In this edition of Valuation Insights we discuss retention incentives that are expected to become more mainstream under the new Trump Administration. The article discusses recent high profile cases, such as United Technologies recently announced deal to retain Carrier Corporation's furnace manufacturing facility in Indiana. The most common retention incentives are discussed in the article as well as best practices to improve your prospects for securing them.
Other Topics Covered Include:
• Goodwill impairment trends as highlighted in the Duff & Phelps 2016 U.S. and European Goodwill Impairment Studies • Duff & Phelps' Fifth Annual Transaction Trail Report on M&A and Capital Markets Activity in Southeast Asia • Delaware Chancery Court Case which utilized the Duff & Phelps Valuation Handbook Series as support for its conclusion that the respondent's expert's analysis was more reliable.
Market conditions at the fourth quarter’s outset largely reflected expectations of continued (albeit modest) economic growth and accommodative monetary policy. At mid quarter, the presidential election portended a period of fiscal stimulus and tightening monetary policy. Overall, the quarter witnessed a sharp rally in equities, tightening credit spreads, a downturn in Treasury prices and a strengthening of the U.S. dollar.
The overall outlook for 2017 Canadian M&A activity remains moderately positive, despite the decrease in the number of Canadian companies sold in 2016. Corporate balance sheets are flush with cash, with corporations actively looking for quality investments. Interest rates remain low, and oil prices are showing signs of improvement. Private Equity firms also have large cash holdings and often see Canadian firms as good "bolt-on" opportunities. Read the report for more detail on trends, public market performance and deal activity.
Duff & Phelps and the Financial Executives Research Foundation (“FERF”) first published the results of their comprehensive Goodwill Impairment Study in 2009. This inaugural study examined U.S. publicly-traded companies’ recognition of goodwill impairment at the height of the financial crisis (the end of 2008 and the beginning of 2009), and featured a comparative analysis of the goodwill impairments of over 5,000 companies (by industry), as well as the findings of a survey of Financial Executives International (“FEI”) members.
Corporate borrowing activity in the second quarter was robust, particularly in the middle-market, which exceeded the record volume seen in the first quarter. Supply and demand for middle-market credit became more balanced, as opportunistic issuers came to market and/or increased issuance size. Near team market conditions remain compelling for middle-market issues as borrowers are capitalizing on strong institutional appetite by pursing favorably crafted deals for acquisition, recapitalization and growth financing.
Mature food companies need to use aggressive cost reduction, portfolio simplification, and substantially new approaches to growth to deliver competitive returns.
Capital Markets Insights – Late Fall 2018Duff & Phelps
What’s been an increase in growth and acquisition-related financings and recapitalization transactions? Read the fall edition of Duff&Phelps’ Capital Markets Insights.
Market conditions at the fourth quarter’s outset largely reflected expectations of continued (albeit modest) economic growth and accommodative monetary policy. At mid quarter, the presidential election portended a period of fiscal stimulus and tightening monetary policy. Overall, the quarter witnessed a sharp rally in equities, tightening credit spreads, a downturn in Treasury prices and a strengthening of the U.S. dollar.
The overall outlook for 2017 Canadian M&A activity remains moderately positive, despite the decrease in the number of Canadian companies sold in 2016. Corporate balance sheets are flush with cash, with corporations actively looking for quality investments. Interest rates remain low, and oil prices are showing signs of improvement. Private Equity firms also have large cash holdings and often see Canadian firms as good "bolt-on" opportunities. Read the report for more detail on trends, public market performance and deal activity.
Duff & Phelps and the Financial Executives Research Foundation (“FERF”) first published the results of their comprehensive Goodwill Impairment Study in 2009. This inaugural study examined U.S. publicly-traded companies’ recognition of goodwill impairment at the height of the financial crisis (the end of 2008 and the beginning of 2009), and featured a comparative analysis of the goodwill impairments of over 5,000 companies (by industry), as well as the findings of a survey of Financial Executives International (“FEI”) members.
Corporate borrowing activity in the second quarter was robust, particularly in the middle-market, which exceeded the record volume seen in the first quarter. Supply and demand for middle-market credit became more balanced, as opportunistic issuers came to market and/or increased issuance size. Near team market conditions remain compelling for middle-market issues as borrowers are capitalizing on strong institutional appetite by pursing favorably crafted deals for acquisition, recapitalization and growth financing.
Mature food companies need to use aggressive cost reduction, portfolio simplification, and substantially new approaches to growth to deliver competitive returns.
Capital Markets Insights – Late Fall 2018Duff & Phelps
What’s been an increase in growth and acquisition-related financings and recapitalization transactions? Read the fall edition of Duff&Phelps’ Capital Markets Insights.
BDO Breakout Session: 2014 Texas A&M Retailing Summit Gordon Porter
Ted Vaughan and Bob Snape, President of BDO Capital Advisors, presented on the topic of strategic growth opportunities and M&A activity in the retail sector at the 2014 Texas A&M Retailing Summit.
Mercer Capital's Bank Watch | July 2019 | Bank M&A Mid-Year UpdateMercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Borrowing costs for middle-market debt issuers generally declined during the third quarter, despite a modest increase in leverage levels and little change in benchmark rates. The Fed, as expected, left benchmark interest rates unchanged in the third quarter, but did announce a program to gradually reduce its balance sheet from $4.5 trillion (a result of recessionary quantitative easing) to $3 trillion over the next three years. Thus, the prevailing combination of low borrowing costs, high leveragability and a generally benign default rate outlook, presents an attractive backdrop for issuance. This "perfect storm" of market conditions provides a compelling (albeit narrowing) window for middle-market issuers.
Mercer Capital's Value Focus: Auto Dealer Industry | Year-End 2018Mercer Capital
Mercer Capital's Auto Dealer Industry newsletter provides perspective on valuation issues. Each newsletter also includes macroeconomic trends, industry trends, and guideline public company metrics.
Now in its third year, Duff & Phelps' Global Enforcement Review provides analysis and commentary on global enforcement trends in the financial services industry. To compile this report, we studied published data released by the UK Financial Conduct Authority, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, the U.S. Financial Industry Regulatory Authority, and the Securities and Futures Commission of Hong Kong in 2015 and recent years. We have also explored the enforcement trends specifically in various offshore jurisdictions in the chapter: The Changing Tides. As definitions and reporting standards vary across the authorities under review, certain data points may not be unilaterally comparable or available. We have nevertheless sought to examine figures from each regulatory body as indicative of wider trends in the global financial services industry.
Another Year Another Medal
U.S. industrial absorption is on track to finish 2018 with its third
strongest net occupancy growth, behind only 2016 and 2014.
Considering the strong economic fundamentals, there is no
indication that demand will soften in the final quarter of 2018.
