Articles

Valuation Insights and Perspectives

goodwill

Goodwill vs. intangible assets: what do they mean for a company’s valuation?

While sometimes described interchangeably, “goodwill” and “intangible assets” are two distinct concepts representing different components of a firm’s value. How they appear on a balance sheet is a different story.
2020

What 2020 reminded us about fundamental valuation principles

Price, value, hindsight, valuing companies on a liquidation basis … 2020 was a banner year for students of business valuation theory.
Farm

Van Boekel – a review of issues in attributing corporate income in Guidelines income determinations

Can bank covenants restrict the availability of corporate income to a payor-spouse? What about corporate funds used to finance an expensive hobby? How should losses, capital dividends, and tax-gross ups be addressed? Van Boekel is a fascinating read which explores these issues and more when determining a spouse's income under the Federal Child Support Guidelines.
Airline lounge
Pencil and equations

How valuation formulas in shareholders’ agreements can go wrong

Valuation formulas in shareholders' agreements can end up resulting in increased acrimony, higher legal fees, and potentially unfair outcomes for shareholders in disputes.
Analyst looking at screen
Couple in a therapy session

COVID-19: the struggling business fuels the already struggling marriage

What happens when a business and a marriage fall apart at the same time during COVID? There are valuation implications to consider in a separation and divorce.
Paper with pie charts, a tablet, and a calculator on a desk

The common denominator of business valuation theory and fighting COVID-19

We have models, but they’re only as good as the assumptions that the models use.
Balance sheets

GE’s Alstom acquisition: the case of purchase price accounting gone wild

Over time, GE gradually allocated more value on its balance sheet to goodwill. Then it wrote the goodwill off. We examine an interesting example of purchase price accounting – so interesting that the SEC and Department of Justice decided to look into it.
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The unveiling of 'Altaba'

Yahoo sold its core business to Verizon. So what's left?