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No two valuation assignments are the same, and we love the challenge of variety. Grounded in more than 25 years of experience, Quist brings a holistic approach to our business. Bringing the A Team, every time. Our staff of analysts has a wide breadth of experience – ranging from investment banking to asset management, corporate finance and financial advising.
What Every Early Stage Company Should Know About Common Stock Valuations
Prior to 2004, it was common practice to set the fair market value of common stock for purposes of setting option exercise prices by loosely estimating an appropriate discount from the price of recently issued preferred stock. The discount to the most recent preferred stock price was generally based on the
Elements of a Plan to Sell to Insiders
Today we discuss the essential elements of a plan owners use to transfer a business to insiders (with the help of skilled advisors) that keeps the owner in control until he or she is paid the sale price. If you suspect that the children, key employees or co-owners you would pick
Value Drivers
Let’s talk about transferable value: the value buyers look for and pay for when making acquisitions. Value drivers increase transferable value if they contribute to cash flow both during and after the original owner’s tenure. Determining how to increase transferable value is the owner’s job. But once owners and their advisors determine
Retiring Boomers: The Good, the Bad, and the Opportunities
The Good It has been discussed for a decade now; the huge bubble of people born after WWII until the middle of the 60’s is quickly approaching retirement. You’ve heard the numbers; Over 78 million people closing in on retirement in the next 10 to 15 years. Boomers own over 65%
Do ESG Programs Create Value For Your Company?
The market recognizes that companies with high ratings for environmental, social and governance (ESG) factors are lower risk than other companies and the market rewards them accordingly. In the hierarchy of factors that count with investors and markets in general, governance is ranked highest and then environment, followed closely by social
Three Factors Driving Value (and Risk) in Craft Breweries
The Craft Beer industry is one of the fastest growing alcoholic beverage segments in the United States. According to IBISWorld the industry has experienced annualized revenue growth of 19.0% in the five years leading up to 2014, reaching an estimated $4.2 billion in 2014. Industry market research predicts that over the next
Industry Update: IRS publishes an internal document that reveals the agency’s most current thinking on the valuation of S Corps
The IRS S corp Job Aid says in the introductory section: [A]bsent a compelling showing that unrelated parties dealing at arm’s-length would reduce the projected cash flows by a hypothetical entity level tax, no entity level tax should be applied in determining the cash flows of an electing S corporation. In
“Under the Hood” of Complex Securities
A “Complex Security” can refer to a number of different financial securities including: 1) preferred stock; 2) convertible debt; 3) options; and 4) warrants. What makes one security more complex over the other? Simply put, it is the number of unknown variables or conditions that exist that drive the behavior of
Common Pitfalls in Management Projections
For an operating company, the income approach often provides the best indication of value to rely upon, because it reflects the cash flow expectations specific to the company. The income approach, specifically a discounted cash flow analysis (“DCF”), captures the value of a company’s future expectancy by discounting a company’s projected
The Impact of Rights and Preferences on Late Stage Funding
No one will argue that a transaction in a company’s own stock is the best indication of value – provided, of course, that the transaction occurred among willing and able buyers and sellers, neither acting under compulsion and both having reasonable knowledge of relevant facts. In fact, it is typical for
Understanding Advantages of Alternative Valuation Methods for Holding Companies
When valuing interests in holding companies, appraisers typically incorporate the asset-based approach. The asset-based approach considers the value of the subject company’s assets and liabilities in order to arrive at the value of equity. The net asset value (“NAV”) method is one method under the asset-based approach where the appraiser determines
How Brand Influences Company Valuation
I was recently asked by a prospective client to discuss how Quist Valuation thinks about brand in a valuation engagement: What are the dimensions of brand value? How do we consider the stages of brand development? What approaches are used to measure brand value? A company’s “brand” encompasses a variety of
Value Impact from Marketing and Sales Excellence
Companies with better marketing and sales capabilities grow faster than their peers. Revenue growth at companies with more advanced marketing and sales capabilities tends to be 30 percent greater than the average company within their sector. That means in an industry growing at 4.0 percent annually, a company in the top
Business Succession Planning for Private Companies
Creating Exit Options Comes from Early Planning and Creating Value Fueled by the roughly eight million Baby Boomers moving toward retirement, the next 10 to 15 years is expected to bring substantial transfers of wealth through both the outright sale of businesses as well as the transition of business ownership to
Governance, Strategy, KPIs and Valuation
Strategy and Risk Management Top the Priority List for Board Focus With a volatile economic and geopolitical landscape, the accelerating speed of technology change, and competitive disruption, governance is more critical than ever to success. The spotlight on corporate directors continues to intensify as regulators and investors scrutinize the board’s contribution