Here’s what you’ll see:

• “AI Sessions Draw Big Crowds at AICPA FVS Conference” (BVR Editor). There was a great deal of interest in sessions dealing with artificial intelligence and large language models (LLMs) at the recent AICPA & CIMA Forensics & Valuation Services Conference in Dallas. Readers of this newsletter have seen a number of our articles on AI usage in business valuation, so we will not repeat what we have already reported but will cover some new thoughts and perspectives that add to the conversation.
• “BVR Extends Reach of Groundbreaking Research Tool” (BVR Editor). BVR has taken the next step in deploying its new research tool that uses the latest technology, the Research and Data Assistant (RADA). It has been available only to subscribers of the BVResearch Pro platform, but now it can also be used with other BVR offerings.
• “A Dozen Tips From the VSCPA Forensic and Valuation Services Conference” (BVR Editor). Business Valuation Update attends a great many conferences and webinars, but we never fail to learn something new. Yes, the topics can be the same, but, no matter how many times you hear about something, a different presenter will offer some new information or give a different perspective on it, which is very valuable. Such was the case at the recent two-day Forensic and Valuation Conference held by the Virginia Society of CPAs (VSCPA), which had an excellent mix of topics and speakers.
• “Free Resources to Help Valuers With Business Interruption Claims” (BVR Editor). For business valuation experts grappling with business interruption (BI) and damages matters in the wake of this year’s natural disasters and tech outages, BVR is offering some free resources. You can download two full chapters from The Comprehensive Guide to Economic Damages, 7th edition, that deal with BI, lost profits, and damages claims. Plus, we provide some tips on uncovering misrepresentations in claims.
• “Maligned and Abused Excess Earnings Method Endures—But Why?” (BVR Editor). During a recent BVR Power Panel webinar on divorce valuations, the panel wondered why, given all the drawbacks of the excess earnings method, it continues to be used, especially for small businesses and professional practices. Also, insights into how judges evaluate an analyst’s use of this method.
• “RESEARCH UPDATE. Featured Paper: ‘Six Principles for the Effective Use of ChatGPT and Other Large Language Models in Accounting’” A monthly roundup of research papers of interest to valuation experts. The featured paper is from 2023, but it is still very relevant and provides some cautions for financial experts. Despite these caveats, the authors, during a recent conference presentation, urged the audience—especially those at firms with limited resources—to get their hands dirty and “experiment with LLMs to improve the efficiency of common language generation tasks.” Other papers listed in this update discuss fraudulent ESG reporting, how AI affects the cost of equity in China, and how sexual abuse scandals have impacted corporate returns.
• BVLaw Featured Case: “New York Appellate Court Finds Bookkeeper Employee Liable for Aiding and Abetting Fraud and Breach of Fiduciary Duty,” Schiano v. Harsanyi, 2024 N.Y. App. Div. LEXIS 4477; 2024 NY Slip Op 04338; 230 A.D.3d 820 (Aug. 28, 2024).

The issue also includes:

• A full 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,” “FactSet/BVR Control Premium Study,” “Economic Outlook for the Month,” and the “Cost of Capital Center”; and
• BVLaw Case Update: A chart of the latest court cases that involve business valuation issues with one case featured in a detailed analysis.

To stay current on business valuation, check out the December 2024 issue of Business Valuation Update.