Other Miscellaneous Assets
See Inputs and Balance Sheet for general instructions.
- Enter all other operating assets excluding goodwill and intangible assets (see below). Examples of Other Misc. Assets are rent deposits, surety bond to maintain a license or a certification, etc. Amount entered in this cell generally should be small relative to other assets.
- Value of Other Misc. Assets remains constant for all future years. Example: If Other Misc. Assets are 100 in Year-0, they remain the same in all future years regardless of sales. Other Misc. Assets do not impact cash flow because BVXdoes not change this value in the future.
- BVX does not depreciate Other Misc. Assets.
- Goodwill and Intangible Assets: Exclude goodwill and intangible assets of the seller in BVX valuation. Even though goodwill and intangible assets, like patents, are operating assets, and the buyer will be buying them as part of the valuation, their current values on seller?s balance sheet should not be entered. Goodwill and intangible assets get a new value assigned to them by BVX. BVX lumps them both and calls it Goodwill. BVX calculates goodwill using the residual method. See Goodwill.
- SFAS 141 and SFAS 142: BVX values the business based on cash flow, and not based on earnings. Separation of goodwill into goodwill and intangibles as required by SFAS 141 and SFAS 142 impacts the "reported earnings" of a company, but does not change its cash flow. BVX does not separate goodwill into its two components because cash flow is not impacted due to SFAS 141 and SFAS 142.