Here’s what you’ll see:

• “Determining the FMV of Small Privately Held Promissory Notes” (Bruce A. Johnson). The appraisal of promissory notes is an area of business valuation that has not received much attention from academic journals. Appraisers are taught to use corporate bonds as comparable investments, but they are much too large and marketable to be used as a proxy for most privately held promissory notes. This article introduces the concept of using Business Development Company (BDC) rates to value small promissory notes.
• “Inclusion of Betas in CCPro Platform Puts the Spotlight on the IRP” (BVR Editor). Two sources of industry betas are now included in BVR’s Cost of Capital Professional (CCPro) to help in estimating the industry risk premium (IRP) component of the buildup method for developing the cost of capital for a private company. For appraisers that choose to use an IRP, care must be taken and there are some important factors to consider.
• “Attorneys and Valuers Strengthen Ties at AAML/BVR Divorce Confab” (BVR Editor). The Tax Cuts and Jobs Act, expert witnessing, rigged valuations, and other interesting topics were presented at the National Divorce Conference (in Las Vegas May 8-10), co-sponsored by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR). This article recaps some important takeaways.
• “Avoiding Ethics Violations When Working on Divorce (or Other) Cases” (Sylvia Golden, Esq.). A session at the AAML/BVR National Divorce Conference did a good job explaining how attorneys and financial experts must think about ethical issues that may arise while working on a divorce (or any other) engagement so as to ensure they abide by their profession’s rules of ethics and work together in an effective and efficient way.
• “Front-Burner Issues Presented at This Year’s NYSSCPA BV Conference” (BVR Editor). Inputs into the cost of capital, cryptocurrency, and financial projections are just a few of the important topics discussed at the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) in New York City. Business Valuation Update attends this event every year and provides a few takeaways from the sessions in this article.

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/Revenue Trends,” “Stout Restricted Stock Study and DLOM Calculator,” “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, check out the July issue of Business Valuation Update.