Publicly Traded Blockchain Companies: Understanding Risk for a New Market

By: Daniyal Inamullah, CFA Without the advantage of being part of a reputable VC or Angel group, or actively working on early-stage company investments, public market information offers retail investors with the best knowledge to invest in micro and small cap companies. Due to the asymmetric information and profit potential associated with any new [...]

By |2018-11-06T15:09:20+00:00October 15th, 2018|Acquisitions, Blockchain, Financial, Presentations, Select Articles, Valuation|Comments Off on Publicly Traded Blockchain Companies: Understanding Risk for a New Market

Earnings Quality is More than Adjusted EBITDA

Buyers perform exhaustive pre-acquisition due diligence of target companies that spans financial, tax, legal, IT, operational, marketing, HR, and other matters.  Central to financial due diligence is the target’s earnings quality.  Discussion of earnings quality usually focuses solely on recent historical EBITDA, normalized by making various adjustments.  Of course, normalized EBITDA is critical information. [...]

By |2018-10-17T13:32:25+00:00October 5th, 2018|Acquisitions, Financial, International, Select Articles, Taxes|Comments Off on Earnings Quality is More than Adjusted EBITDA

Fair Market Value to Fair Value reconciliation in Machinery and Equipment Appraisals

Fair Market Value (“FMV”) is a proposed opinion of value of an asset, supported by sound research and generally accepted valuation methods, that could be received in the market. Whereas Fair Value (“FV”) is the realized value of a piece of equipment upon the actual sale of an asset. In Machinery and Equipment appraisals (“M&E”), [...]

By |2018-09-19T10:44:25+00:00September 19th, 2018|Acquisitions, Financial, Select Articles, Valuation|Comments Off on Fair Market Value to Fair Value reconciliation in Machinery and Equipment Appraisals

Blockchain and Its Potential Use in Accounting

Blockchain, meet accounting.  I think you two will have a great relationship. You were practically made for each other. For every debit, there must be a credit. The foundation of accounting works so well that there haven’t been significant changes since Luca Pacioli's "double-entry" system was documented in the 1400's. Getting to its basic definition, [...]

By |2018-10-15T18:01:21+00:00September 17th, 2018|Blockchain, Financial, Select Articles, Taxes|Comments Off on Blockchain and Its Potential Use in Accounting

Valuation of Complex Securities

Intrinsic has assisted many publicly traded (and privately-owned) clients over the years in the valuation of complex securities for financial reporting purposes under GAAP and IFRS regulations. “Complex Securities” in this context refers to variations of warrants, convertible debt, restricted stock units (“RSU”) and performance shares based around a total shareholder return (“TSR”) mechanism. In [...]

By |2018-08-15T11:50:33+00:00August 15th, 2018|Featured, Select Articles, Valuation|Comments Off on Valuation of Complex Securities

Facebook’s Nosedive: A Study on Significant Share Price Declines and Subsequent Reversion to the Mean

The recent decline in Facebook’s stock after the company’s third quarter earnings release on July 25, 2018 prompted an analysis of how rare this occurrence is and the prevalence of mean reversion theory. At the time of this writing, Facebook’s common stock is down roughly 20% after the close of markets. Method To analyze the [...]

By |2018-07-29T12:47:53+00:00July 29th, 2018|International, Select Articles|Comments Off on Facebook’s Nosedive: A Study on Significant Share Price Declines and Subsequent Reversion to the Mean

Attempts to Escape

For ten years Intrinsic’s managing partners, Alex Hodgkin and Josh Cashman have participated in the Escape from Alcatraz triathlon along with friends and colleagues from across the country. The participants of this small cohort include a handful of folks from east of the Mississippi (Team East) and another group of people from west of the [...]

By |2018-07-20T15:39:39+00:00July 20th, 2018|Personal, Select Articles|Comments Off on Attempts to Escape

Flexibility in Startup Valuation

At times, valuation projects can be straight forward; other times, not so much. Accepted valuation methodologies are well-developed in an academic and theoretical sense, but the real-world application often gets messy. This sentiment is perfectly explained by every valuation professional’s favorite quote: “Valuing a business is part art and part science.” -Warren Buffet As technology [...]

By |2018-05-22T18:56:15+00:00May 22nd, 2018|Select Articles, Valuation|Comments Off on Flexibility in Startup Valuation

Fair Market Value – Is The All Cash Presumption Always the Right Answer?

Author: Alex Hodgkin Date: April 24, 2018 In many of the valuation exercises we undertake, particularly the ones related to tax compliance, we are beholden to using a standard of value known as “fair market value”. Many of you reading this note may not know what a standard of value is, so here is the [...]

By |2018-06-20T18:47:34+00:00April 24th, 2018|Featured, Financial, Select Articles|Comments Off on Fair Market Value – Is The All Cash Presumption Always the Right Answer?

The Other Alpha

I’ve been told by some old timers that the valuation business is almost perfectly hedged. What I mean by that is there is always some niche within the profession that is experiencing growth while others may be contracting. During the early phase of IFRS and the fair value expansion, I was gushing to this particular [...]

By |2014-01-15T18:04:44+00:00April 1st, 2011|Featured, Select Articles|Comments Off on The Other Alpha