NACVA Exam CVA Topic 2 Question 72 Discussion

Actual exam question for NACVA's CVA exam

Question #: 72
Topic #: 2

[All CVA Questions]

Asset accumulation method can quickly quantify the effects on business value of many common seller structural considerations, such as:

AWhat if the seller retains the company's cash on hand or accounts receivables?

BWhat if seller does not retain (or leases back to the company) the operating real estate facilities?

CWhat if seller sells the title of the patents or to some other intangible asset owned by the company?

DWhat if seller does not legally retain any or all of the debt instruments?

Show Suggested Answer

Suggested Answer: D

by Noah at Aug 08, 2023, 05:14 PM

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Myong

4 hours ago

The asset accumulation method is really handy for quantifying the impact of different seller considerations. I like how it covers scenarios like retained cash, real estate, patents, and debt - that's super useful for valuation.

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Kirk

1 months ago

Exactly, it gives a clearer picture of how different factors can impact the value of the business.

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My

1 months ago

I agree, it helps to consider different scenarios like retaining cash or selling patents.

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Kirk

1 months ago

I think the asset accumulation method is important for determining business value.

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