Michael A. Gould is a Director at Rotenberg Meril Solomon Bertiger & Guttilla, P.C. Mr. Gould is a CPA, ABV, ASA, CFE, CVA, CFF and specializes in fair value accounting for financial reporting, mergers and acquisitions, sales of a business, split-ups/spin-offs, succession planning, liquidation/reorganization, mediation/arbitration and more. Today, Mr. Gould shares with us his wealth of knowledge and answers questions about valuations and more.
Key Points from our Conversation
- Intangible assets that are acquired by a company will appear on the balance sheet based upon the acquisition cost, but any intangible assets owned by a company will always be considered in the business valuation whether it appears on the balance or not.
- While applying the principles outlined in Rev. Rul. 59-60 to all tax valuations is appropriate, differences do immerge in the application of valuation discounts depending on the purpose of the valuation.
- Seasonality in business operations reflects the regular and predictable changes that recur within every calendar year; cyclicality in business can be defined as a company’s sales and earnings that fluctuate with variations in the economy.
- We always attempt to obtain at least good estimates if not the exact accrual basis financial information in order to be sure we have considered all variables in our valuation conclusion.