FairValue Advisors

04/11/2025

🚨 U.S. GDP Update – What You Need to Know
Published April 2025 | Based on Q4 2024 Data

The U.S. economy grew at an annual rate of 2.4% in the fourth quarter of 2024, slightly up from previous estimates. Here’s a breakdown of what’s driving growth — and what could signal a slowdown.

💡 Key Highlights:
🔹 Consumer spending was the strongest contributor to growth. People spent more on health care, travel, and recreational goods like electronics and video equipment.
🔹 Residential investment picked up after slowing down earlier in the year — a positive sign for housing and construction-related businesses.
🔹 Corporate profits increased by 5.4% in Q4 — a rebound after a small dip in the previous quarter. Profits were up in financial services, manufacturing, and overseas operations.
🔹 Inflation remained moderate. The core inflation measure (excluding food and energy) rose by 2.6%, showing signs of stability.
🔹 Government spending also contributed to growth, especially at the state and local level through infrastructure and education-related investment.

⚠️ What to Watch:
▪️ Business investment declined, especially in equipment like computers and vehicles.
▪️ Inventories fell, which may signal slower production planning or uncertainty in demand.
▪️ Exports dipped, while imports declined more sharply — giving GDP a temporary lift but reflecting softer global trade.

🧠 Why This Matters for Business Valuation:
For business owners, legal advisors, and financial decision-makers, these trends affect everything from discount rates to industry comps. Stability in consumer demand is encouraging, but investment slowdowns and shifting sector performance should be considered carefully.

📣FairValue Advisors delivers valuations that reflect market realities. Whether you're navigating a deal, resolving a dispute, or preparing for tax reporting, we're ready to support your next move.

Send a message to learn more

04/01/2025

📉 Could credit ratings—or credit risk more broadly—be influencing how a business is valued?

In many cases, yes. Even when a company isn’t formally rated by an agency like Moody’s or S&P, the underlying risk profile still plays a role in shaping cost of capital, financing options, and ultimately, business value.

We recently published an article that explores:
-What credit ratings mean and how they’re structured
-How credit risk can influence WACC, valuation multiples, and investor perception
-What appraisers look for when formal ratings aren’t available (as is common with private companies)
-Why credit considerations often matter more than people think in litigation, M&A, and strategic planning

At FairValue Advisors, our goal is to offer insight into the factors that quietly—but meaningfully—impact how value is measured.

🔗 Read the full article:
https://www.linkedin.com/posts/fairvalue-advisors_businessvaluation-creditrisk-privatecompanies-activity-7312844726976606209-F1Vm?utm_source=share&utm_medium=member_desktop&rcm=ACoAACAD9kwBGfPaAJmA4SftVrhcT4Fh6booF0I

📉 Could credit ratings—or credit risk more broadly—be influencing how a business is valued? In many cases, yes. Even when a company isn’t formally rated by…

03/26/2025

🎉 New Article Drop from Melanie Perez, CVA at FVA 🎉

The use of AI tools like ChatGPT, Gemini, and Copilot in business valuation is quickly becoming one of the most discussed—and debated—topics in our field.

In her latest article, Melanie explores how valuation professionals are navigating the ethical, legal, and disclosure implications of AI-assisted work. The piece reflects a growing awareness across the profession of how evolving technology intersects with trusted valuation standards like those from NACVA, ASA, and USPAP.

📖 Read the article here
🧠 It's a thought-provoking read for anyone working in litigation support, expert testimony, or business appraisal.

While Melanie is a valued professional at FVA, this article reflects her personal research and perspective. Our partners and team may hold a range of views on this rapidly evolving issue.

We’re proud to see our team contributing meaningfully to the broader valuation conversation—especially on topics that are shaping the future of the profession. 💼

The integration of artificial intelligence (AI) tools such as ChatGPT, Gemini, and Copilot into business valuation practices has elicited varied responses from professionals and the judiciary. While these technologies offer potential efficiencies, their application raises significant considerations

03/24/2025

📄 Case Summary: Business Valuation in IP Disputes – Lessons from Florida Federal Court

In the recent case US Thrillrides, LLC & Polercoaster, LLC v. Intamin Amusement Rides Int. Corp. Est. (M.D. Florida, Feb. 2025), the court addressed several key issues in an intellectual property and contract dispute involving a unique roller coaster design.

🔧 Background: US Thrillrides and Polercoaster (Florida-based) accused Intamin of using their confidential, copyrighted "Polercoaster" design in a competing project overseas. The lawsuit included claims of copyright infringement, breach of a confidentiality agreement, and misappropriation of trade secrets.

💼 Business Valuation at Issue: Both sides brought in damages experts to estimate losses tied to alleged misuse of IP. However, both experts were excluded under Daubert standards—something that should catch the attention of valuation professionals and litigators alike.

