COVID-19

With businesses currently struggling, expected revenue and profit levels are declining for many. If you carry goodwill on your balance sheet, this global economic decline may be a triggering event for testing goodwill for impairment, and this may be the time to do so. With high volatility in the stock market and an end date for COVID-19 Stay-at-Home just entering the discussion, experts cannot predict what the long-term economic implications will be on the value of your real estate, business, and other assets. We want our clients to know they have options.

Valuation is a combination of facts, data, and assumptions.   As part of the risk assessment process, the valuation analyst must consider contemporaneous conditions and ask “how is the company affected by this?” The COVID-19 pandemic is a highly unusual challenge to valuation professionals, as we don’t know how businesses and certain industries may react once restrictions are lifted and the economy is allowed to resume operations on a “normal” basis.