This means that the three strongest years of industrial
occupancy growth since the 1980s will have occurred in the last
five years. Looking forward, the combination of limited new
product and high utilization rates of existing footprints will
translate to strong performance for Class A product and
improved performance for Class B and C product.
U.S. MarketBeats provide an overview of quarterly CRE activity and trends, a snapshot of current economic and capital market conditions as well as market-level statistics on key metrics.
The U.S. economy in 2016 was characterized by steady growth in the face of uncertainty. The year began with steep declines in global equity markets in response to concerns about a slowdown in China, the Europe replaced Asia as the focal point of global anxiety after the Brexit vote. In the fourth quarter, the U.S. unexpectedly elected Donald Trump as President. Despite uncertainty, the economy continued to add an average of 180,000 jobs per month during 2016.
Welcome to the Cushman & Wakefield Atlas Outlook 2016,
an update on the International Investment Atlas that reviews
how the market performed last year and, more particularly,
what we should anticipate for the year ahead.
We have examined a series of questions when approaching this publication:
what are the key forces driving and transforming the global market? Who will be
the winners in this volatile environment? How should a subsequent investment
strategy be most advantageously aligned?
Of course, in a highly uncertain but fast changing world, the need for insightful
research is increased – but the task of delivering a robust and well-considered
view is made more difficult. By bringing together expert opinion from across our
capital markets, occupier and research teams around the world, we have sought
to answer this challenge and hope you agree we have delivered a concise but
thoughtful review of the state of the market and the outlook for the year ahead.
Mercer Capital's Value Focus: Transportation & Logistics | Q1 2019 | Feature...Mercer Capital
Mercer Capital's Transportation & LogisticsIndustry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, mergers and acquisitions review, and guideline public company metrics.
Commercial real estate executives appear relatively optimistic about the general state of the market in 2016, with many predicting higher than average deal volumes for their firms. When considering the adoption of new technology, most believe that the influx of commercial real estate tech companies is revolutionizing the industry. These executives recognize that while the U.S. commercial real estate market is recovering, there are still certain segments that are poised for significant decline.
Running Head: RESEARCH ANALYSIS 1
RESEARCH ANALYSIS 17
Research Analysis
Natasha R. Chalk
University of Phoenix
In the latter part of the 19th century, the Coca-Cola Company began its existence. Coca-Cola is one of the foremost global producers and disseminators of soft drink beverages, syrups, and concentrates. Coca-Cola maintains a presence in more than two hundred nations and is world-renowned for its innovative beverage, Coca-Cola. The brand has been and has expanded to encompass greater than two hundred and thirty distinct brands (Pöhler, 2017; Telekunta & Rathore, 2018). The Coca-Cola organization has central offices in Atlanta, Georgia. The subsidiaries of Coca-Cola provide gainful employment for more than thirty thousand families worldwide. Coca-Cola derives 70% of its profits and corporate volume from international commerce. The global presence of Coca-Cola is its primary strengths (Levy & Young, 2004).
The US soft beverage market has three primary actors, which are, PepsiCo and Coca-Cola, and Cadbury-Schweppes. Over 40% of the domestic market pertains to Coca-Cola, in comparison to 8% market share held by Cadbury-Schweppes and 21% maintained by PepsiCo. Although Coca-Cola is an international brand, it maintains an emphasis on the local domestic market. Research has shown a clear relationship between the context of organizations´ market percentage and the degree of viability (Pöhler, 2017; Telekunta & Rathore, 2018). Studies show there are four attributes why the market percentage is associated with enhanced viability. First of all, the economies of scale combined with an augmentation of experiential knowledge make the most efficient optimization a production technology and techniques. Second, the clients are adverse to the risks and will consequently remain with the primary market actors resulting from prevailing comfort factors. Third, attributed to presence and leadership sustained by Coca-Cola in the marketplace, the organization can apply its position towards enabling the negotiation decrease pricing in the supply chain. The Coca-Cola organization also has the capacity of decreasing pricing for the products it manufactures. The fourth attribute is that the leader in the marketplace has exceptional administrative units with effective industrial processes in all facets of the organization. The Coca-Cola organization applies the guideline of an adapt stand incorporation (Levy & Young, 2004). Coca Cola´s success represents advocacy of the adaptive stand strategy. Porter study considers the environmental tractors are influencing the competitive position of market actors. Five forces are having a competitive nature governing competitiveness, and these forces are the following:
a. The introduction of a market actor.
b. The menace ...
BDO Breakout Session: 2014 Texas A&M Retailing Summit Gordon Porter
Ted Vaughan and Bob Snape, President of BDO Capital Advisors, presented on the topic of strategic growth opportunities and M&A activity in the retail sector at the 2014 Texas A&M Retailing Summit.
Mercer Capital's Bank Watch | July 2019 | Bank M&A Mid-Year UpdateMercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
Borrowing costs for middle-market debt issuers generally declined during the third quarter, despite a modest increase in leverage levels and little change in benchmark rates. The Fed, as expected, left benchmark interest rates unchanged in the third quarter, but did announce a program to gradually reduce its balance sheet from $4.5 trillion (a result of recessionary quantitative easing) to $3 trillion over the next three years. Thus, the prevailing combination of low borrowing costs, high leveragability and a generally benign default rate outlook, presents an attractive backdrop for issuance. This "perfect storm" of market conditions provides a compelling (albeit narrowing) window for middle-market issuers.
Mercer Capital's Value Focus: Auto Dealer Industry | Year-End 2018Mercer Capital
Mercer Capital's Auto Dealer Industry newsletter provides perspective on valuation issues. Each newsletter also includes macroeconomic trends, industry trends, and guideline public company metrics.
Now in its third year, Duff & Phelps' Global Enforcement Review provides analysis and commentary on global enforcement trends in the financial services industry. To compile this report, we studied published data released by the UK Financial Conduct Authority, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, the U.S. Financial Industry Regulatory Authority, and the Securities and Futures Commission of Hong Kong in 2015 and recent years. We have also explored the enforcement trends specifically in various offshore jurisdictions in the chapter: The Changing Tides. As definitions and reporting standards vary across the authorities under review, certain data points may not be unilaterally comparable or available. We have nevertheless sought to examine figures from each regulatory body as indicative of wider trends in the global financial services industry.
Another Year Another Medal
U.S. industrial absorption is on track to finish 2018 with its third
strongest net occupancy growth, behind only 2016 and 2014.
Considering the strong economic fundamentals, there is no
indication that demand will soften in the final quarter of 2018.
This means that the three strongest years of industrial
occupancy growth since the 1980s will have occurred in the last
five years. Looking forward, the combination of limited new
product and high utilization rates of existing footprints will
translate to strong performance for Class A product and
improved performance for Class B and C product.