🚫 Why the Experts Were Excluded:
➡️ The Plaintiffs' expert relied on a valuation of the company that was not specific to the alleged infringement and did not isolate damages caused by Intamin’s actions.
➡️ The Defendant’s expert provided a rebuttal analysis that the court found lacked sufficient methodology and support, and did not address damages directly.
➡️ The court ruled that neither opinion would assist the jury in understanding the actual damages in dispute.

⚖️ Overall Ruling: The court granted summary judgment in favor of Intamin on multiple claims, but allowed the breach of NDA and copyright infringement claims to proceed. However, with both experts excluded, plaintiffs may now face challenges in proving damages at trial.

📣 Takeaway for Attorneys & CFOs: This case is a reminder that damages opinions tied to IP or breach claims must be:
✔️ Tied directly to the alleged harm,
✔️ Grounded in clear methodology, and
✔️ Defensible under Daubert standards.

👉 If you’re handling IP disputes or need support on complex valuation matters, especially where litigation is involved, let’s connect.

03/21/2025

Is Your Business Prepared for the Financial Impact of Recent Storms?

The recent surge in tornados, hail, high-speed winds, and frost advisories has disrupted operations for many businesses. Beyond the immediate physical damage, these events can have long-term implications for your company’s financial health and overall value.

At FairValue Advisors, we help business owners assess the true impact of these events — and make informed, strategic decisions moving forward.

Here’s how a business valuation can support you during this time:

✅ Insurance Claims Support – A defensible valuation can help quantify damages related to lost income, equipment failure, and operational downtime — especially when insurance coverage is limited or under dispute.

✅ Assessment of Uncovered Losses – When out-of-pocket repair or replacement costs exceed coverage, a valuation helps evaluate whether it makes financial sense to rebuild, pivot, or plan an exit.

✅ Accelerated Exit Planning – For some owners, the increased operational risk or long-term capital requirements may lead to an earlier-than-expected exit. Understanding your company’s current value is key to protecting your investment.

✅ Stronger Strategic Planning – Whether you're planning to reinvest, restructure, or sell, an updated valuation gives you the clarity to move forward confidently.

If recent weather events have left you questioning what’s next, a business valuation is the right place to start.

📩 Reach out to FairValue Advisors today to discuss how we can support your recovery and long-term planning.

03/07/2025

🚨 The Pricing Trap: Are You Charging Enough? 🚨

One of the biggest mistakes business owners make? Underestimating costs.

It’s easy to think, “I just need to cover my expenses and keep the lights on.” But here’s the truth: Pricing at survival level means you’re never actually growing.

❌ What You’re Probably Forgetting in Your Costs:
💰 Your Time – If you’re not paying yourself a real wage, you’re already losing.
📦 Hidden Expenses – Software, insurance, equipment repairs—it all adds up.
📉 Inflation & Market Shifts – Materials, labor, and overhead don’t stay the same forever.
🔄 Profit Margin – If you’re only breaking even, you’re one slow month away from disaster.

✅ How to Price Smarter:
🔹 Market Value First – Charge based on what your service or product is worth, not just your cost.
🔹 Factor in Growth – Your pricing should allow for reinvestment, not just survival.
🔹 Test & Adjust – If you’re always busy but barely profitable, your prices might be too low.

🚀 You’re not in business to scrape by—you’re in it to thrive. Price accordingly.

Have you ever realized you were undercharging? What happened when you raised your prices? Let’s talk. 👇

02/28/2025

💰 Should Your Business Buy That Asset? 🤔

Not every big purchase is a smart investment. 🚨 From yachts to real estate, does it add value or just drain cash flow?

Let’s separate fact from myth:
✅ Fact: Assets should improve revenue, efficiency, or long-term value.
❌ Myth: Every tax-deductible purchase is a good one.

Key Takeaways:
📉 Depreciating assets can sometimes hurt your bottom line.
📊 Book value ≠ market value—adjust for real-world conditions.
💡 Business valuation isn’t just about tangible assets—intellectual property, brand strength, and contracts matter too.

📩 Before making a big financial move, ensure it’s the right one. DM us to discuss how a valuation can help!

02/27/2025

🚀 How Much Is Your Business REALLY Worth? 🚀

Business valuations aren’t just for when you’re selling—there are 10 key reasons why every business owner should know their company’s worth.

📊 Are you planning to:
✅ Buy or sell a business?
✅ Attract investors?
✅ Plan for the future (exit strategy, estate planning, ESOPs)?
✅ Secure financing or resolve legal matters?

A business valuation provides clarity, confidence, and leverage in critical financial decisions.

💡 Swipe through the slides to learn more!

👇 Have you ever had your business valued? What was your biggest takeaway? Drop a comment below!

12/11/2023

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