Willamette Perspectives

April 2023

Editors for this issue: Charles Wilhoite and Scott Miller, managing directors of our firm in our Portland office.

Incorporating ESG Performance in Equity Valuations

Nathan M. Hesch

Environmental, social, and governance (“ESG”) investments have seen significant growth over the past two decades. Research has suggested that ESG status has important implications for equity valuations. In this article, we examine several studies that provide the building blocks for analysts who might consider incorporating ESG factors into an equity valuation.

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Key Considerations Regarding the Valuation of “Small” Businesses

John Sanders Jr. and Dakota Ask

The valuation of small businesses often requires the application of valuation methods that are somewhat distinct from those used to value large companies, although they adhere to the same valuation concepts. This article explores the distinctions between large and small businesses, various normalization adjustments that may be necessary, and the valuation approaches and methods commonly used to value small businesses.

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The Tax Benefits and Challenges of Allocating Total Business Goodwill to Personal Goodwill in a Transaction

Lisa Tran

In transferring assets from one enterprise to another, it may be important to distinguish between personal goodwill and entity goodwill for tax reasons. This article notes how closely-held-business owners can realize significant tax savings if they can allocate portions of the total transferred enterprise value between company-owned entity goodwill and individual shareholder or employee-owned personal goodwill.

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Willamette Insights Back Issues

Insights was Willamette’s noted APEX Award of Excellence winning publication from 2010 through Winter 2023 for the scholarly examination of the contemporary and complex issues in the areas of business valuation, forensic analysis, and financial advisory services. Each Insights issue focuses on a specific topic or theme, such as discussions related to transactions, taxation, financing, bankruptcy, litigation, and strategic planning. Below are links to articles from recent issues, and links to older issues.