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Detecting Deception: Facial Expressions

Detecting Deception: Facial Expressions

Written in collaboration with Janine Driver, author of You Can’t Lie to Me THE FACIAL FAUX PAS Now that you have gathered your intel – you have your subject’s baseline squared away and you’ve peeked behind their words – it’s time to focus on ...
Detecting Deception: Common Myths

Detecting Deception: Common Myths

Written in collaboration with Janine Driver, author of You Can’t Lie to Me THE MASTER OF DECEPTION Bernie Madoff infamously stole $65 billion reflecting 4,900 client accounts in a Ponzi scheme. All told, his investors lost approximately $20 ...
Working Capital Changes in a Free Cash Flow Forecast– Part III

Working Capital Changes in a Free Cash Flow Forecast– Part III

Part II of my working capital blog identified methods often used by business appraisers when forecasting working capital. In this installment, I will present some additional thoughts regarding this topic. Depending on the facts and circumstances, it is typically appropriate to consider the company’s historical working capital ratios and industry working capital metrics at the composite level (e.g. total working capital), as well as each separate component of working capital (e.g. accounts receivable, inventory, accounts payable, etc.).
Working Capital Changes in a Free Cash Flow Forecast– Part II

Working Capital Changes in a Free Cash Flow Forecast– Part II

Part I of my working capital related blog addressed the impact on free cash flow of changes in current assets and changes in current liabilities, which are the two components that comprise working capital (calculated as current assets minus current liabilities). The combined impact of changes in current assets and changes in current liabilities equals the impact of changes in working capital on free cash flow. Part II of this blog identifies methods often used by business appraisers when forecasting working capital.
The Value of Advanced Data Analytics

The Value of Advanced Data Analytics

A picture says a thousand words – and nothing tells a story better than electronic data. FSS has successfully used advanced data analytics for years to ferret out the truth and bring a story to life through data visualization, from supporting ...
Capital Expenditures, Depreciation and Amortization in a Cash Flow Forecast

Capital Expenditures, Depreciation and Amortization in a Cash Flow Forecast

When valuing a private operating company, an appraiser is likely to use an income approach, either as the main valuation method or in conjunction with another method. Whether the appraiser capitalizes cash flows in a capitalized cash flow (“CCF”) model or uses forecasts of future cash flows in a discounted cash flow (“DCF”) model, they have incorporated both explicit and implicit assumptions into the cash flows used in their model.