How to address cyber risk in a business valuation

BVWireIssue #205-3
October 16, 2019

valuation methods & approaches
risk analysis, company specific risk

According to Inc. Magazine, 60% of successful cyberattacks force the target business to close. This is a material risk that needs to be considered and captured in a business appraisal. Do you put it into company-specific risk for the income approach? Adjust multiples for the market approach? Treat it as a contingent liability? Use option models? How have stock values been impacted due to public-company breaches? All this—and more—will be discussed during ‘Don’t Make Me Call Security!’: How to Consider Data Security in a Business Appraisal, a webinar on October 30. The presenters will be appraiser Mike Blake (Brady Ware & Co.) and cybersecurity expert Charles Hoff (Data Security University).
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