Don’t Discount the Key Person Discount By: James Horkey In the fourth quarter of 2021, CEO resignations were up 16% over the prior year, according to executive outplacement firm Challenger, Gray & Christmas. Recent and announced high profile departures […]
When Subsequent Events Count By: James Horkey The value of a business interest is valid as of a specific date. The effective date is a critical cutoff point because events that occur after that date generally are […]
What Factors into the Cost of Capital? By: James Horkey Valuation experts often use discounted cash flow (DCF) techniques to determine the value of a business or estimate economic losses. A critical input in a DCF model is the cost […]
Marketability Discounts on Controlling Interests By: James Horkey In a business valuation context, the term “marketability” refers to the ability to quickly convert property to cash at minimal cost. While publicly traded stocks are readily marketable, interests in […]
To Tax Affect or Not to Tax Affect? A Key Question when Valuing a Pass-Through Business By: James Horkey Most U.S. businesses operate as so-called “pass-through” entities, including partnerships, limited liability companies (LLCs) and S corporations. For decades, the IRS and valuation professionals have been at odds over how […]
Six Steps to Prepare Your Business for a Sale By: James Horkey The COVID-19 pandemic has put unprecedented stress on private business owners, and some are now considering selling their businesses. Before putting your business on the market, it’s important to prepare […]