Preview of the July issue of Business Valuation Update

BVWireIssue #261-3
June 19, 2024

Here’s what you’ll see:

  • “SCOTUS Decides Valuation of Corporate-Owned Life Insurance” (Roger Grabowski). In a unanimous decision, the United States Supreme Court sided with the 8th Circuit and ruled that the life insurance proceeds payable to a corporation that was to be used to redeem the deceased shareholder’s stock should be included in the deceased’s estate when calculating the value of the stock the deceased owned. The redemption liability did not offset the life insurance proceeds. This article is a summary of the decision and some observations.
  • “Two BV Trends That Have Alarmed BVR’s ‘Power Panel’” (BVR Editor). A panel of thought leaders commented on two issues they say have raised some very loud alarm bells. One issue involves the methodology and analysis for estimating a discount for lack of marketability (DLOM), and the other issue concerns professional standards.
  • “Try These Visuals When Selling Business Valuation Services” (BVR Editor). Charts and graphics can work wonders in a courtroom, but why not use this same idea when trying to land a new client? Here are some examples that have worked well for veteran valuation practitioner Rod Burkert (rbCoaching).
  • “Retain Professional Judgment in Your Cost of Equity Estimates” (BVR Editor). Amid the barrage of emerging technology, artificial intelligence, and automated valuation models, there is a concern in the profession about the “black box” phenomenon of using these tools. Dr. Michael Crain (Florida Atlantic University), the author of the Cost of Capital Professional platform, talks about this with Ron Seigneur (Seigneur Gustafson LLP) during a demo of the platform.
  • “Going ‘Beyond Valuation’ to Propel Your Practice and Career” (BVR Editor). The second annual ASA Beyond Valuation virtual conference provided some actionable ideas to help valuation experts to develop their careers.
  • “RESEARCH UPDATE: Monthly Recap of Research Papers” (BVR Editor). The featured paper is “Beyond Subjective Weights—Risk Aware Reporting of Valuation Results for a Privately Held Business” by Mikhail Munenzon (InteleK Business Valuation & Advisory). Other papers of interest to valuation experts cover topics including ERPs and risk-free rates, valuation of data assets, quantitative disclosures and risk, and the impact of founder-family succession on firm value.

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: 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 July 2024 issue of Business Valuation Update.

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