Strategic Value – Cannabis Businesses

By: Eli Neal Business Valuation – The Marijuana Chronicles #7 To catch up on past blog posts, check out the links at the end of this article. So far, this blog series has focused on the premise of fair market value, which is defined as a hypothetical transaction between a willing and able buyer and…

The Tax Act has a Significant Impact on 2018 Business Valuations

By Jay Sickler I’m sure you’ve read a lot about the Tax Act’s impact on corporate and personal income taxes, but the 2017 Tax Cuts and Jobs Act is also throwing the business valuation profession into a bit of a frenzy. Since 1993, business valuation practitioners have been able to utilize a consistent corporate income…

Income Approach (Forecast Inputs) – Marijuana Business

By: Eli Neal You can find blog posts #1 – 5 using this link. Business Valuation – The Marijuana Chronicles #6 As discussed in our previous blog post, the Discounted Cash Flow Method (“DCF Method”) relies on a management forecast for future periods. It’s important for valuation analysts to review & scrutinize management’s forecast to…

Income Approach (Discount Rates) – Marijuana Business

By: Eli Neal Catch up on blog posts #1 – 4 using these links: 1. An Introduction to the Oregon Marijuana Industry 2. How to Perform a Business Valuation of a Marijuana Business 3. Adjusted Net Asset Approach for Marijuana Businesses 4. Market Approach – Marijuana Business Business Valuation – The Marijuana Chronicles #5 This…

Understanding the Concept of Standard of Value

By: Jay Sickler We business appraisers value all kinds of businesses for all kinds of purposes. In Portland, Oregon it is almost impossible to focus your practice on one industry or type of business. What business owners, CPAs, and attorneys often don’t realize is that any good business appraiser needs to first understand and explain…

Market Approach – Marijuana Business

By: Eli Neal Business Valuation – The Marijuana Chronicles #4 If you have missed any of our previous blog posts on valuing marijuana businesses, you can find those blog posts here” An Introduction to the Oregon Marijuana Industry, How to Perform a Business Valuation of a Marijuana Business, and Adjusted Net Asset Approach – Marijuana…

Adjusted Net Asset Approach for Marijuana Businesses

By: Eli Neal Business Valuation – The Marijuana Chronicles #3 The Adjusted Net Asset Approach is a valuation methodology that estimates the fair market value of a company by subtracting the total liabilities from the total assets of the firm, after adjusting the balance sheet to fair market value. This form of value will generally…

How to Perform a Business Valuation of a Marijuana Business

By: Eli Neal Recent News Update: Before continuing our blog series on valuing marijuana companies, it’s worth noting that since our last blog post (February 23, 2017), White House spokesman Sean Spicer answered a question regarding the legal conflict at the State and Federal level regarding marijuana. Mr. Spicer said that the marijuana issue has…

An Introduction to the Oregon Marijuana Industry

By: Eli Neal Business Valuation – The Marijuana Chronicles #1 The legal marijuana industry is one of the fastest growing industries in the United States and the State of Oregon. In mid-January 2017, the Portland Business Journal held a Business of Cannabis Panel which featured: Sara Batterby, President & CEO, Hifi Farms; Chris Masse, Partner,…

Reporting Requirements of a Calculations Engagement

Written By: Lincoln Eckhardt Pursuant to the professional standards of both the American Institute of CPAs (“AICPA”) and the American Society of Appraisers (“ASA”), when performing a valuation related service, a valuation analyst (AICPA term) / appraiser (ASA term) have different options as to the type of engagement they can perform. Under the ASA, an…