U.S. MarketBeats provide an overview of quarterly CRE activity and trends, a snapshot of current economic and capital market conditions as well as market-level statistics on key metrics.
The U.S. economy in 2016 was characterized by steady growth in the face of uncertainty. The year began with steep declines in global equity markets in response to concerns about a slowdown in China, the Europe replaced Asia as the focal point of global anxiety after the Brexit vote. In the fourth quarter, the U.S. unexpectedly elected Donald Trump as President. Despite uncertainty, the economy continued to add an average of 180,000 jobs per month during 2016.
Welcome to the Cushman & Wakefield Atlas Outlook 2016,
an update on the International Investment Atlas that reviews
how the market performed last year and, more particularly,
what we should anticipate for the year ahead.
We have examined a series of questions when approaching this publication:
what are the key forces driving and transforming the global market? Who will be
the winners in this volatile environment? How should a subsequent investment
strategy be most advantageously aligned?
Of course, in a highly uncertain but fast changing world, the need for insightful
research is increased – but the task of delivering a robust and well-considered
view is made more difficult. By bringing together expert opinion from across our
capital markets, occupier and research teams around the world, we have sought
to answer this challenge and hope you agree we have delivered a concise but
thoughtful review of the state of the market and the outlook for the year ahead.
Mercer Capital's Value Focus: Transportation & Logistics | Q1 2019 | Feature...Mercer Capital
Mercer Capital's Transportation & LogisticsIndustry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, mergers and acquisitions review, and guideline public company metrics.
Commercial real estate executives appear relatively optimistic about the general state of the market in 2016, with many predicting higher than average deal volumes for their firms. When considering the adoption of new technology, most believe that the influx of commercial real estate tech companies is revolutionizing the industry. These executives recognize that while the U.S. commercial real estate market is recovering, there are still certain segments that are poised for significant decline.
Running Head: RESEARCH ANALYSIS 1
RESEARCH ANALYSIS 17
Research Analysis
Natasha R. Chalk
University of Phoenix
In the latter part of the 19th century, the Coca-Cola Company began its existence. Coca-Cola is one of the foremost global producers and disseminators of soft drink beverages, syrups, and concentrates. Coca-Cola maintains a presence in more than two hundred nations and is world-renowned for its innovative beverage, Coca-Cola. The brand has been and has expanded to encompass greater than two hundred and thirty distinct brands (Pöhler, 2017; Telekunta & Rathore, 2018). The Coca-Cola organization has central offices in Atlanta, Georgia. The subsidiaries of Coca-Cola provide gainful employment for more than thirty thousand families worldwide. Coca-Cola derives 70% of its profits and corporate volume from international commerce. The global presence of Coca-Cola is its primary strengths (Levy & Young, 2004).
The US soft beverage market has three primary actors, which are, PepsiCo and Coca-Cola, and Cadbury-Schweppes. Over 40% of the domestic market pertains to Coca-Cola, in comparison to 8% market share held by Cadbury-Schweppes and 21% maintained by PepsiCo. Although Coca-Cola is an international brand, it maintains an emphasis on the local domestic market. Research has shown a clear relationship between the context of organizations´ market percentage and the degree of viability (Pöhler, 2017; Telekunta & Rathore, 2018). Studies show there are four attributes why the market percentage is associated with enhanced viability. First of all, the economies of scale combined with an augmentation of experiential knowledge make the most efficient optimization a production technology and techniques. Second, the clients are adverse to the risks and will consequently remain with the primary market actors resulting from prevailing comfort factors. Third, attributed to presence and leadership sustained by Coca-Cola in the marketplace, the organization can apply its position towards enabling the negotiation decrease pricing in the supply chain. The Coca-Cola organization also has the capacity of decreasing pricing for the products it manufactures. The fourth attribute is that the leader in the marketplace has exceptional administrative units with effective industrial processes in all facets of the organization. The Coca-Cola organization applies the guideline of an adapt stand incorporation (Levy & Young, 2004). Coca Cola´s success represents advocacy of the adaptive stand strategy. Porter study considers the environmental tractors are influencing the competitive position of market actors. Five forces are having a competitive nature governing competitiveness, and these forces are the following:
a. The introduction of a market actor.
b. The menace ...
The latest quarterly strategic report that gives a summary of top market trends impacting major spend categories, and gives actionable insights to drive strategic value for your organization.
The latest quarterly strategic report that gives a summary of top market trends impacting major spend categories, and gives actionable insights to drive strategic value for your organization.
Following years of growth and favourable market trends, the global life sciences industry now finds itself facing a ‘new normal’. By any measure it is still a stand-out performer globally, and a key strategic area for the EMEA region. However, markets are changing.
Life science companies must adopt new business models to achieve the following:
Counter slowing sales growth
Stem profitability challenges
Deliver patient outcomes that reflect higher consumer expectations
Position the industry for future success and innovation.
Making these adjustments successfully will come down to individual companies’ ability to find, engage and retain the right people. For the most part, the challenge is about talent and the ability of each organisation, regardless of location, to source it.
Here, we look at the top five issues facing the industry and how organisations in the region can respond.
A detailed study to evaluate the financial impact of demanding made in usa pr...Charm Rammandala
The purpose of this article is to investigate the notion that increasingly companies trying to promote products made in USA over imported products. Due to the increased influence by politicians and perception of segment of population, companies are looking in to bringing certain manufacturing plants back to USA. This study will focus on understanding motivations behind it and how feasible and practical the notion is and whether it makes any financial sense
Volume 2, 2009 International Journal on Governmental Financial Management
The State of Budget Transparency Worldwide, Vivek Ramkumar
International Public Sector Accounting Standards Board Review the Cash Basis IPSAS: An Opportunity to Influence Developments, Paul Sutcliffe
The Cash Basis IPSAS – An Alternative View, Michael Parry and Andy Wynne
Using Periodic Audits to Prevent Catastrophic Project Failure Paul Dorsey
Framework for Evaluating Internal Controls over Financial Reporting in Sovereign Governments, Jawahar Thakur and Nalin Kumar Srivastava
Short-Comings of Government Financial Management: A Generational Accounting Critique, Liyan Tang and Paul J M Klumpes
Investigating the Governmental Accounting Reform of Greek National Health System: Some Preliminary Evidence, Filippos Stamatiadis
Nigeria’s Economic Competitiveness in the African Context, John C Anyanwu and Andrew E O Erhijakpor
As current growth rates reach a new low, competition for the future is on the...SimCorp
As growth rates came to a standstill in 2015, we took stock of expectations for the future. Surveying firms worldwide, we discovered them to be optimistic about long-term prospects, and found the pursuit of future profits gathering pace.
