Here’s what you’ll see:

• “The Market Price of Risk: Quantifying a COVID-19 Equity Risk Premium Using High-Yield Bond Pricing” (Mark A. Orndorff, CFA, ASA, and Matthew L. Jakes, CFA, ASA, Southard Financial LLC). The authors demonstrate how a high-yield option-adjusted spread is used when doing appraisals of private companies while considering the market volatility and economic slowdown caused by the COVID-19 pandemic.
• “Pandemic, ESOP Woes, Fair Value, Crypto, and Fraud at NYSSCPA Conference” (BVR Editor). The 2020 conference season is underway, and Business Valuation Update was on the scene—virtually, of course—for the New York State Society of CPAs Business Valuation/Litigation Services Conference webcast live from New York City May 18.
• “Deviations From Historical Cash Flow and Their Implications to Effective Discount Rates for Lost Profits Analyses” (Josh Shilts, CPA/ABV/CFF/CGMA, CFE, and Jeff Robison, Shilts CPA, PLC). The authors address the direct relationship between projected cash flows (that is, those being measured for risk) and discount rates in a lost profits analysis.
• “A Quiet Revolution Is Going On in DCF Techniques in UK Cases” (Andrew Strickland, FCA). An initial cautious trickle of valuers using the discounted cash flow (DCF) in litigation work in the United Kingdom has broadened into a stream.
• “BVResearch Pro Tackles Tricky Search for Guidance on a 50% Interest” (BVR Editor). During a webinar, an appraiser challenges BVR’s BVResearchPro platform to find court cases, articles, or any other material that discusses a marketability discount for a 50% ownership interest in a private company.
• “Tales From the Trenches: Think Twice About Adding M&A Services to Your BV Practice” (Robert E. Kleeman Jr., CPA/ABV, ASA, OnPointe Financial Valuation Group LLC). Expanding into M&A services might appear to be a great growth area for your existing business valuation practice; however, the author believes that this strategy may be fraught with danger and may do more harm to your existing practice than help to grow it.

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,” “Stout Restricted Stock Study and DLOM Calculator,” “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 July 2020 issue of Business Valuation Update.