Match industry forecasts to valuation date

BVWireIssue #219-3
December 16, 2020

industry analysis
economic forecast, industry analysis, valuation report, COVID-19

At a number of conference sessions we’ve attended recently, speakers say that they are spending a great deal more time on the industry and economic analyses for their valuations. Also, with things changing so rapidly these days, an industry forecast prepared on a date that is different from the valuation date may be less relevant. Of course, every industry is different. One industry going through rapid changes is the restaurant business. We just took a look at the First Research report (updated on Dec. 7, 2020) for the restaurant industry, which points out the special struggles that eateries are facing as we move into the winter. In certain areas, restaurants are temporarily closing for the winter because outdoor dining is no longer feasible in cold weather. Others are remaining open and using certain strategies to buoy their operations. Not surprisingly, the report gives the industry a “low” growth rating. The report also includes trends, benchmark data, and questions to ask management. In addition to industry profiles, First Research also provides state profiles and Canadian province profiles for thousands of segments.
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