Benchmarking — or comparing a company’s financials to those of industry peers and its own historical performance — can provide insight into future cash flows and operating risks. Business valuation professionals use the following types of benchmarks to assess company-specific risk and, in turn, a subject company’s expected return. Profitability Profitability metrics evaluate how much money…
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What U.S. Expats Need to Know About Estate Planning
At least 12% of Americans have thought about living abroad in retirement, according to a study by the Aegon Center for Longevity and Retirement. If that’s part of your retirement plan — or you’re already living outside the United States — it’s important to know that your country of residence could affect your estate and tax…
Measuring Fair Value for Financial Reporting Purposes
Fair market value is the appropriate standard of value in most business valuation assignments. But when valuing an asset for financial reporting purposes, fair value is generally used. Here’s an overview of what fair value is and how it differs from fair market value. Eyes on GAAP The terms “fair value” and “fair market value” are…