• QuickRead Top Story - Valuation/Appraisal

    Net Working Capital: A Key Component Used in Business Valuation

    September 3, 2025

    For valuation purposes, net working capital involves a more comprehensive analysis than the straightforward traditional accounting definition of current assets minus current liabilities. This article examines the concept of net working capital and highlights its significance in business valuation. Net working capital represents a vital aspect of business valuation, as it influences a company’s enterprise value through projected cash flows, as well as its equity value based on excess or deficient net working capital at the valuation date. For valuation purposes, net working capital involves a more comprehensive analysis than the straightforward traditional accounting definition of current assets minus current…

  • Practice Management - QuickRead Top Story

    How Do You Recover

    September 9, 2020

    the Cost of Your Reference Library? Now, there is an abundance of print and online resources that have greatly improved both our report preparation efficiency and effectiveness. Simply put, we have access to better information and are more productive in our engagements. Certainly, clients benefit from that increased access and productivity, but it comes at our ever-growing out-of-pocket library expense. So how do we recover that library cost? In this article, the author describes four practices used by his colleagues. Many of us are looking at the costs of running our practices and wondering how to run a leaner, cleaner…

  • QuickRead Top Story - Valuation/Appraisal

    The Valuation Impact of Using the Wrong Leverage Ratio to Unlever Betas

    April 29, 2020

    Recognize and Avoid Substantial Valuation Differentials One of the critical inputs in the capital asset pricing model (CAPM) is beta. In practice, there are two typical ways beta is estimated. Making an incorrect assumption could lead to substantial valuation differentials of over 10% in many cases and can lead to valuation differentials of over 50% in some instances. In addition, our analysis indicates that we would not be able to tell the direction and magnitude of the valuation differential in advance unless the correct calculation is performed. One of the critical inputs in the capital asset pricing model (CAPM) is…

  • QuickRead Top Story - Valuation/Appraisal

    Estimating Nonprofit Corporation

    February 12, 2020

    Asset Values (Part III of III) This is the third of a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty revenue earned by licensing intellectual property, sales of assets, and purchases of assets. If the subject transaction is between a nonprofit and a related party, the transaction is required to be a fair market value transaction. This series provides an example of certain…

  • QuickRead Top Story - Valuation/Appraisal

    Estimating Nonprofit

    February 5, 2020

    Asset Values (Part II of III) This is the second of a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty revenue earned by licensing intellectual property, sales of assets, and purchases of assets. If the subject transaction is between a nonprofit and a related party, the transaction is required to be a fair market value transaction. This series provides an example of certain…

  • QuickRead Top Story - Valuation/Appraisal

    Estimating Nonprofit Corporation

    January 29, 2020

    Asset Values (Part I of III) This is a three-part article that focuses on valuing nonprofit corporation assets. Valuation analysts are commonly engaged to provide fair market value guidance related to nonprofit business transactions. Nonprofit businesses are often involved in arms-length transactions. Common transactions include royalty payments for the use of intellectual property, royalty revenue earned by licensing intellectual property, sales of assets, and purchases of assets. If the subject transaction is between a nonprofit and a related party, the transaction is required to be a fair market value transaction. This series provides an example of certain steps and procedures…

  • Valuation/Appraisal

    Damodaran Data Page Available

    May 7, 2014

    Professor, Aswath Damodaran, of the NYU Stern School of Business has released his 2014 Data Page online. Updated annually and exhaustively researched, the data page offers in-depth information on 41,000 companies in 131 worldwide markets, including measures of operation, leverage, pricing, equity risk premiums and country risk. One of the major changes to this year’s data page was the switch from Value Line to Morningstar, Bloomberg and Capital IQ for all U.S. firms. You can review the data page at the link below. [button color=”blue” link=”http://people.stern.nyu.edu/adamodar/New_Home_Page/data.html” target=”_blank” font=”arial” align=”left”]Read Full Article[/button]