Articles & Publications

An initial step in any business valuation engagement tasks the valuator to identify the valuation approach and methodology. One of the most commonly used valuation methods is the discounted cash flow (“DCF”) method of the income approach. The DCF. Read More >>

Notwithstanding purely theoretical arguments that investors should be indifferent to capital structure, in practice the relative combination of debt and equity capital utilized in calculating the weighted average cost of capital (WACC) can have a material impact on a. Read More >>

as seen in Crain’s Cleveland Business, Jan. 21, 2019 In a business acquisition, the buyer should receive sufficient net working capital (“NWC”) to operate the business in its ordinary course. The assessment and negotiation of NWC is important; however,. Read More >>

Improper revenue recognition has long accounted for a substantial portion of financial statement fraud. By simply recording revenue early, a dishonest business seller trying to inflate the sale price or an employee under pressure to meet financial benchmarks can. Read More >>

The initial offer a business buyer makes to a seller is rarely set in stone. In most cases, the two parties must negotiate purchase-price adjustments (PPAs) — differences between the originally stated and the final price at closing. Why. Read More >>

Most business owners spend a lifetime building their business. When it comes to succession, business owners need to weigh the benefits and detriments of a variety of potential exit strategies. This could involve selling to either a strategic or. Read More >>

Sometimes an M&A deal ends up not only in a different place from where it started but in a different guise. Whether it’s due to shifting market conditions or other unforeseen factors, a buyer’s acquisition strategy may change during. Read More >>

Many have heard that if you’re in the fill-in-the-blank industry, your business should sell for a fill-in-the-blank number times fill-in-the-blank measure. These types of guidelines are widely discussed and generally accepted. There’s only one problem: they are rarely correct.. Read More >>

  Business sellers are always well advised to highlight their strengths when marketing their company to prospective buyers — such as experienced management, distinctive products or a strong brand. However, one potential key value driver that’s often overlooked is. Read More >>

What is a business worth? It depends on a lot of things. A better question is: What is a business worth to whom? Every valuation has a purpose, and different purposes require different standards of value. For example, if. Read More >>