Understanding the value of their company
is a topic of critical importance to business owners and executives. However, today’s constantly changing economic climate has made determining and understanding the value of a business more difficult than ever. The roundtable allowed a free exchange of ideas amongst the participants, rather than a traditional lecture or presentation. This enabled the participants to guide the conversation to the topics that were most important to them. A few of the issues discussed were:
· The effects of the current liquidity crisis on value;
· How to account for rapidly changing economic conditions when valuing a company;
· Standards of value;
· Valuation methodologies;
· Valuing early-stage or high-growth companies;
· Developing discount rates; and
· Applying market multiples.
When our session was over, I remarked how quickly two hours can pass during an engaging conversation. While we weren’t able to cover all of the issues associated with valuation during our roundtable discussion, we were able to address the most relevant ones. Not only did this benefit the participants, but it will allow me to make sure that Schneider Downs
takes extra care to address these critical issues when performing valuations in the future.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.