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,…

Accounting Literacy for Corporate Attorneys and Litigators

Earlier this month, Cogence Group Principal Jay Sickler gave an Accounting Literacy for Corporate Attorneys and Litigators presentation to members of the Multnomah Bar Association. We have provided you access to the PowerPoint slide deck presented at this discussion, which was created to help you better understand accounting terms and methods. The PowerPoint can be…

Population Sampling in a Damages Analysis

We were recently engaged by the defendant to a lawsuit in which the company in question was being sued by the United States Government for approximately $350 million. The government’s case hinged on the analysis of a very small sample which they extrapolated to the entire population. Our task was to evaluate the methodology and…

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…

Valuing a Profitable Operating Business Worth More as a Collection of Assets

Coming to the conclusion that a profitable, successful operating business has no goodwill is not uncommon. Many closely held businesses that have been in existence for decades amass real estate and other tangible assets, the values of which, outpace the value of the company as a whole, therefore yielding no intangible value, or goodwill. It…