Preview of the April 2017 issue of Business Valuation Update

BVWireIssue #174-3
March 15, 2017

Here’s what you’ll see:

  • “Revisiting the Meaning of Fair Market Value” (Mark O. Dietrich). The author stimulates a rethinking of how fair market value is determined in a real-world transaction setting. Although he uses the healthcare sector to illustrate this, this applies in general across all industries.
  • “Five Action Steps to Verify the Financials of a Cash Business” (Pasquale Rafanelli, Grassi & Co.).When performing a business valuation, there are areas that are always ripe for manipulation—especially if you’re dealing with a cash business. Here’s an in-the-trenches case of such a business and how the manipulation was substantiated.
  • “ASA BV Chair Discusses Recent Changes to New FV Rules and CEIV” (BVR Editor). An interview with William Johnston (Empire Valuation Consultants LLC), chair of the ASA’s BV committee who is also the ASA’s CEIV program development representative and an instructor in the ASA’s first CEIV training course.
  • “Using Monte Carlo to Value Warrants With Down-Round Protection” (Oksana Westerbeke and Jared Hannon, Grant Thornton LLP). An illustration of the valuation of a warrant with two different types of common ratchet provisions (full and half) in a company with a simple capital structure. The methodology and application apply equally to public and private companies with simple capital structures
  • “Discovering the Drivers of Employee Equity Valuations” (Jason Murphy, Melbourne, Australia). This is the second in a number of articles on valuing employee equity, and it starts to examine the various forms of employee equity and the methodologies and standards for their valuation.
  • “Seismic Shifts Underway in Business Valuation Practice in the U.K.” (Andrew Strickland, Scrutton Bland, U.K.). More refined techniques are now sweeping away ideas and methodologies surrounding business valuation that have held sway for decades in the United Kingdom.
  • “Do Your Valuations Weigh Up?” (Chris Thorne, Bristol, U.K.). Two recent judicial decisions concerning very different assets situated in different jurisdictions illustrate that the courts prefer methods that provide the most detailed analysis of current or projected cash flow.

The issue also includes:

  • Regular features: “BV News At-a-Glance/Global Perspective,” “Ask the Experts,” and “Tip of the Month.”
  • BV data spotlight: Pratt’s Stats MVIC/EBITDA Trends, ktMINE Royalty Rate Data, Economic Outlook for the Month, and Cost of Capital Center.
  • BVLaw Case Update: The latest court cases that involve business valuation issues.

To stay current on business valuation, look for the April issue of Business Valuation Update, which will be available online on Thursday morning.

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