More takeaways from the ASA conference in Las Vegas

BVWireIssue #158-1
November 4, 2015

Last week’s BVWire presented some golden nuggets from the Las Vegas annual Advanced Business Valuation Conference of the American Society of Appraisers (ASA). Here are a few more:

  • A vital element of successful networking is the follow-up, advises keynote speaker Dr. Bill Saleebey, and the quicker the better—but don’t be too aggressive.
  • In the works for several years, a new DLOM toolkit is scheduled to be launched March 2016, according to co-developer Jim Hitchner (Financial Valuation Advisors).
  • Using an option model to value the common stock of emerging growth firms is the subject of a new paper that was presented by John Finnerty (Alix Partners). 
  • Craig Ter Boss (Eisner Amper) says the ongoing scrutiny on fund valuations by the PCAOB and SEC means opportunities for third-party fund valuation experts hired by fund managers.
  • Don’t abandon the market approach, advises Linda Trugman (Trugman Valuation Associates Inc.)—the literature and all BV standards say to at least consider it.
  • Lots of interest from the audience in a session on personal goodwill by Bob Morrison (Morrison Valuation & Forensic Services LLC) about the MUM method of splitting out personal and enterprise goodwill—some say “the courts love it.”
  • A well-prepared appraisal may be a necessary element in the taxpayer shifting the burden of proof to the government, as seen in Estate of Adell, says attorney Robert Hamilton (Hamilton Thies & Lorch LLP).
  • When selecting comparable royalty rates, eliminate anomalous observations that cannot be normalized or adjusted, advises Robert Reilly (Willamette Management Associates), but don’t automatically eliminate ones that fall outside of the typical range.

More details and takeaways from the ASA conference will be in the December issue of Business Valuation Update

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