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Will a recession affect the value of my business?


March 26, 2009
By CNW Group

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March 26, 2009 – With unprecedented changes in today's economy and fluctuations in the financial markets, it is more challenging than ever to value businesses and other tangible and intangible assets.

March 26, 2009 – Toronto., With unprecedented changes in today's economy and fluctuations in the financial markets, it is more challenging than ever to value businesses and other tangible and intangible assets. To help shed light on what a valuation is and how businesses are valued differently in a tight economy, PricewaterhouseCoopers (PwC) in Canada launched the third podcast in the Strategy Talks series today. Titled, How will a recession affect the value of my business? the podcast will explore key valuation issues and share strategies companies can use to address them through feature interviews with
PwC thought leaders.

An independent, expert valuation determines the value of a business' enterprises, interests, assets or liabilities and is prepared for a variety of purposes, including corporate governance, transaction pricing, regulatory reporting and income tax or estate planning. Given current market issues, boards of directors, business owners, management and regulators are increasingly requesting that supporting valuations be prepared to identify the relative strengths of a company's assets.

In this, the third podcast in the series, How Will a Recession Affect the Value of My Business?, Dean Mullet, co-lead of the Restructuring and Distress Strategy Group and the Credit Crisis Task Force at PwC, and Helen Mallovy-Hicks, a partner in the Valuations group of PwC's Advisory Practice, speak with Ken Goodwin, a partner in the Valuations group. Ken discusses the intricacies of a valuation and how a recession affects the way businesses are valued.

Some of the issues explored include:

    –   How is an organization valued during recessionary times, and what are the key differences?
    –   How would an organization go about getting an independent, fair valuation?
    –   How challenging is it to get an accurate valuation of a business during recessionary times?
    –   What opportunities does a downturn present to strong companies?

The Strategy Talks podcasts will continue over the coming weeks and months and can all be found at pwc.com/ca/strategytalks.

Recent podcasts include:

    –   Surviving the Economic Crisis: PwC's Perspective
    –   Restructuring in a Down Economy

PwC Economic and Credit Crisis Task Force
PwC recognizes that a global crisis requires a global and co-ordinated view.

The PwC Economic and Credit Crisis Task Force (the "PwC Task Force") brings together a Canadian team of senior cross-functional experienced practitioners who understand market volatility and the diverse challenges facing companies today. By leveraging knowledge, experience and networks, the PwC Task Force can advise and guide Canadian companies through a multitude of Capital market and economic crisis issues.

PwC thought leaders are available for individual interviews and briefings on the topics found within the podcasts. For more information please contact Carolyn Forest, carolyn.forest@ca.pwc.com, 416 814 5730.

PricewaterhouseCoopers (www.pwc.com ) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 155,000 people in 153 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP (www.pwc.com/ca ) and its related entities have more than 5,200 partners and staff in offices across the country.

"PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity.

For further information: Carolyn Forest, PricewaterhouseCoopers LLP,
(416) 814-5730, carolyn.forest@ca.pwc.com; Nina Godard, PricewaterhouseCoopers
LLP, (416) 941-8383 x 13520, nina.godard@ca.pwc.com