In this edition of Regulatory Focus, the experts in Duff & Phelps round up the latest news and publications issued by the Financial Conduct Authority. Read Duff & Phelps Regulatory Focus August 2018 edition here.
Purpose of Assignment This week students will review and revise .docxmakdul
Purpose of Assignment
This week students will review and revise their Week 3 Research Analysis for Business Signature Assignment based on economic analysis and the feedback provided by their facilitator. Students will also expand their Week 3 analyses to evaluate the challenges of expanding their chosen company's production to a foreign market.
About Your Signature Assignment
This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments might be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.
Assignment Steps
Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Revise your Week 3 assignment, Research Analysis for Business, using the feedback provided by your facilitator. This Week 6 report should only include one conclusion, so you will need to rewrite the conclusion you included in your Week 3 assignment, Research Analysis for Business.
Select a foreign market in which to expand your chosen product. If you wish, you may use one of the countries your team analyzed in their Week 5 Comparative and Absolute Advantage Assignment.
Prepare a minimum1,750-word report addressing the points listed below. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft® Excel® format in a separate file. You may use the U.S. Department of Labor's Bureau of Labor Statistics (BLS), U.S. Dept. of Commerce's Bureau of Economic Analysis (BEA), the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, and World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. The new sections of your report should:
· Evaluate current global economic conditions and their effects on macroeconomic indicators in your selected country. Provide forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth.
· Evaluate any competitors' existing production in the chosen country.
· Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library.
· Categorize the type of economy that exists in your selected country as closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?
· Assess how your chosen country's curren ...
Raportul PricewaterhouseCoopers (PwC) cu tendinte si recomandari referitoare la modul in care companiile isi raporteaza performantele de sustenabilitate
This paper has been drawn as a way of suggesting possibly ways in improving business operations. Through the use of strategic planning management companies have emerged as victors through their correctly spelled strategies for analysis and business development seek. This paper has used Unilever foods (UK) as a case study. It is therefore recommended that various business operation may use suggested measures as a way of boosting their business through the use of various strategic options.
Similar to Duff Phelps Valuation Insights Q1 2017 (20)
How can hospitalist programs manage the ongoing shift to value-based care, along with operating costs and the challenges of managing, recruiting and retaining high-quality physicians? Read the report to find out.
Read Duff & Phelps’ detailed synopsis of the latest news and publications issued by France’s AMF affecting the asset management industry during the third quarter of 2018.
Healthcare Services Sector Update – October 2018Duff & Phelps
healthcare m&a advisory, best performing sectors in healthcare, healthcare services industry, m&a advisors in healthcare industry, Healthcare Services Index
In this edition of Regulatory Focus, the experts in Duff & Phelps round up the latest news and publications issued by the Financial Conduct Authority. Read more
Medical Device Contract Manufacturing Update – Fall 2018Duff & Phelps
The global medical devices contract manufacturing market was valued at $70 billion in 2017, and is forecasted to increase to $115 billion in 2022, a compound annual growth rate (CAGR) of 9.5%. Read the Medical Device Contract Manufacturing Update Report for market trends impacting the contract manufacturing organizations (CMO).
The Duff & Phelps cost trend update is now available for both the Construction Cost and Equipment Cost indices. This trend update dates back to 2015 and shows how the last four years has been relatively stable for construction after a decade of volatility, while the equipment cost indices continues to show moderate year-on-year changes. Please be reminded that these indices are just average indicators of change and they are not absolutes. Duff & Phelps advises that after five to seven years, you should establish a new replacement cost basis by using a qualified valuation professional. Please contact Brad Schulz at Duff & Phelps to discuss establishing a new replacement cost basis.
In this edition of Regulatory Focus, the experts in Duff & Phelps round up the latest news and publications issued by the Financial Conduct Authority. Read more
Hedge Fund and Private Equity Fund - Structures, Regulation and Criminal RisksDuff & Phelps
Duff & Phelps Managing Directors Ann Gittleman and Norman Harrison discussed structures, regulation and criminal risks in hedge fund and private equity fund at the Annual FBI conference in Washington, D.C. Read more in this report.
Food and Beverage M&A Landscape - Summer 2018Duff & Phelps
M&A deal activity in the food and beverage industry remains active, with more than 270 deals closed over the last twelve-month (LTM) period ended July 31, 2018. Mega-sized deals continued to make headlines, with several North American transactions closing at multibillion values since our Spring 2018 report. The largest transaction seen was the merger between Keurig Green Mountain Inc. and Dr. Pepper Snapple Group, at a value over $25 billion. Other large transactions include, Conagra Brands’ $10.9 billion acquisition of Pinnacle Foods Inc., a manufacturer and distributor of branded convenience food products in North America, as well as General Mills’ acquisition of Blue Buffalo Pet Products, Inc., a natural pet food company for $8.0 billion.
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what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
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The secret way to sell pi coins effortlessly.DOT TECH
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US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
1. Valuation Insights
In this edition of Valuation Insights, we discuss highlights from the 2016 U.S. and
European Goodwill Impairment Studies. The U.S. study, done in partnership with the
Financial Executives Research Foundation, analyzed goodwill impairment trends for over
8,500 U.S. publicly traded companies. The European study analyzed companies in the
STOXX® Europe 600 Index, which included companies in 18 countries.
In our Technical Notes section, we discuss a key focus of the new administration:
retention incentives designed to keep jobs in the United States. The article discusses the
different types of retention incentives that are available and the steps firms can take to
go about securing them.
In our International in Focus article, we discuss highlights from the Duff & Phelps
Transaction Trail report, a biannual report that analyzes transaction and capital markets
activities in Singapore, Malaysia and Indonesia.
Finally, our Spotlight article discusses the use of the Duff & Phelps Valuation Handbooks
in the merger dispute case of Dunmire v. Farmers & Merchants Bancorp of W. Pa.
In every issue of Valuation Insights, you will find industry market multiples that are useful
for benchmark valuation purposes. We hope that you will find this and future issues of this
newsletter informative and reliable.
Read this issue to find out more.
Inside
2 Lead Story
Goodwill Impairment Trends
Up in the U.S. and Europe
3 Technical Notes
Retention Incentives Are Moving
to the Mainstream
4 International In Focus:
Duff Phelps Publishes
Transaction Trail Report on
MA and Capital Markets
Activity in Southeast Asia
5 Spotlight
Delaware Court of Chancery cites
Duff Phelps Valuation Handbooks
6 North American Industry
Market Multiples
7 European Industry
Market Multiples
8 About Duff Phelps
Industry Market Multiples Always Online
Valuation Insights Industry Market Multiples are now available online with
data back to 2010. Visit www.duffandphelps.com/multiples to analyze
market multiple trends over time across industries and geographies.
