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Litigated Business Valuation Services
Active Passive Appreciation – Causation

Active Passive Appreciation – Causation

The business appraiser performing an active passive appreciation analysis looks to their engaging legal counsel to define and interpret state law in the particular jurisdiction. An active passive analysis is performed when state divorce law requires a determination of...

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Working Capital Changes in a Free Cash Flow Forecast– Part III

Working Capital Changes in a Free Cash Flow Forecast– Part III

Part II of my working capital blog identified methods often used by business appraisers when forecasting working capital. In this installment, I will present some additional thoughts regarding this topic. Depending on the facts and circumstances, it is typically appropriate to consider the company’s historical working capital ratios and industry working capital metrics at the composite level (e.g. total working capital), as well as each separate component of working capital (e.g. accounts receivable, inventory, accounts payable, etc.).

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