2019-133: Valuation’s Dirty Little Secrets
**Webinar 132: Live Broadcast Date: July 16, 2019 **
VPS StraightTalk Webinar Series- Archive 133: Valuation’s Dirty Little Secrets with Jim Hitchner, CPA/ABV/CFF, ASA NSA, MBA
What are valuation dirty little secrets? They are areas of business valuation that are at best troublesome, or at worst dangerous. Some of us know about these areas, but choose to ignore them; others simply don’t know they exist. That is the purpose of this webinar, to explain 20 areas of valuation that we should all know about and to shed some light on this dark virtual room of secrets.
- Misapplication of cost of capital data
- Capitalized cash flow method: mid-year or end-of-year
- Reports and hidden agendas
- Non-corroborating valuation methods
- More on the impact of distributable cash flow that is not distributed — detailed model and proofs
- S-corp models under TCJA are turned upside down
- The terminal year assumptions of a DCF are often wrong
- Client-provided projections are often denied proper due diligence
- Long-term growth rates may be too low
- The direct-to-equity method and debt
- Improper weighting of earnings
- Why weighting historical earnings is a risk adjustment
- Improper value reconciliation
- Control premium problems and why they still linger
- Size premium data and lack of liquidity issues
- Determining excess and/or deficient working capital
- The misuse of the so-called “optimal capital structure”
- Unlevering and relevering betas
- DLOMs and investment yields
- Marketing and websites
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