First Quarter 2017
Duff Phelps 1
2. Duff Phelps 2
Valuation Insights – First Quarter 2017
The 2016 U.S. Goodwill Impairment Study (the “2016 U.S. Study”),
prepared in partnership with the Financial Executives Research
Foundation, analyzed the general and industry trends of goodwill
impairment for over 8,500 U.S. publicly traded companies for
calendar year 2015.
Goodwill impairments (GWI) by U.S. companies in 2015 more than
doubled compared to the prior year, rising to $57 billion in 2015 from
$26 billion in 2014. This comes against the backdrop of 2015 being an
extremely robust year for MA activity, with a massive $458 billion of
goodwill added to balance sheets, a record high since we began
tracking this information in 2008.
Industry Highlights
• Energy was the hardest-hit industry for 2 consecutive years.
The amount of GWI more than tripled from 2014 to 2015
(increasing from $5.8 billion to $18.2 billion), driven by a
significant drop in oil prices. Five of the top 10 largest impairment
events were in Energy.
• Information Technology also was particularly impacted in 2015,
with aggregate GWI more than tripling from 2014 (up to $12.9
billion from $3.6 billion).
• Industrials and Consumer Discretionary GWI also doubled in
2015 ($7.7 billion and $7.6 billion, respectively) compared to the
2014 levels ($3.5 billion and $2.8 billion, respectively).
Survey of FEI Members
The 2016 U.S. Study also includes the results of the annual GWI
survey (the “2016 Survey”) of Financial Executives International
(FEI) members. Notably, Step 0 continues to gain popularity among
companies. The 2016 Survey demonstrates record use of the
Step 0 test since the option first became available: 59% of public
company respondents report that they use Step 0 when performing
GWI analyses, which is up from 54% in the 2015 survey and 29% in
the 2013 survey. A similar trend was noted with private companies:
50% of private company respondents currently apply Step 0, compared
to 40% in 2015 and 22% in 2013. Separately, the 2016 Survey
revealed that over 80% of respondents are in favor of FASB’s
elimination of Step 2 of the current GWI test.
The 2016 European Goodwill Impairment Study (the “2016
European Study”) continues to examine general GWI trends across
industries and countries in the European market. The 2016 European
Study is focused on companies in the STOXX® Europe 600 Index,
which comprises large, midsize and small capitalization companies
across 18 countries in the European region.
European companies in the STOXX® Europe 600 Index recognized
a total of €37.1 billion of GWI in calendar year 2015, an increase of
approximately 26% from €29.4 billion in 2014.
Industry Highlights
Financials returned to first place in 2015 (also topping the list in
2013), with the highest aggregate GWI at €14.3 billion. Contributing
to impairments were the effect of the European Central Bank’s
quantitative easing policies, conducive to an environment of ultra-low
or even negative interest rates that hurt margins, and an adverse
regulatory and litigation environment.Should Financials be excluded
from the aggregate GWI amounts in both 2014 and 2015, total
impairment would stay flat at €23 billion.
Utilities followed with an aggregate GWI amount of €9.0 billion, a
fourfold increase from the 2014 level of €2.1 billion, partly driven
by a low oil and gas price environment.
Country Highlights
• Germany recorded the highest aggregate amount of GWI in
2015 at €11.6 billion, with 90% occurring in the top two events.
This represents an eightfold increase relative to 2014 level of €1.4
billion, a historic high. German Utilities suffered from a shift toward
renewable energy and a more decentralized production, while the
Financials were impacted by tightened regulation and low interest
rates.
• The United Kingdom had the second-highest aggregate GWI
amount (€7.7 billion) yet saw a significant decrease (of €4.7
billion, or 38%) from 2014, the lowest amount in the last 5 years.
Approximately 83% of UK Energy companies recorded GWI.
Notably, following Brexit, all industries are expected to be under
increased pressure as goodwill calculations should reflect the
resulting uncertain business environment.
• France recorded the third-highest aggregate GWI amount in 2015
at €6 billion, a significant increase compared to 2014. Financials
and Utilities were most affected by impairments. A high degree of
GWI concentration was observed as three companies accounted
for 76% of the total GWI. Impairments by French Utilities were
mainly attributable to the collapse in oil and gas prices, while the
largest impairment event in Financials was tied to increased
regulatory capital requirements.
• Spain recorded aggregate GWI of €1.5 billion in 2015,
significantly higher than the amounts in each of the previous
3 years. A large degree of concentration was present as three
companies accounted for nearly 80% of the total 2015 GWI
amount. Also, 81% of the aggregate GWI occurred in the
Financial and Industrial sectors, the latter being impacted by
an adverse regulatory environment for a number of Spanish
motorway concessions.
To learn more and read the Duff Phelps goodwill impairment studies
visit www.duffandphelps.com/GWIstudies.
Lead Story:
Goodwill Impairment Trends Up in the U.S. and Europe
3. Duff Phelps 3
Valuation Insights – First Quarter 2017
Technical Notes:
Retention Incentives Are Moving to the Mainstream
Soon after the U.S. national election concluded, the new administration
and United Technologies announced a deal to retain Carrier
Corporation’s furnace manufacturing facility in Indiana. In exchange for
$7 million of economic development incentives – and, according to
some commentators, “additional considerations” – Carrier rescinded its
earlier decision to leave the United States and instead decided to retain
1,069 jobs at its Indiana plant. The incentives are reported to include
$5 million of Economic Development for a Growing Economy Tax Credit
refundable income tax credits, $1 million of training grant
reimbursements and $1 million of other incentives related to Carrier’s
investment of $16 million.1
Typically, states have used economic development incentives to attract
new facilities. For example, in a recent announcement, Amazon
indicated that the company will build a new 1 million square foot
distribution center in suburban Detroit, creating 1,000 jobs and
investing $90 million. In exchange, the State of Michigan will provide
the company with a $7.5 million cash grant from the Michigan Strategic
Fund.2
As the recent deal with Carrier indicates, incentives used to retain jobs
may become just as important as incentives used to create jobs.
According to our recent, informal survey of state incentives, at least 35
states offer some type of retention incentives. While the types of
incentives vary, the most common retention incentive is training,
especially incumbent worker training.3
States justify these programs on
the grounds that enhancing the skills of existing workers improves their
productivity and increases the competitiveness of the facility.
The next most common retention incentive derives from federal funds
and is known as Community Development Block Grants (CDBG), which
are awarded annually by the U.S. Department of Housing and Urban
Development. These funds are in turn devolved to eligible local
communities (ironically called “non-entitlement” communities), which
are largely rural areas with populations of less than 50,000 people.4
Eligible local communities may use the CDBG funds to construct public
infrastructure improvements (e.g., roads, water, sewer) and conduct
training that is required to support a number of national objectives, one
of which is the retention of low-to-moderate-income individuals.5
Some states have their own grant funds that may support job retention.
