Overview It started sometime last year, during the fourth quarter.  The morning business show Squawk Box began to mention “ESG” on a daily basis.  Sometimes it was one of the hosts, sometimes it was a guest. Then. there were two inflection points that marked a higher level of discourse.  First, on December 17, 2019, SEC…

Print Friendly, PDF & Email

Executive Summary Transaction Volume Shrinks Only 31 transactions were reported in Q2 2020, bringing the total reported transactions in 2020 to 113. Size Premium Size became an even greater pricing consideration for the middle market as transaction multiple variances widened for acquisition targets above and below $50 million. Debt Usage Decline In Q2 2020, total…

Print Friendly, PDF & Email

Executive Summary Issue It takes time and money to go through a Chapter 11 restructuring, so going through it twice in a couple of years is unwise and inefficient.  Recently, it has been an issue with companies operating in the energy complex.  The challenges and complexities of energy markets make reorganization plans hard to properly…

Print Friendly, PDF & Email

Executive Summary Issue There are three primary drivers that must be considered when looking at oil and gas prices.  First, they are commodities, and move with the complex economics of global supply and demand.  Second, they are very volatile.  And third, they can be significantly influenced by global, geopolitical factors. Challenge The challenge for anyone…

Print Friendly, PDF & Email

Executive Summary Issue The term Environmental, Social & Governance, commonly called “ESG,” is not a new concept.  It was a hot topic before the COVID pandemic, in discussions to measure and value how companies engaged in sustainable and societally beneficial activities.  It will return as a topic across the business, regulatory, and investment communities again…

Print Friendly, PDF & Email

Executive Summary Valuations Heightened The simple average Enterprise Value (EV) to EBITDA multiple of 7.4x for Q1 2020 was marginally higher than the previous four quarters. This was the net result of a shift in sentiment considering size and industry factors. Size Premium Size became an even greater pricing consideration for the middle market as…

Print Friendly, PDF & Email

Executive Summary The Issue: Companies are facing cash shortfalls as they struggle to reopen from the COVID-19 lockdown.  Companies facing short-term liquidity challenges can seek new cash sources, such as the government’s Payroll Protection Program “PPP” or a bank line-of-credit.  However, certain companies may never achieve the revenue and profitability necessary to remain viable as…

Print Friendly, PDF & Email

ValueScope, Inc. is excited to announce that Tom McNulty joined the firm on April 27, 2020 as a Principal and Managing Director who will launch our Houston Office.  Tom’s responsibilities include financial consulting, valuation analysis, transaction and dispute advisory, and expert testimony.  In addition to serving as the Managing Director of the Houston office, Tom…

Print Friendly, PDF & Email

It has certainly been a rough couple of weeks with the recent fall off in the stock market and the shutdown of many businesses, but there may be a silver lining for people who intend to gift in the near future.  The recent decline in market valuations provides an opportunity to gift at lower values,…

Print Friendly, PDF & Email

In financial markets, infrequent or rare events are referred to as “Black Swan” events.  The term “Black Swan” was popularized by Nassim Nicholas Taleb in his 2007 book, The Black Swan:  The Impact of the Highly Improbable.  Taleb describes Black Swan events as possessing three key attributes: Extremely rare Severe impact Obvious in hindsight Such…

Print Friendly, PDF & Email

Following are excerpts of some of the key energy “themes” for the US in 2020, taken from a recent CreditSuisse energy research report [1]: E&P companies are evolving from growth-oriented to more capital disciplined and free cash flow generating entities; [2] Utilities will continue to transform into a lower-carbon and higher tech industry as renewable…

Print Friendly, PDF & Email

What is Information Asymmetry? In 1970, George Akerlof, an economist who is currently a professor at the McCourt School of Public Policy at Georgetown University, released what is now a famous paper, “The Market for Lemons: Quality Uncertainty and the Market Mechanism.”[1]  The paper examines the market for used cars, and the impact that information…

Print Friendly, PDF & Email

The oil price crash of 2015 and 2016 naturally led to numerous financial difficulties for many oil companies.  Following a partial rebounding of prices, oil companies rushed to produce by borrowing significantly.  This has led to a “debt wall” with scheduled maturities rising sharply over the next few years.[1] Many companies will have difficulty paying…

Print Friendly, PDF & Email

Investors and operators are now required to consider a portfolio of aging wells that have been drilled, but uncompleted (“DUCs”).  Delaying a completion of a previously drilled well, by as many as four years, has “little effect” on the initial production level, according to a new study by US Energy Information Administration (EIA). The study…

Print Friendly, PDF & Email

During the second quarter of 2019, the U.S. economy grew at an annual rate of 2.0% over the prior quarter.  Household spending has been a primary driver of growth, and the economy continues to perform strongly despite slowing global growth and headwinds from trade disputes. Overview of the U.S. Economy According to the third estimate…

Print Friendly, PDF & Email
Page 1 of 71 2 3 7

Subscribe to receive our latest Blog Posts and White Papers!

* indicates required



Print Friendly, PDF & Email
© 2018 ValueScope Inc. – Measure | Defend | Create