Adherence to Development and Reporting Standards in Family Law Litigation When applied correctly, the Market Approach can link value to market evidence and help support a thorough and well-reasoned valuation. However, valuation analysts often struggle with a variety of challenges when applying the Market Approach that include locating and selecting good comparable companies, selecting or calculating various valuation multiples from reported data, and weighting or selecting indications of value derived from various applied multiples. Recently published research from Doron Nissim at the Columbia Business School at Columbia University NY may shed some light on the best measure of operating performance…
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There are clear signs that the “easy” portfolio valuations that have existed in 2013 and 2014 may be coming to an end in 2015. Travis W. Harms who leads Mercer Capital’s Financial Reporting Valuation Group, discusses the expansion in multiples and their role in the favorable equity market returns over the past two years. He also discusses the impact of high-yield credit spreads, the energy sector, and loan covenants on credit valuations. [button color=”blue” link=”http://mercercapital.com/financialreportingblog/if-valuation-were-an-olympic-sport/” target=”_blank” font=”arial” align=”left”]To learn more about equity and credit valuation, click here.[/button] This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted…
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The impact on shareholder value Knowing the value of a business and delivering real value to a client company entails far more than using EBITDA multiples or going along with a rule of thumb to keep the peace. As professionals, valuators must be far more rigorous in their engagements, and focus on delivering value. The obligation to identify, measure, manage, and mitigate the risks are their responsibility. In this candid analysis, Dr. Carl Sheeler shares some insights, based on his 1,000+ engagements, where he has found problems that led to disputes, misalignment of expectations, and company-specific risks that impair value…