For example, in Georgia, the One GA Authority may use grants to
support job retention in rural areas of the state.6
Projects that can
demonstrate that their benefits exceed the public costs will receive
public funding.
In addition to states, local communities may tap retention incentives.
Local communities in Pennsylvania may use Tax Increment Finance
(TIF) to encourage new capital investment and preserve jobs.7
While
48 of the 50 states have enacted TIF incentives, the Keystone state
has one of the most expansive TIF statutes in the country. The
Commonwealth permits its local communities to use TIF revenues to
float bonds and use proceeds to front-load funds for a project, to pay
for on- and off-site infrastructure that enables new investment, and to
purchase land and construct facilities.
To improve your prospects of obtaining an economic development
incentive, there are a few best practices to be aware of before
approaching states or local communities.
• First, perform an Economic Impact Study (EIS). As required by the
One GA Authority cited previously, a well-constructed and
thoughtful study will quantify the importance of a facility to the
community. Moreover, a thorough EIS will provide support to
political leaders who want to back the project.
• Second, as noted in the CDBG discussion above, look for retention
incentives that are targeted to the company’s geographic region.
• Third, start early. The process to obtain incentives, as evidenced
by the Carrier deal, can take many turns and require at least six
months to work through the required administrative channels.
• Finally, if your state or local community does not have an incentive
that neatly fits your factual circumstances, consider reaching out
to your legislative bodies or executive agencies to amend existing
policies or statutes.
To learn more about how we can help you to secure retention and other
related incentives, contact Greg Burkart, Managing Director, Site
Selection Business Incentives Advisory practice leader, at
+ 1 248 675 6959.
1
Gerry Dick, “More Details on Carrier Deal, Indiana’s Offer”, Inside INdiana Business
(12/1/16).
2
Matthew Dolan, “Amazon to Hire 1,000 for New Livonia Distribution Center”,
Detroit Free Press (12/20/16).
3
Florida’s Incumbent Worker Training Grant Guidelines for 2016-2017 may be found
at https://careersourceflorida.com/wp-content/uploads/2016/07/2016-2017_
IWTProgramGuidelines.pdf.
4
For general provisions, please see 24 CFR Part 570. For definition of “retained
jobs”, please see Part 570.208(a)(4)(ii), “Criteria for National Objectives”.
5
24 CFR Part 570.201 and 203.
6
GA Regulation 413-2.01, et seq.
7
53 P.S. Section 6930.1, et seq. Please see section 6930.3 for definition of eligible
“Project Costs” which includes capital, financing, real property assembly,
professional, administrative, relocation and organizational costs. Interesting the
statute also permits “reimbursement of prior expenditures made for any of these
eligible project costs.
4. Duff Phelps 4
Valuation Insights – First Quarter 2017
The Transaction Trail report is a biannual report that takes an in-depth
look at transaction and capital markets activities in Singapore, Malaysia
and Indonesia (the “region”), including mergers and acquisitions (MA),
private equity (PE)/venture capital (VC) investments and initial public
offerings (IPOs).
In 2016, the region had aggregate total deal activity valued at US$111.8
billion spread across 1,308 deals. Globally, more than 35,000 deals
valued at over US$3 trillion were registered in the same period. As
highlighted by Srividya Gopalakrishnan, Managing Director of Duff
Phelps’ Singapore office, “Asia has emerged as a strong player in the
MA arena, overtaking Europe, driven by large outbound acquisitions
by China, Singapore and other Asian countries in their ambition to
increase their global footprint.” Key findings from the report are
summarized below.
Region Breakouts
Singapore Remains at the Helm of Deal-Making in the Region
Singapore recorded a total of 800 deals (MA, PE/VC and IPOs) worth
US$88 billion for 2016, which compares with 685 deals (MA, PE/VC
and IPOs) worth US$103.8 billion for 2015. MA comprised the bulk of
the deal volume in Singapore, registering 684 deals valued at US$82.7
billion in 2016 compared to US$101.2 billion in 2015.
The continued momentum in deal volume was mainly attributable to
sizeable MA transactions by the Sovereign Wealth Funds (SWF),
GIC and Temasek Holdings in consortium as well as stand-alone
investments, complemented by other notable deals such as CMA
CGM’s acquisition of Neptune Orient Lines, Singapore Telecom’s
stake acquisition in Intouch Holdings and Qatar Investment Authority’s
acquisition of Asia Square Tower 1.
Outbound Deals Continue to Drive Singapore’s MA Deal Value
While Singapore MA deal volumes grew 16% in 2016, deal values
declined by 18% compared to the same period a year ago. In 2016,
there were 485 cross-border MA deals in Singapore registering
US$69.7 billion. The bulk of deal values came from 318 outbound deals
(Singapore-based companies or SWFs acquiring overseas companies)
worth US$57 billion, contributing to over 81.9% of the total deal value
in 2016 for total cross-border deals. Domestic deals contributed to
15.8% of total MA deal value, with 199 deals valued at US$13.0 billion.
The largest contributor to MA deal values in Singapore was the
Real Estate sector, which comprised close to 30% of deal values.
This sector has overtaken last year’s leader, the Technology sector,
which has moved to third place in 2016. Industrials contributed
approximately 19% to the deal values. Based on MA deal values,
the top 3 sectors (Real Estate, Industrials and Technology) accounted
for 65% of total deal values.
Highest Transacted Value of PE/VC Deals in Singapore in 2016,
Since 2012
PE/VC investments in Singapore companies for 2016 have continued
their upward trend to US$3.5 billion compared to US$2.2 billion,
US$2.4 billion and US$0.9 billion for 2015, 2014 and 2013, respectively.
Some of the notable PE/VC investments in 2016 were SoftBank
Group’s investment in GrabTaxi, valued at US$750.0 million; investment
in BOC Aviation Pte Ltd by China Investment Corporation and other
investors, valued at US$572.0 million; GIC, Bain Capital and Advent
International’s US$350.0 million investment into Quest Global
Engineering Pvt Ltd; and Baring Private Equity’s US$320.1 million
privatization of Interplex Holdings Ltd. Most of the notable deals were
minority stake investments, unlike in the last few years, which saw more
buyouts.
Significant Pick-Up in the Singapore IPO Market
The Singapore IPO market has seen improvement in activity in 2016
compared to 2015, with a total of 16 IPOs constituting US$1.9 billion
raised on the Singapore Exchange, compared with 13 IPOs in 2015
raising US$450.7 million. However, this is lower than the capital
raised in previous years. The largest contributor to Singapore
Exchange listings was Frasers Logistics Industrial Trust, which
raised approximately US$664 million.
