Raleigh, NC – ENLIGN Business Brokers has provided an Opinion of Value Report for a Grammy Award winning heavy metal band.
ENLIGN, calculated the Opinion of Value using the Discounted Cash Flow (DCF) method of business valuation. Considering revenue streams such as live performances, live performance merchandise sales, live performance bonuses, web store merchandise sales, recording contract advances, and royalty advances.
Merchandise sales include shirts, hats, cd’s and other band memorabilia.
The calculation included imputing a Weighted Average Cost of Capital (WACC) as a discount rate to determine the net present values of the various cash flows. Several dozen assumptions were required and included in the multi-page worksheet that was subsequently referenced in the Opinion of Value Letter provided to the client.
A discount for lack of control was also applied.
“Valuing a entertainment entity, such as a heavy metal rock band, was certainly one of the more interesting projects we’ve been retained to complete.” shared Jeff Snell, ENLIGN’s founder and Principal Broker.
The client was referred by their intellectual property and entertainment law firm based in New Orleans, LA.
ENLIGN does not release financial details of opinion of value.
For more information, visit ENLIGN’s website.
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