BVWire was in Chicago last week at the annual conference of the National Association of Certified Valuators and Analysts (NACVA). To explore the theme Redefining Our Profession, around 550 attended on-site, and another 75 were on hand via live streaming. DLOM, goodwill, cost of capital, damages, and report writing were among the many timely topics covered.
NACVA announced that it has formed a number of partnerships to enhance the profession and benefit its members. It has partnered with 20 universities to attract students to the business valuation profession. NACVA is now a “channel partner” with the Expert Witness Exchange, which matches up experts with attorneys. To help members move their practices into a long-term consulting role with clients, NACVA has an alliance with CoreValue, which offers training and support. It has also set up a program in which members can offer their services to attorneys looking for an expert willing to do pro bono work.
On the technical side, here are a few takeaways from some of the sessions:
- If you have to cope with different sets of valuation standards, don’t worry. If you‘re in compliance with one set, you’re in compliance with all of them, according to a new comparison of all of the North American and international standards—eight sets in all!
- The next edition of Cost of Capital (Pratt and Grabowski) will present more work on the issue of the arithmetic versus the geometric average.
- The size premium is still in play. D&P has new research that it’s alive and well, but others are not sure it exists.
- All current S corp models overestimate value, according to a new paper (now in peer review) that will suggest a new approach.
- The impact on valuation and damages to a firm getting an adverse regulatory action is greater than ever in today’s fishbowl world. When something bad happens to a company, it’s all over the Internet.
- Instead of citing case law in your valuation report (a no-no), get a memo from the attorney on the matter and attach it.
- If your valuation for litigation uncovers a criminal act, such as tax fraud, a public trial can entangle you in the fallout; arbitration (private) eliminates your exposure.
- The income approach is most often the way to value a healthcare service line joint venture because it’s the only way to capture the many facets of the deal.
BVWire congratulates NACVA on a great event. Watch for more coverage in the next issue!
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