A business valuation, also referred to as a business appraisal, is an analysis designed to determine the worth of a company or operating unit. Business valuations can be used for a variety of strategic (e.g. determining value for sale/merger, benchmarking growth ) and formal (e.g. estate and gift planning, executive compensation planning) planning purposes.
Depending on its purpose, a business valuation can present a range of likely values or deliver a more precise conclusion of value. There are various approaches and premises that can be employed when performing a valuation depending on underlying objective. In any instance, a full understanding of a business, how it operates and the risk associated with it is needed to determine the economic value of a business.
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With the recent volatility in the public markets and the macroeconomic backdrop changing rapidly, we thought we would quickly revisit the resulting implications to the M&A environment.
As widely documented, the last several years have represented a vibrant deal making setting, notwithstanding the impact of the Covid-19. Similar to real estate, it has been a seller’s market with a great deal of capital chasing quality assets. 2022 has seen a confluence of new factors, including rising interest rates, tight labor, supply chain challenges and the war in Ukraine, that have shifted confidence levels and have introduced new operational and financial challenges into the fray. That said, strategic consolidators and private equity alike continue to look for investment opportunities capable of supporting the strategic imperative to “win” over the long-term.
Spring is in the Air . . .
Spring has arrived along with the warmer weather. Spring is the perfect time to make that check list of To Do’s. Below is a list of reminders for small business owners’. It’s the little things we sometimes miss that can have an impact on our businesses. We hope that you find these reminders helpful.
60/40 is a financial term Wealth Managers use referring to a portfolio mix, or percentage of equities (stocks) versus your fixed income (bonds) investments. The mix of 60/40 has been a standard (and popular) allocation that seeks to diversify investment risk across stocks (growth) and bonds (income).
The 60/40 blend can be modified based on the investor’s stage of life, retirement/income needs and risk tolerance. More recently, the classic 60/40 portfolio blend is being re-thought due to higher equity valuations and the low interest rate environment versus what has recently been a period of increased inflation rates.
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