Business Valuation – M&A vs. Equity Analysis

The FVS Valuation Podcast

Guests: Josh Shilts, CPA/ABV/CFF/CGMA Matthew Shaffer, Ph.D Matthew Shaffer, an assistant professor at USC Marshall School of Business, feels accounting is the fundamental measurement for how companies perform and emphasizes the use of accounting fundamentals to determine valuation methods. His December 2021 article "Why Value the Enterprise enroute to Equity? Valuation Practice in M&A" caught Josh's attention. During this episode, Josh Shilts and Professor Shaffer discuss:

• What prompted the writing of the article

• Why M&A advisors and equity analysts use such different methods of valuation
• How to improve our understanding of the variation between enterprise-value and price value multiples
• Why not directly capitalize earnings into an equity valuation

This is a podcast from AICPA & CIMA, Together as the Association of International Certified Professional Accountants. Learn more at aicpa.org and cimaglobal.com

The episode is brought to you by the AICPA’s Forensic and Valuation Services Section, the premier provider of information, tools, advocacy and guidance for professionals who specialize in providing forensics, valuation, fraud, fair value and damages and by the CFF Credential and ABV Credential programs which allow AICPA members to demonstrate competence and confidence in providing these services to their clients. Visit us online at www.aicpa.org/fvs to join our community and gain access to valuable member-only benefits.

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