2 Responses to “Guest editorial: Where Revenue Ruling 59-60 Got it Wrong”

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  1. Rick’s point is well taken. The importance of any aspect of a valuation study, however, will vary with the circumstances. In most of the projects we undertake, which are middle market businesses, the micro is clearly more important than the macro. About four years ago, on the other hand, when Wall Street and the banks were imploding, many businesses saw their credit shrink markedly, if not disappear. During that period, ignoring the impact of the macro would have been foolish. Even now, there are industries – like, for instance, animal production – where a failure to fully research the macro might miss one or more countries threatening to or actually engaging in a trade war that promised to harm or help a business in that industry. In the end, I’d say its all important, but the micro, especially for a small, regional business, is the most important.

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