question from an attorney a couple of weeks ago, I had to look it up, so I figured there might be some other weary practitioner that’s unclear. In any case, here’s some juice to support the notion … Continue reading