No business operates in a vacuum – How current and prospective economic conditions affect value

Description

Abstract: Try as it might, no management team can control every factor that affects a company’s success or failure. Outside forces, such as government regulation, global competition, interest rates, labor supply and tax policy, may all influence the organization’s estimated value. In other words, no business operates in a vacuum. This article discusses an appraiser’s role in this context: to size up current and prospective economic conditions and synthesize them into a meaningful value estimate. (Updated 11/14/12)