Here’s what you’ll see:

• “Earnouts and the Monte Carlo Method: Practice Tips for Implementation” (Erica L. Wilson and A. Vincent Biemans). Practice tips to use when implementing a Monte Carlo method (MCM) analysis to value earnout rights or obligations, plus a brief overview of earnout provisions and the MCM.
• “This Short Paragraph Can Bolster the DLOM Section in Your Next Report” (BVR Editor). Are you using a simple “benchmark average approach” for your analysis of a discount for lack of marketability (DLOM)? That type of analysis may have passed muster years ago, but times have changed.
• “Letter to the Editor: Response to Article on Separating Active and Passive Appreciation in the Value of a Marital Asset” (Mark Filler). The author says there are flaws in Dr. Ashok Abbott’s approach to segregating passive from active increases in the value of a marital asset—and he presents an alternate approach.
• “Letter to the Editor: Comments on an Article on the Use of Statistics in the Transaction Method” (Gary Trugman). A renowned valuation expert weighs in on dueling experts’ opinions on how many transactions should be used in the application of the transaction method of appraisal.
• “New Tax Legislation Consequences on U.S. Transfer Pricing and Intangibles” (Guy Sanschagrin). The Tax Cuts and Jobs Act of 2017 (the Act) brought sweeping changes to the international tax landscape, including the transfer pricing arena. Intangible property is at the core of many of these changes. Plus, the IRS is cracking down in this area.
• “Case Study Reveals How to Use Neuroscience to Collaborate With the IRS” (Michael Gregory). A former IRS manager marries neuroscience theory with practice as he presents real-life cases where an eight-step process was used in successful negotiations with the IRS over valuation matters.
• “Work File Checklist for Operating Rights” (BVR Editor). Documentation requirements for determining the fair value of certain intangible assets deemed to be operating rights, such as government licenses and commercial franchises. This is based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles (CEIV) credential.

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: “Pratt’s Stats MVIC/EBITDA Trends,” “ktMINE Royalty Rate Data,” “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 May issue of Business Valuation Update.