News you should know from the NACVA conference

BVWireIssue #225-4
June 30, 2021

valuation profession news
business valuation profession, conference, national association of certified valuation analysts (NACVA)

In addition to insights on valuation methodology, a lot of recent developments of interest were presented at the 2021 Business Valuation and Financial Litigation Hybrid and Virtual Super Conference. Here are a few:

  • NACVA now has more credentialed appraiser members than both the AICPA and ASA combined;
  • D&P/Kroll has reaffirmed its current recommended U.S. equity risk premium (ERP) of 5.5% (for use as of Dec. 9, 2020);
  • Massive turnover in staff will continue in accounting and valuation firms;
  • Amazon’s entry into the accounting space (via Pilot) is a sector disruptor to keep an eye on;
  • The first case that could address the new CMS Stark modernization rules impacting healthcare valuations is making its way through court;
  • Discounts remain the No. 1 red flag that triggers an IRS audit—make sure you have a complete explanation that supports your estimate;
  • Fifty experienced valuers have joined NACVA’s new Mentorship Program designed to help guide younger colleagues;
  • Territorial rights are going by the wayside in fast-food franchise agreements, which impacts value;
  • A free trial of a new guideline public company tool is available from Value Analytics at www.valueanalytics.org (sign up with promo code: NACVA2021);
  • The difference between projections and forecasts is important—a speaker pointed to an article in Business Valuation Update that discusses the difference; and
  • A “psychological accountant” says examining the motive for financial fraud is more important than how the fraud was committed.

The National Association of Certified Valuators and Analysts (NACVA) presented the conference. More takeaways will be in future issues of BVWire and Business Valuation Update.

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