And Runaway Valuations In a discounted cash flow analysis, a large portion of a firm’s value is typically attributed to the terminal value, i.e., the value beyond the projection period. Valuation presentations often show or discuss what happens to the firm’s value if the perpetuity growth rate (PGR) is changed. In this sensitivity analysis, it is common to see wild swings in valuations because the terminal value changes a lot when one changes the PGR for a given level of weighted average cost of capital (WACC). However, this large variation in terminal values could be a result of not linking…
-
-
What Forensic Accountants Need to Avoid Doing What do forensic accountants need to know when performing a business interruption loss engagement? What are some of the common errors and pitfalls that forensic accountants need to avoid? In this article, the author will answer these questions as well as walk through the process of performing a business interruption loss engagement. [su_pullquote align=”right”]Resources: Business Interruptions and Lost Profits [/su_pullquote] When natural disasters or damages occur and business operations are interrupted, forensic accountants are an invaluable tool for both the insured and the insurance companies. Forensic accountants are engaged to calculate a fair…
-
Observations and Delaware Fair Value (Part II of II) This is the second of a two-part article, read Part I here, that focuses on empirical evidence supporting the size premium adjustment, observations regarding the CRSP size premium 10th decile category, liquidity issues that may account for the size premium, and certain Delaware Chancery Court decisions involving a size premium discussion. In this second part, the author focuses on the latter two points. These are discussed since in the past few years there have been numerous fair value business valuation related disputes decided by the Delaware Court of Chancery that involved…
-
A Risk Reduction Strategy? Being self-employed is no longer code for “recently laid-off” or “fired”. The self-employed professional diversifies risk. It is a privilege for the talented, but it also requires motivation and continual sharpening of the saw. How ready are you to assess your talents? Level of risk tolerance? As a practice development coach for our industry, I get a ton of questions asking what it’s like to be a sole practitioner and why did I choose to be one. Well, I’ve been practicing on my own since July 2000, so I have some insight. But I want…
-
Observations and Delaware Fair Value (Part I of II) This is a two-part article that focuses on empirical evidence supporting the size premium adjustment, observations regarding the CRSP size premium 10th decile category, liquidity issues that may account for the size premium, and certain Delaware Chancery Court decisions involving a size premium discussion. These are discussed since in the past few years there have been numerous fair value business valuation related disputes decided by the Delaware Court of Chancery that involved certain cost of equity capital postulates. Valuation analysts should be aware of potential issues related to incorporating a size…
-
For Finding Guest Blogging Opportunities Have you considered an article you have written on another website, posting a guest blog? What are the benefits? How hard is it to get or become a guest blogger? In this article, the author discusses the opportunities of posting a guest blog. [su_pullquote align=”right”]Resources: Get Published in QuickRead[/su_pullquote] Have you ever considered writing a guest blog to reach new audiences? If you already post blogs on your own site, guest blogging may be much easier than you would think. More importantly, doing so is also a great way to expand your audience, promote your thought…
-
Research into recruitment experiences has underlined the potential damage caused to brands by negative processes. These might include failure to provide feedback and to acknowledge receipt of the application. To read the full article in Personnel Today, click: Poor Recruitment Processes Can Damage Brands.
-
Buyouts engineered by optimistic CEOs and pessimistic CFOs have the best odds of success. As the U.S.-China trade war drags on, sirens are going off on sales, earnings, and growth forecasts around the world. But one aspect of corporate activity is bucking the gloom: mergers and acquisitions (M&As). Global appetite for M&As is at a 10-year peak, fueled by years of sustained economic growth and low cost of debt. To read the full article in Instead Knowledge, click: The Best CEO-CFO Team for M&As.
-
CPA firms are turning to nonaccounting graduates in increasing numbers, a new AICPA survey reveals. Nonaccounting graduates constituted 31% of all new graduate hires in public accounting in 2018, an increase of 11 percentage points over 2016, according to the 2019 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits. To read the full article in Journal of Accountancy, click: Report Finds Shift in Accounting Firm Hiring.