Bounce Back in Deal Activity in Malaysia and Indonesia
Malaysia and Indonesia recorded 413 and 178 deals (MA, PE/VC and
IPOs) worth US$15.6 billion and US$10.8 billion, respectively, for 2016.
This compares to 360 and 143 deals worth US$9.7 billion and US$2.8
billion for Malaysia and Indonesia, respectively, for 2015.
Robust Pipeline
Looking ahead, there are over 50 deals in the pipeline in the region
with potential deal value of over US$16 billion, based on information
disclosed. The pipeline and possible deals include the proposed
acquisition of InterOil Corp by Exxon Mobil Corp (potential deal value of
US$2.5 billion), the proposed acquisition of Super Group Ltd by Jacobs
Douwe Egberts B.V. (potential deal value of US$1.0 billion), as well as
the proposed acquisition of ARA Asset Management (potential deal
value of US$688 million).
To learn more about this report, contact Srividya Gopalakrishnan,
Managing Director, at +65 6589 9190.
International in Focus: Duff Phelps Publishes Transaction Trail Report
on MA and Capital Markets Activity in Southeast Asia
Singapore witnesses sustained deal activity with 800 Deals in 2016 Worth US$88 billion
Asia Pacific
Europe
Middle East
Asia
Latin America
Carribean
North America
41%
30%
24%2%
3%
52%
25%
18%3%
2%
by Volume by Value
(US$ Mm)
5. Duff Phelps 5
Valuation Insights – First Quarter 2017
The Delaware Court of Chancery recently declined to accept the deal
price in a merger dispute as evidence of fair value, relying instead on
the value resulting from a discounted net income analysis, a method
both sides’ experts used, with varying emphasis.
The dispute arose out of the 2014 merger of Farmers Merchants
Bancorp of Western Pennsylvania (FM), a small community bank, with
NexTier. The Court found that FM pursued the merger at the request
of the Snyder family, which “stood on both sides of the transaction”
because it controlled both FM and NexTier. There was no auction,
and even though there was a special committee, “the record does not
inspire confidence that the negotiations were truly arms-length.” The
chairman of the FM board who appeared to serve as chairman of the
special committee “appeared to be working toward a price that would
meet the Snyders’ objective to recoup their original investment in
NexTier.” As such, the Court gave no weight to the merger price.
Court rejects transaction analysis: The petitioners’ expert based his
conclusion solely on a comparable transactions analysis. The Court
rejected the comparable analysis because the expert failed to account
for any synergistic value captured in the eight comparable transactions.
“The Court’s task in a Section 262 appraisal action is to determine the
going concern value of the enterprise as of the merger date exclusive
of any element of value – such as the value of achieving expected
synergies – from accomplishment of the merger.”
In terms of the discounted net income analyses, the Court validated
the analysis the respondent’s expert performed by adopting all of the
expert’s inputs (projected net income, risk-free rate, equity risk
premium, size premium, growth rate, excess capital) for its own
valuation, excepting the beta variable. “In the following analysis, I [the
Judge] evaluate each of these variables in turn with an eye to utilizing
data in the Duff Phelps 2014 Valuation Handbooks where possible
to maintain consistency in the analysis,” citing the 2014 Valuation
Handbook – Guide to Cost of Capital and the 2014 Valuation
Handbook – Industry Cost of Capital.
The Court cited data contained in the 2014 Valuation Handbook–
Industry Cost of Capital in arriving at its own concluded beta. The
Court found that overall, the respondent’s expert’s analysis better
satisfied the demand for consistency and, as such, was more reliable.
Dunmire v. Farmers Merchants Bancorp of W. Pa., 2016 Del. Ch.
LEXIS 167 (Nov. 10, 2016).
Spotlight: Delaware Court of Chancery cites
Duff Phelps Valuation Handbooks
PRE-RELEASE ORDER NOW – RESERVE YOUR COPY
2017 Valuation Handbook
U.S. Guide to Cost of Capital
You can now place a pre-release order for the Duff Phelps 2017 Valuation
Handbook – U.S. Guide to Cost of Capital (John Wiley Sons, Inc.). This invaluable
handbook and its online companion application, the Risk Premium Toolkit, provide U.S.-
based valuation data to help finance professionals value equity securities and assess
the feasibility of merger and acquisition transactions and other strategic investments.
Starting with the 2017 editions, the names of the four books have been changed to
Valuation Handbook – U.S. Guide to Cost of Capital, Valuation Handbook – U.S.
Industry Cost of Capital, Valuation Handbook – International Guide to Cost of Capital,
and Valuation Handbook – International Industry Cost of Capital.
Learn more at www.duffandphelps.com/costofcapital
6. Duff Phelps 6
Valuation Insights – First Quarter 2017
North American Industry Market Multiples
As of December 31, 2016
An industry must have a minimum of 5 company participants to be calculated. For all reported multiples in the U.S. and Canada, the average number of companies in the
calculation sample was 80 (U.S.), and 25 (Canada); the median number of companies in the calculation sample was 41 (U.S.), and 11 (Canada). Sample set includes publicly-traded
companies (private companies are not included). Source: Data derived from Standard Poor’s Capital IQ databases. Reported multiples are median ratios (excluding negatives).
MVIC = Market Value of Invested Capital = Market Value of Equity plus Book Value of Debt. EBIT = Earnings Before Interest and Taxes for latest 12 months.
EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization for latest 12 months.
