Preview of the February 2022 issue of Business Valuation Update

BVWireIssue #232-2
January 19, 2022

Here’s what you’ll see:

  • Typical Way to Estimate Long-Term Growth Is ‘Flat Wrong,’ Says Grabowski” (BVR Editor). New research calls into question the common practice of using long-term real GDP growth plus expected inflation in terminal values.
  • New Version of the NICE DLOM Method Now Freely Available” (BVR Editor). William Frazier (Weaver) has a new version of his nonmarketable investment company evaluation (NICE) method for estimating a discount for lack of marketability (DLOM). An Excel template for the revised version, aptly named NICE-R, is now available.
  • New Case Points Up Opportunity for Buy-Sell Valuations” (BVR Editor). A recent court case illustrates that many buy-sell agreements do not adequately address the issue of valuation when an owner exits the firm. This article gives some advice as to how to turn this opportunity into recurring business—including the best way to design a valuation provision in a buy-sell agreement.
  • Valuation Lessons Learned From the Gaming Industry” (BVR Editor). No matter what type of firm you are valuing, there are several lessons to be learned from the gaming industry. Several industry experts from different markets—Las Vegas, Colorado, and Illinois—shared some fascinating insights into the business of gambling including how these firms operate and how they’re recovering from the pandemic.
  • Reader Question: How Much Is a Discount for Lack of Voting Rights?” (BVR Editor). In response to a reader question, we put the BVResearch Pro platform to work. It revealed what the studies, valuation textbooks, and court cases say about a discount for nonvoting stock—more than enough material to estimate and substantiate an opinion.
  • Questions a Trier of Fact Will Ask About Your Valuation” (BVR Editor). The fear of every valuation analyst is to be unprepared to answer a question in a deposition or on the witness stand. Here are some questions a judge or attorney will likely ask, either directed to themselves when reviewing your report or directly to you.

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 Mergerstat/BVR Control Premium Study,” “Economic Outlook for the Month,” and the “Cost of Capital Center”; and
  • BVLaw Case Update: The latest court cases that involve business valuation issues.

To stay current on business valuation, check out the February 2022 issue of Business Valuation Update.

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