By Harold G. Martin, Jr., CPA/ABV/CFF, ASA, CFE, Director, Valuation & Forensic Services
Harold Martin shares his business valuation insights in Financial Valuation and Litigation Expert
The COVID-19 pandemic has significantly impacted local, state, and national economic and industry conditions. In addition, government regulations enacted in response to the pandemic such as lockdowns and stay-at-home orders have also had an impact. As a consequence of these events, the values of closely held businesses in many types of industries have been materially affected. The June/July 2020 edition of Financial Valuation and Litigation Expert includes an article by Harold Martin, Valuation and Forensic Services Partner, summarizing issues to consider when valuing a closely held business post-COVID-19.
“It’s Like Déjà VU All Over Again”
Valuing a Business in the Post-COVID-19 Pandemic Economy
“How do we value a business post COVID-19? How is it possible to develop credible financial forecasts given the uncertainties relating to the impact of the pandemic on the economy and selected industries, as well as the potential depth and duration of the resulting economic recession? These concerns are particularly vexing to many young valuation professionals who have seen a 10-year bull market and have never experienced an economic recession. However, those of you with gray hair realize that we’ve been through periods of uncertainty before, including the 2008-2009 financial crisis, the 2000 Dotcom crash, as well as other similar events…”
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VALUING A BUSINESS IN THE POST COVID-19 PANDEMIC ECONOMY
About the Author
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.