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.
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