Improving your risk analysis
Samuel Weaver recommends taking advantage of more of the risk analysis tools available to financial analysts and senior management…even if they’re simply little-used functions in Excel.
For instance, while speaking to a room of over 200 NACVA members today in San Diego, Weaver asked how many routinely use senstitivity analysis in their DCF’s. About 15% of [...]
What do we really mean when we say we’ve accounted for risk?
Sergio Focardi, author of the CFA Institute’s Investment Management after the Global Financial Crisis, recognizes that valuation needs to account fully for risks…certainly from “hidden sources of extreme risk,” particularly discounts for lack of liquidity. “There are huge potential losses” in asset value “when positions need to be unwound prematurely.”
Focardi notes how the impact of [...]
New ways to commercialize your intellectual property require new management and audit skills
Businessvaluation.com is attending AUTM’s annual conference in Las Vegas, where we’ve noted Mike Moberly’s February 18 blog post.
Moberly believes the models for IP development are changing, and license agreements are getting ever more complex. What factors will affect IP value from early to later stage development? As attendees here agree, it’s all about risk… identifying [...]
What are the key issues for family owned businesses in 2011?
The PWC Family Business Survey 2010/11 indicates family business owners are exhibiting “post-crisis wariness” and are “waiting for greater market certainty” before implementing new business plans. Nevertheless, the survey shows family businesses are poised for growth.
The top 5 areas family businesses plan to invest in to improve productivity and competitiveness are:
1. IT infrastructure
2. HR/training
3. Sales [...]
Estate transfer filings for relatives who died this year require special treatment
There is a new estate property transfer procedure for decedents who died in 2010, “Generally, for decedents who died in 2010, the transferee’s basis in the acquired property is the lessor of the decedent’s basis in the property or the fair market value of the property on the date of death,” says Robert F. Reilly [...]
Large companies don’t want to disclose litigation contingencies to investors
businessvaluaton.com is following the story of the August 18th letter signed by a host of Association of Corporate Counsel’s leading members. ACC and many of their members believe that the proposed disclosure requirements about impending risks from litigation will alert the tort bar to insurance and other funds that can be pursued–delaying settlements and counterproductively inducing [...]
Key elements in prenuptual agreements to protect your company
A quick analysis today on Inc.com summarizes the following key elements in any pre-marital agreement to keep an existing business as separate property (with the note that states treat separate property differently):
The agreement must be in writing (No oral prenups)
It must be executed voluntarily and without coercion (having your fiancé sign a prenup the day [...]
Facing commercial litigation? Tell your lawyer about the new business courts
“Even commercial lawyers don’t know that there are now business courts specifically designed to handle complex litigation,” the Honorable Ben Tennille (North Carolina) observed at last weeks’ spring meeting of the ABA Business Law Section in Denver, Colorado. As Chief Special Superior Court Judge for Complex Business Cases, Tennille also reports that this trend is [...]
Are you overleveraged now? What is it costing you?
Here’s a really helpful thought from the ClarityBV Blog:
One of the most common ways to measure leverage is the debt to equity ratio. However, in recent years many tools that are more sophisticated have been developed. One of the most popular of the recent tools is the Altman Z-Score, a formula for predicting bankruptcy.
You might be [...]
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