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Valuation Updates: When and How
Yesterday we participated in a Fair Value forum with our friends and colleagues at Frank Rimerman, Grant Thornton, Trenwith, Cogent, FSCG and Perisho Tombor. Among other issues, we discussed the common concerns of our clients relating to 409A/123R valuation practices. Our primary concern was how best to educate our clients...
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This just about sums it up
There's plenty of confusion out there. But it's starting to get easier as the various constituencies are absorbing industry best practices. It used to take me all of an hour to describe how the industry has been turned on its head by Fair Value accounting, and (more importantly) what to...
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Your projections matter. Now.
Here’s a couple of valuation truisms every CFO should know. Valuations are often highly reliant on the forward-looking projections of the client, Valuation reports are undergoing scrutiny in the financial reporting realm as never before. The same will likely be said about the tax realm when the IRS finally takes...
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Empirics and Analytics
Data, reason and logic: the lodestars of at least one Silicon Valley CEO. So it should be with a responsible valuation practitioner. I’ll stop and mention for the record that we at Arcstone have no illusions about our place in the world. Cypress Semiconductor builds things that do stuff, which...
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Poisoning the Well
Yesterday I received an email from a client with whom we enjoyed working in 2006. (In point of fact, we enjoy working with all our clients, and at least in part that’s why we love our jobs so much.) Apparently it was time to get a fresh valuation. Occasionally I...
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Dual Purpose is de rigueur
Occasionally, we get asked to opine on the state of our industry and prevailing best practices. We’re in a fairly good position to speak to the issues, being at the crossroads of compliance as we are. For while our clients are a self-selecting group, purposefully offloading 409A-related risk, we have...
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Hey, this price is too low!
We issued a Gold Standard (dual-purpose) valuation report recently to a management team that we really like to work with, and got back a bit of a surprise. “Hey,” they said, “this option price is lower than the last report you issued. We’ve made progress – what gives?” Actually, this...
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A Must-Read presentation
Business Valuation Resources produced a panel relating primarily to 409A compliance, generally addressed to valuation practitioners. We enjoyed their perspective so much that we would put it on our recommended reading list for all. The guys at Grant Thornton had a great perspective that we’ve seen echoed by many in...
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