Chuck Faunce, Director, Business Valuation & Litigation Support at Gorfine, Schiller & Gardyn, discusses the impact of inflation on business valuation, and what can be done to counter it.
The rise in inflation has affected pretty much every aspect of our lives these days. However, it is especially impactful when it comes to business valuation.
To better guide business owners in today’s uncertain climate, Chuck Faunce recently authored a guest article for Mergers & Acquisitions Magazine titled, “The Impact of Inflation on the Value of Your Business and What You Can Do About It.”
The article identifies a simple structure that dealmakers can use as a starting point to understand the risk inflation poses to cash flows to portfolio or target businesses by considering its effects on a business’ marketing, operating and financial performance.
In this podcast, Chuck discusses his article. Here are the key highlights:
- A high-level overview of what Chuck covered in his recent Mergers & Acquisitions article. (:35)
- How the rise in inflation can impact the value of a business. (2:00)
- How dealmakers can better understand the risks posed by these economic changes. (3:49)
- What businesses can do to get a better handle on inflation and increase their value. (4:40)
- About GSG’s business valuation services. (7:06)