Sean Saari, CPA/ABV, CVA, MBA, was recently published in the Cleveland Metropolitan Bar Journal for his article, Why All Values Are Not Created Equal.
It is not uncommon for litigation to stem from disagreements over the value of privately-held companies or related ownership interests. In those situations, many different values are often discussed as the parties attempt to reach a resolution. It is important to make sure that the parties are speaking the same language as far as the type of value being discussed – equity value or enterprise value. While these two types of value are related, there are significant differences between the two and understanding those differences is important in reaching a fair resolution.
The article discusses the differences in equity value vs. enterprise value, as well as the different levels of equity value, to give attorneys additional tools to effectively navigate valuation-related disputes. Read the full article on page 14.