Capitalized Excess Earnings or Cash Flow

Family law attorneys are familiar with the Capitalized Excess Earnings (or Capitalized Excess Cash Flow) method to value the tangible and intangible assets and goodwill of a company. The formula itself, though simple, is often misused and misunderstood partly because earnings (on an accrual basis) and cash flow are rarely synonymous. Which then is more appropriate: earnings…

Read More