Valuation of a Public Relations Firm for a Family Law Dispute
Family law matter requiring valuation of our client’s interest in a PR firm, including consideration of industry value drivers and impact of recent equity transactions on our value conclusion.
CHS was retained in a family law dispute that required the valuation of our client’s interest in a marketing and PR agency. Our valuation included a detailed review of the firm’s client base and analysis of historical revenue in order to understand the reason for significant revenue growth shortly before the Valuation Date and impact on future revenue expectations.
Our analysis also incorporated:
- an understanding of industry specific value drivers and financial benchmarks;
- careful consideration of the impact of the founders’ personal goodwill on business value;
- reconciliation of our value conclusion to valuation calculations prepared for a corporate reorganization shortly before our valuation date; and,
- consideration of the dilutive impact of stock option grants to key employees.
Our valuation was not disputed and the matter settled at mediation.