colorpageadmin, Author at Advent Valuation Advisors

Lawsuit Turns on Credibility of Valuations

colorpageadmin — Mon, 05 Oct 2020 15:17:10 +0000

What makes the difference between your company being valued at $30 million or $6 million? Sometimes, it comes down to which valuation expert’s report the judge finds more credible. That’s what the owners of Kraus USA, Inc., a Long Island business selling fine plumbing fixtures, learned earlier this year. Sergio Magarik sued his co-owners, Michael […]

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COVID Poses Challenges in Business Valuation

colorpageadmin — Wed, 02 Sep 2020 16:50:36 +0000

Business valuation is a prophecy of the future. That is, investors typically value a business based on its ability to generate future cash flow. However, with so many uncertainties in the current marketplace, forecasting expected cash flow can be challenging. Income Approach Under the income approach, the value of a business interest is a function […]

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First Round Goes to Insurers in COVID-19 Court Fight

colorpageadmin — Thu, 30 Jul 2020 14:03:15 +0000

An insurer scored a significant win in what is believed to be the first court decision involving a COVID-19-related business interruption claim. On July 1, 2020, 30th Circuit Judge Joyce Draganchuk in Ingham County, Michigan, dismissed a lawsuit by the owner of two restaurants in Lansing Michigan, siding with the insurer’s decision to deny a […]

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Valuations in Divorce Cases Can be Tricky

colorpageadmin — Tue, 23 Jun 2020 16:33:01 +0000

The South Carolina State Supreme Court weighed in recently on the long-simmering tension between recognized standards of business valuation and the goal of equity in dividing marital assets in divorce proceedings. The decision In Clark v Clark (Appellate Case No. 2019-000442), addresses the division of marital assets, specifically the valuation of a minority interest in […]

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Changes in Bankuptcy Law a Lifeline for Struggling Businesses

colorpageadmin — Tue, 16 Jun 2020 15:55:14 +0000

Recent changes to the bankruptcy code could help struggling busineses survive the pandemic.

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AICPA Issues FAQs for Valuing Distressed or Impaired Businesses

colorpageadmin — Tue, 26 May 2020 14:19:17 +0000

The American Institute of Certified Public Accountants has issued new guidance regarding the valuation of distressed or impaired businesses. The guidance, which is presented as responses to frequently asked questions, distinguishes between distress, which may be a temporary condition, and impairment, which is usually permanent. The FAQs address the application of valuation adjustments and other […]

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Protect Cash Flow to Survive the Financial Crisis

colorpageadmin — Thu, 30 Apr 2020 20:37:24 +0000

There is a substantial amount of information out there about how small businesses should respond to the COVID-19 pandemic, and the fear and uncertainty about the virus and what comes next. It is not hard to find articles about how to protect employees, customers and suppliers from infection and how to talk about the virus. […]

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NY May Force Insurers to Pay Business Interruption Claims

colorpageadmin — Wed, 15 Apr 2020 20:44:20 +0000

It may be worthwhile to file a claim for coronavirus-related losses under your company’s business interruption insurance policy, even if the policy specifically excludes coverage for losses related to virus outbreaks. A bill introduced in the New York State Assembly would require policies that include business interruption insurance to cover interruption claims incurred during the […]

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Are Your Company’s COVID-19 Losses Covered?

colorpageadmin — Tue, 24 Mar 2020 14:51:13 +0000

The restrictions put in place to stop the spread of COVID-19 – such as limiting crowd size, closing restaurants and bars and canceling sporting events – are critically stressing many businesses. One possible form of relief to this financial crisis is insurance coverage, including business interruption and contingent business interruption coverage. Business interruption insurance (also […]

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The Difference Between Price and Value

colorpageadmin — Wed, 11 Mar 2020 15:23:02 +0000

When a business is sold, it often sells for more (or less) than the appraised value. This may come as a surprise to laypeople, but valuators understand that there are many valid reasons that “price” and “value” may differ. Businesses that understand this subtlety are better positioned to make informed decisions. Price is specific to […]

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