Raymond Rath of Globalview Advisors presented on the topic of “Business Valuation Essentials and Current Developments” to Opus Bank in Irvine on October 18, 2017. The audience for the presentation included loan officers, management and appraisal department personnel of Opus Bank (see https://www.opusbank.com/). Opus Bank is an FDIC insured California-chartered commercial bank with its headquarters in Irvine, California. Opus Bank had $7.3 billion of total assets, $5.1 billion of total loans, and $6.1 billion in total deposits as of September 30, 2017. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank.

Mr. Rath’s presentation focused on valuation issues of interest to a bank or other credit granting institution. Topics discussed included discussion of:

  • Differences between real estate and business related valuations;
  • Elements of the Income Approach given the importance of future cash flows in credit granting decisions;
  • Determination of appropriate valuation methods based on the stage of development of an entity as set forth in the AICPA Accounting and Valuation Guide entitled Valuation of Privately-Held Company Equity Securities Issued as Compensation (see https://www.aicpa.org/);
  • Discussion of adjustments needed to determine the earnings and cash flow generating capacity of a business; and
  • Discussion of recent performance and documentation requirements associated with the Mandatory Performance Framework released in connection with the Certified in Entity and Intangible Valuations designation (see https://ceiv-credential.org/).

For further information, please contact Michael Haghighat at 949.475.2801 or mhaghighat@globalviewadvisors.com or Raymond Rath at 949.475.2808 or rrath@globalviewadvisors.com.