The Economic Department of Barsky, Berger & Co. CPA provides services in the field of valuations of companies / businesses and/or assets, economic feasibility analysis and more.

Valuation, as it is referred to – an assessment and not an accurate calculation – is based inherently on the use of accepted economic formulas. The values ​​taken into account are based on actual data which was included in the Profit & Loss Statements of the business in recent years as well as on estimated profit & loss data forecast for the future, based on past experience; and the current and forecast situation of the industry in which the business operates, and the economy as a whole.
Within the framework of the tests performed to calculate the valuation, and in order to predict the profitability of the business over the coming years, we will examine the cash flow; identify existing and future liabilities; review major contracts which impact the income and expenses of the business; examine tangible and intangible business assets (including goodwill) from the aspect of ownership; the value and ability to generate income for the business; and so on and so forth.

The valuation can be conducted using a number of accepted methods of calculation, the most common of which are the future discounted cash flow (DCF) method, the asset value method, and the multiplier method. The Economic Department in our office will select the method of calculation which they deem to be most appropriate for the business under examination, and/or a combination of methods and tests, in accordance with the nature of its activity, the purpose for which the valuation was made, the ability of the business to continue operating as a going concern, and more.
The Economic Department at Barsky, Berger & Co. CPA has extensive experience conducting valuations of companies and/or businesses.