GDP growth at best pace since 2014 per 2Q 2018 Economic Outlook Update
Is the economy about to awaken from its long slumber?
Small biz not keen on growth prospects
Although profitability and borrowing success rates are up for small businesses (less than $5 million in revenue), this has not led to increased expectations for business performance or growth, according to the Q2 2018 Private Capital Access Index (PCA Index) from Pepperdine Graziadio Business School and Dun & Bradstreet.
Book Review: The Cannabis Industry Accounting and Appraisal Guide
Neal Beaton reviews an “indispensable resource” for investors, owners, managers, attorneys, accountants, and valuation analysts alike working with or alongside professionals within the evolving cannabis industry.
Global BVU News and Trends August 2018
Business valuation news from a global perspective.
Storytelling with data
A big seller at the Wiley booth at the NACVA conference in Las Vegas was a book titled Storytelling with Data.
Agita at casual dining chains
A Wall Street Journal article reveals that many larger casual-dining spots are struggling, but many under new management are reinventing themselves in order to compete.
Paper examines cost of capital for banks
A new paper analyzes the cost of capital for banks during the financial crisis and in relation to the Dodd-Frank Act and Graham-Leach-Bliley Act.
Market research for the cannabis industry
Business appraisers who are valuing firms in the cannabis industry have a new resource for market research: The State of Legal Marijuana Markets, which is published by ArcView.
Trade war may shift use of tax cut’s windfall
The extra cash flow companies will see from the Tax Cuts and Jobs Act will affect valuation depending on how the funds will be used.
Valuation of power plants
A paper published in the European Journal of Operational Research examines the valuation of renewable, conventional, and storage power plants.
Global BVU News and Trends July 2018
Business valuation news from a global perspective.
New resource for valuation of cannabiz
The Cannabis Industry Accounting and Appraisal Guide is a new book from Canna Valuation, a firm devoted to the licensed and regulated cannabis industry.
Hints of optimism in the apparel industry
Although e-commerce keeps chipping away at traditional brick-and-mortar retail, “hints of optimism have emerged within the sector,” according to the Duff & Phelps “Quarterly Apparel Report” for spring 2018.
CEOs see moderate growth in U.S. economy
A survey from KPMG finds that, even though CEOs are highly confident about the U.S. economy, only moderate growth is predicted.
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
Grappling with unprecedented change
A report from Deloitte UK’s Economics, Valuation and Modeling practice says that, in an era of unprecedented change, many market participants are grappling with strategic business and valuation-based decisions arising as a result of increased innovation and greater market controversy, uncertainty, and volatility.
LEI points to robust growth throughout 2018
Despite the volatility in the stock markets and the weakness in housing construction metrics, the Leading Economic Index increased 0.6% in February, which marked the fifth consecutive month of gains for the index, according to the latest monthly Economic Outlook Update (February 2018 issue).
Management forecasts receive close scrutiny from courts
In assessing the soundness of valuations, courts in a variety of cases have been paying close attention to the management projections appraisers have used or decided not to use in performing their value analyses. If courts are scrutinizing projections for reliability and plausibility, experts hoping to prevail in the litigation context must do so as well.
AMERICAN SOCIETY OF APPRAISERS: Business Valuation Committee Special Topics Paper #3: The Use of Management's Prospective Financial Information by a Valuation Analyst
According to AICPA Professional Standards: AT Section 301 Financial Forecasts and Projections, “financial forecast is the prospective financial statements that present, to the best of the responsible party's knowledge and belief, an entity's expected financial position, results of operations, and cash flows. A financial forecast is based on the responsible party's assumptions reflecting the conditions it expects to exist and the course of action it expects to take.” In order for a valuation analyst to ...
