Preview of the March 2021 issue of Business Valuation Update

BVWireIssue #221-4
February 24, 2021

Here’s what you’ll see:

  • Price Versus Value: A Transaction and Litigation Perspective” (Craig A. Jacobson and Richard B. Peil, B. Riley Advisory Services). According to disciples of modern portfolio theory and its efficient market hypothesis, shares of public companies should always trade at a price equivalent to their economic value, making it impossible for investors to experience short-term arbitrage profits. But try to explain that theory to any hedge fund manager or day trader who purchased or sold GameStop Corp.
  • Monetary Remedies in Trademark Infringement Litigation” (Stanley P. Stephenson and Gauri Prakash-Canjels, Litigation Economics). Remedies in the Lanham Act are used to punish wrongdoers in trademark infringement litigation, but courts applying that law have dealt differently with some key issues, especially monetary remedies. This article outlines some such problems and how the courts have dealt with them.
  • The NICE DLOM Method Gets a Few Shots in the Arm” (BVR Editor). The nonmarketable investment company evaluation (NICE) method, which first appeared in 2006, is included in leading valuation books, but it has not gained much traction and had not appeared in any court cases—until now. Plus, a streamlined version of the model will be out soon, according to the method’s developer, William H. Frazier (W.H. Frazier & Co. Inc.).
  • Using a Discounted Cash Flow Methodology in Uncertain Times” (Ronald L. Seigneur, Seigneur Gustafson LLP). A fundamental look at the method taking center stage during the pandemic. This article outlines how the DCF method works and to highlight the nuances and trap doors that will be encountered and must be overcome to reliably apply the method to derive an indication of value that is well reasoned and supportable for the application intended.
  • Assessing Additional Economic Risk Due to COVID-19 (Update)” (Ronald L. Seigneur, Seigneur Gustafson LLP). This is an update to a previously published template that can serve as a framework of thinking about the impact of the coronavirus on a subject company. The author presents a series of questions that help assess the short- and long-term risks with respect to the subject company’s industry, physical operations, financial issues, and firm management.
  • Global Valuers Converge for the Art and Science of Business Valuation Conference” (BVR Editor). A recap of helpful tips and insights from this conference that attracted close to 300 attendees from all over the world.

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,” “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 March 2021 issue of Business Valuation Update.

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