This report explores a few key statistics that paint a picture of the Birmingham area economy and indicate that the growth of our economy has generally lagged in comparison to state and national growth rates. This is the third edition of the newly reinstated Porter, White & Company Birmingham Area Economic Report, which is published… Read More >
News & Insights
What’s it Worth, a Valuation Newsletter
This report initiates Porter, White & Company’s Quarterly Valuation Review, directed to small and middle market business owners and the professionals and financial institutions that serve them. The Review is designed to provide realistic guidance on the question, “What’s it Worth?,” keeping in mind that proper preparation for real world transactions requires analysis of specific… Read More >
The BBJ Covers PW&Co’s Economic Report
The Birmingham Business Journal recently covered PW&Co’s Birmingham Area Economic Report in a segment about the growth of metro Birmingham with relation to similar areas. Click here to read the article in the BBJ. Click here to read PW&Co’s most recent Birmingham Area Economic Report. We will release the economic newsletter quarterly. If you would… Read More >
Birmingham Area Economic Report, Q3 2014
This report explores a few key statistics that paint a picture of the Birmingham area economy and indicate that the growth of our economy has generally lagged in comparison to state and national growth rates. This is the second edition of the newly reinstated Porter, White & Company Birmingham Area Economic Report, which is published… Read More >
Great Time to be a Seller – ACG Conference
Last week, Porter White attended the ACG Capital Connection in Atlanta with over 1,000 middle-market private equity professionals and other capital providers. The story we heard all last year continued – competition to invest capital and close deals has continued to drive up valuation multiples. Larger companies ($10+ million EBITDA) are garnering multiples of over… Read More >
Principal Trends and Interest, Q4 2014
Porter, White & Company presents Principal Trends and Interest, a newsletter for community banks. In this issue we look at the curious case of today’s M&A environment and two services banks require but often overlook. 2014 M&A Scorecard: Clear as Mud? What to do about Distressed Business Borrowers? My Bank’s ESOP Needs Advice 2014 BANK… Read More >
PWCo Provides Fairness Opinion for Graham
Porter White & Company (PW&Co) was retained by Graham Commercial Properties (GCP) to provide a fairness opinion in connection with a confidential acquisition. PW&Co provided a third-party, independent valuation of the assets being acquired after performing due diligence, considering certain scenario analysis, and applying various industry standard valuation techniques using comparable company and transaction data…. Read More >
Birmingham Area Economic Report, Q2 2014
This report is the first in a series of reports that we expect to issue quarterly, reinstituting the Porter, White & Company Birmingham Area Economic Report, which was initially published in the early 1980’s. Interim releases will comment on local economic news and analyze in greater depth the statistics presented in this report. Other statistics… Read More >
What is My Company Worth?
This is the third in a series of comments on the use of valuation multiples. All three comments are posted on the website. In our last commentary, we looked at the impact of company size on business value. While a small company’s earnings may be inherently riskier than large public companies, we often find that… Read More >
Examining Public Company Multiples
This is the second of three comments on the use of valuation multiples. All three comments are posted on the website. When investors and business owners quote public company valuation multiples to demonstrate the value of their company, they are typically overstating its value. While the trading of public companies in the stock market provides… Read More >
A Quick Analysis of Roth 401(k)s
After the Employee Retirement Income Security Act (ERISA) of 1974 created the IRA, retirement savings options expanded for Americans, typically allowing for tax-deferred savings. While the benefits of these tax-deferred vehicles are enormous, they also come with strings attached. After reaching age 70½, individuals must withdraw a portion of the account and pay income taxes… Read More >
Concerning Multiples
We use multiples all the time. “It was twice as hot yesterday than today.” “The drive took three times as long because of traffic.” “I would pay five times the company’s dividend to own that stock.” In these cases, as well as in financial analysis, multiples are used to examine a relative relationship. For example,… Read More >
How a Rubik’s Cube Explains What We Do
On our Investment Banking home page, the image of a Rubik’s cube is used as a symbol of the complex business situations that we encounter as investment bankers. Our team works across industries helping clients buy and sell businesses, assess and fund growth opportunities, evaluate and restructure distressed companies, analyze economic uncertainties, and value minority,… Read More >
Have the Markets Entered a Danger Zone?
Robert Schiller, author of “Irrational Exuberance” and recent Nobel Prize winner, has been credited with predicting the last two market crashes. His preferred metric of value for the stock market is the “Cyclically Adjusted Price Earnings (CAPE)” ratio. He makes the CAPE ratio and data underlying it available on his web page. As shown in… Read More >
Projecting 10 Year Portfolio Returns
Answering the following questions requires a view on future stock and bond portfolio returns: “How much can an endowment disburse and maintain its value?” “How much do I need to save for retirement?” “What is the likelihood of doubling my account in 5 years? 10 years?” It is very difficult to predict market returns in… Read More >
PW&Co Named Top Financial Planner in 2014
Porter, White & Company has once again been included in the the Birmingham Business Journal’s List of Financial Planners. “It is always great to be included in the Book of Lists published by the Birmingham Business Journal,” said Goodloe White, CFA, President of Porter White & Company. “While it is never been our goal to… Read More >
Michael Stone Earns CFA Designation
Porter, White & Company is pleased to announce that Michael Stone has earned his CFA (Chartered Financial Analyst) designation. He joins Goodloe White as the firm’s second CFA Charterholder. In addition, Michael is also an Accredited Member of the American Society of Appraisers in Business Valuation. These designations represent a significant investment in the science… Read More >
Should We Rebalance Our Balanced Portfolios?
In our last commentary (IMC 13), we looked at rebalancing an all stock portfolio. (If you didn’t read this post, you might want to review it here before continuing.) We looked at the case of an account that only included stock mutual funds. What if we included bond mutual funds in our portfolio as well?… Read More >
