In the days before the recent Joint ASA 2018 Advanced Business Valuation and International Appraisers Conference in Anaheim, Calif., the ASA held various classes as part of its accreditation process. BVWire attended the BV203 class, which focused on the asset approach as well as discounts and premiums. As an interesting aside, the course instructors, Rob Schlegel (Houlihan Valuation Advisors) and Bill Quackenbush (Advent Valuation Advisors), asked class participants—who were from Big Four firms as well as small firms—to identify some key issues their companies were concerned about. Here are the issues they identified:

• The new fair value credential (CEIV). Smaller firms are waiting to see what the Big Four do in terms of credentialing their people.
• Contingent consideration. The Appraisal Foundation will issue a revised draft (or final version) of the Valuations in Financial Reporting (VFR) exposure draft on Valuation of Contingent Consideration.
• One large firm is seeing more debt-related valuations.
• Private equity and venture capital. A final draft is in the works of the AICPA accounting and valuation guide to PE/VC.
• Audit conflicts—concerns when doing valuation work for a client when the firm is also doing the audit work. Valuation “consulting” may not cause a conflict.
• Troubles with the narrative when writing valuation reports, i.e., linking the numbers to the story of the company.
• Management succession, i.e., disruption if a key person leaves—there’s a shortage of quality people.
• Brexit—a class participant from the London office of a large firm says it’s causing an “evaporating client base.”