In a post-COVID world, current market conditions continue to display unprecedented swings and have created one of the most challenging environments to determine the valuation of privately held companies in recent history. Our session will include an interactive discussion and a deeper dive into the cause and effect of these factors. In addition, we will discuss the impact of these changing factors on the fair market value range of a company, which is essential in getting a new ESOP transaction completed (due to disconnects in expected purchase price versus fair market value) as well as the fair market value for ongoing valuations.
Learning Objectives:
Understand the impact of current market forces and the current volatile operating environment on the valuation (and, consequently, the fair market value) of privately held companies
Recognize how financial advisors and trustees contemplate and address external market forces and how they apply those risk factors in assessing fair market value
Assess the factors impacting the valuation (or the transaction price, for a new ESOP formation) of their company in order to manage those factors that may improve fair market value
