Here’s what you’ll see:
- “25 Tips on Dealing With COVID-19 From the NACVA Conference” (BVR Editor). COVID-19 was a hot topic of discussion in a number of the sessions at the NACVA and the CTI’s 2020 Business Valuation and Financial Litigation Super Conference, which was held online over five full days (June 15-19).
- “Valuers Stand Ground in Clash Over Purchase Price in SPAC Merger” (J. Russell Frawley III, MBA, CPA, ABV, Frawley & Co. PLLC). A recent SPAC merger triggered a strong disagreement between a national valuation firm and the merged entity over the fair value of equity consideration issued for the target company. A special purpose acquisition company (SPAC) is a shell company that raises capital in an IPO and then acquires an operating company to form a new merged entity.
- “Understanding the Science of COVID-19 Is Key to Assessing Valuation Impacts” (Mark O. Dietrich, CPA). For the economy to recover, the origin, transmission, and “hot spots” related to the coronavirus have to be understood. Much of the economy is highly localized, so the nightmare of the spreading virus will impact future cash flow of the smaller businesses most valuation experts work with. This is an excerpt from the new BVR briefing: “The Real Story of COVID-19 for Valuation and Litigation Experts.”
- “Flaws in North Carolina Court’s Appraisal of Reynolds American” (Gilbert E. Matthews, CFA, Sutter Securities Inc.). The wrong valuation date, a faulty reliance on other cases, and the disregard of projections highlight the court’s opinion in a shareholder dissent case involving two tobacco giants.
- “Cost of Equity and COVID-19: What to Do? (Update)” (Peter J. Butler, CFA, ASA, Valtrend). Use a forward-looking approach, implied volatilities, and total beta to determine an appropriate cost of equity to supplement one’s analysis during today’s unprecedented times.
- “The SEC’s Not-So-Gentle Reminder: Show Your Work” (PJ Patel, ASA, CFA, Valuation Research Corp.). In a recent SEC comment letter to a company about its determination that no impairment of goodwill and intangible assets was needed, the agency sounded much like every math teacher we’ve all very likely encountered: Show your work!
The issue also includes:
- An expanded section of “BV News and Trends/Global BV News and Trends.”
- Regular features: “Ask the Experts” and “Tip of the Month.”
- BV data spotlight: “DealStats MVIC/EBITDA Trends,” “ktMINE Royalty Rate Data,” “Economic Outlook for the Month,” and the “Cost of Capital Center.”
- BVLaw Case Update: The latest court cases that involve business valuation issues.
To stay current on business valuation, check out the August 2020 issue of Business Valuation Update.
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