Paul Balynsky Shares Views on Unicorn Valuations in COVID with AICPA Professional Insights

Valuing Unicorns During a Pandemic

By: Paul Balynsky

Princeton, NJ and New York, NY (November 5, 2020) Paul Balynsky, CFA, CPA/ABV, Managing Director in VRC’s Princeton office, was recently quoted in the AICPA’s newest Professional Insights article titled, “Valuing unicorns during a pandemic.”

In the piece, the AICPA focuses on unicorns — private companies valued at $1 billion or more — and how their valuations are faring in the current COVID-impacted market, where these businesses may stand, and what influence the pandemic has had on their values. Balynsky notes that unicorns’ fate has much to do with their industry, as has been the case in the stock market. For example, eCommerce unicorn valuations have seen considerable growth as the world went remote. In contrast, industries or organizations with uncertain outlooks had bigger hits to valuations, including unicorns in the transportation and travel and leisure sectors.

Balynsky agrees that the adage ‘cash is king’ continues to ring true for unicorns. Liquidity needs are an essential consideration, says Balynsky. “Strong cash flows are an indication that the company is staying on track.” The AICPA also discusses benchmarks, the IPO market, and if investor interest in unicorns remains real or imaginary under current COVID conditions.

VRC invites you to read the article in its entirety on the AICPA’s website.

About VRC

Valuation Research Corporation is a full-service, independent, global valuation firm. Since 1975, our network of over 150 domestic and nearly 1,200 international valuation professionals has provided objective, supportable conclusions of value to domestic and international clients. The company’s core services include financial opinions with respect to valuation, solvencycapital adequacy and fairness in connection with mergers, acquisitions, divestitures, leveraged buyouts, recapitalizations, financings, and financial and tax reporting matters. VRC has locations in Atlanta, Boston, Chicago, Cincinnati, Dallas, Milwaukee, New York, Princeton, San Francisco, and Tampa; as well as international members in Argentina, Australia, Brazil, Canada, China, Colombia, Germany, India, Japan, Luxembourg, Mexico, Singapore, Spain, and the United Kingdom.