Market Value
of Equity to
Net Income MVIC to EBIT
MVIC to
EBITDA
Industry U.S. Canada U.S. Canada U.S. Canada
Energy 16.5 24.9 20.6 26.6 15.0 15.8
Energy Equipment Services 16.1 21.4 17.9 21.0 14.6 13.8
Integrated Oil Gas — — — — 19.9 —
Materials 19.9 16.0 16.1 17.2 10.3 10.0
Chemicals 21.1 — 16.5 17.5 11.0 13.0
Diversified Chemicals 17.6 — 15.0 — 11.3 —
Specialty Chemicals 23.3 — 16.4 — 11.8 —
Construction Materials 26.1 — 20.2 — 11.2 7.7
Metals Mining 12.7 15.9 16.2 24.6 10.2 10.4
Paper Forest Products 17.9 11.5 14.4 12.3 8.6 7.5
Industrials 21.8 17.5 16.3 16.7 11.5 11.7
Aerospace Defense 19.0 16.8 15.9 16.8 12.6 10.8
Industrial Machinery 25.3 21.1 19.2 17.0 13.8 12.6
Commercial Services Supplies 22.9 9.9 16.0 19.8 10.8 8.9
Road Rail 19.5 18.4 15.4 15.7 8.1 11.7
Railroads 19.6 — 14.0 — 10.7 —
Consumer Discretionary 18.5 17.3 14.8 14.8 10.5 11.2
Auto Parts Equipment 15.9 8.1 11.3 7.6 7.9 5.3
Automobile Manufacturers — — — — 12.0 —
Household Durables 13.1 — 13.4 — 11.5 —
Leisure Equipment Products 17.8 — 12.7 — 9.6 —
Textiles, Apparel Luxury Goods 17.5 — 13.8 — 11.4 —
Restaurants 26.9 19.9 18.0 14.7 10.8 18.8
Broadcasting 15.9 — 13.3 22.2 10.0 11.7
Cable Satellite 26.3 — 20.5 13.9 13.9 8.0
Publishing 32.9 — 14.8 — 10.6 —
Multiline Retail 16.4 — 11.5 — 10.0 —
Market Value
of Equity to
Net Income MVIC to EBIT
MVIC to
EBITDA
Industry U.S. Canada U.S. Canada U.S. Canada
Consumer Staples 21.2 23.3 15.9 16.2 12.6 11.4
Beverages 25.9 — 20.2 19.6 16.9 12.6
Food Products 20.6 24.9 15.9 15.0 13.4 10.9
Household Products 21.4 — 16.1 — 12.6 —
Health Care 25.9 28.3 18.9 21.5 14.3 14.5
Health Care Equipment 33.7 — 22.8 — 17.4 —
Health Care Services 23.9 — 15.6 — 10.7 —
Biotechnology 27.7 30.7 21.0 — 23.2 19.1
Pharmaceuticals 29.0 25.6 16.6 20.4 14.0 27.7
Information Technology 26.4 24.1 21.9 22.9 16.8 17.0
Internet Software Services 22.8 29.0 25.7 20.7 20.1 13.8
IT Services 25.9 26.4 18.5 25.8 13.9 14.2
Software 32.1 24.8 27.5 39.7 21.4 20.4
Technology Hardware
Equipment
23.7 17.8 18.4 13.9 13.4 13.3
Communications Equipment 24.8 27.9 19.1 15.1 15.9 14.1
Computers Peripherals 18.7 — 13.6 — 11.0 —
Semiconductors 30.9 — 38.0 — 21.7 —
Telecommunication Services 21.4 — 20.8 — 9.3 9.2
Integrated Telecommunication
Services
16.5 — 17.1 — 6.9 —
Wireless Telecommunication
Services
50.4 — 27.2 — 9.7 —
Utilities 22.8 20.2 18.6 25.0 11.6 13.1
Electric Utilities 22.7 — 17.7 — 10.8 —
Gas Utilities 23.2 — 17.7 — 11.5 —
Market Value
of Equity to
Net Income
Market Value
of Equity to
Book Value
Industry U.S. Canada U.S. Canada
Financials 18.2 12.8 1.3 1.4
Commercial Banks 18.7 12.9 1.3 1.7
Investment Banking and Brokerage 18.4 — 1.6 —
Insurance 15.9 13.7 1.3 1.4
Industry Market Multiples are now available online!
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7. Duff Phelps 7
Valuation Insights – First Quarter 2017
European Industry Market Multiples
As of December 31, 2016
An industry must have a minimum of five company participants to be calculated. For all reported multiples in Europe, the average number of companies in the calculation sample
was 89 and the median number of companies in the calculation sample was 37 Sample set includes publicly-traded companies (private companies are not included). Source: Data
derived from Standard Poor’s Capital IQ databases. Reported multiples are median ratios (excluding negatives). MVIC = Market Value of Invested Capital = Market Value of
Equity plus Book Value of Debt. EBIT = Earnings Before Interest and Taxes for latest 12 months. EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization for
latest 12 months.
Market Value
of Equity to
Net Income
MVIC to
EBIT
MVIC to
EBITDA
Industry Europe Europe Europe
Energy 10.9 16.1 9.2
Energy Equipment Services 12.1 16.2 9.9
Integrated Oil Gas 30.9 22.5 11.2
Materials 16.6 15.0 9.3
Chemicals 19.9 15.6 9.7
Diversified Chemicals 21.4 15.1 8.6
Specialty Chemicals 20.9 16.1 12.3
Construction Materials 16.8 16.4 9.4
Metals Mining 14.6 16.5 9.3
Paper Forest Products 13.4 13.7 8.3
Industrials 17.5 15.7 10.8
Aerospace Defense 20.8 20.6 12.6
Industrial Machinery 19.6 16.4 11.6
Commercial Services Supplies 19.0 15.8 10.2
Road Rail 12.9 13.9 7.6
Railroads 12.8 19.1 8.0
Consumer Discretionary 16.4 14.8 10.5
Auto Parts Equipment 14.3 12.5 7.5
Automobile Manufacturers 7.8 14.8 11.2
Household Durables 14.0 12.8 9.8
Leisure Equipment Products 18.2 15.9 10.8
Textiles, Apparel Luxury Goods 18.7 15.4 11.3
Restaurants 18.3 14.9 11.2
Broadcasting 17.9 15.0 11.1
Cable Satellite 31.0 24.0 11.7
Publishing 13.1 15.1 10.1
Multiline Retail 20.7 13.0 11.7
Consumer Staples 18.3 16.4 11.4
Beverages 21.4 16.6 11.4
Food Products 17.1 15.3 10.4
Household Products 17.8 13.8 10.5
Market Value
of Equity to
Net Income
MVIC to
EBIT
MVIC to
EBITDA
Industry Europe Europe Europe
Health Care 24.5 21.5 15.9
Health Care Equipment 27.2 21.5 16.2
Health Care Services 13.6 15.3 11.6
Biotechnology 38.6 30.5 25.9
Pharmaceuticals 22.8 19.1 14.9
Information Technology 21.9 17.7 13.4
Internet Software Services 25.4 22.4 20.0
IT Services 18.5 13.7 11.5
Software 27.6 21.6 17.9
Technology Hardware
Equipment
20.7 16.5 11.4
Communications Equipment 15.9 16.8 11.2
Computers Peripherals 18.7 15.3 11.9
Semiconductors 21.8 24.7 14.4
Telecommunication Services 18.7 16.9 9.6
Integrated Telecommunication
Services
18.1 16.8 8.3
Wireless Telecommunication
Services
— 17.3 10.1
Utilities 14.3 18.1 9.7
Electric Utilities 14.2 16.0 9.1
Gas Utilities 12.6 12.7 8.7
Market Value
of Equity to
Net Income
Market Value
of Equity to
Book Value
Industry Europe Europe
Financials 12.3 1.0
Commercial Banks 9.9 0.7
Investment Banking and Brokerage 19.5 1.6
Insurance 12.1 1.1
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