Here’s what you’ll see:

• “New Study Analyzes Earnout Data in DealStats” (Brian Wendler and Rebecca Crowley, National Business Valuation Services). What the BVR DealStats database reveals about the nature of earnouts, keeping in mind the impact of the pandemic that has affected some industries far greater than a “normal” recession.
• “Company-Specific Risk Is Not All That Specific” (Peter J. Butler, CFA, ASA, Valtrend). All firms face company-specific risks, many of which are somewhat similar across industries and companies. So is anything really company-specific? An alternative method eliminates the need to totally guess at the company-specific risk premium.
• “The Strategic Premium: An Inside Look at M&A Prices” (Jim Horvath, FCBV, ASA, ICVS, CPA, MBA, ValuQuest Limited). Synergistic/strategic value should not be combined into one level in the typical chart that shows levels of value. Some buyers pay a “strategic premium” that propels strategic value to the very top of the value chart and well in excess of the expected synergistic value. The author uses real-world examples to illustrate this concept.
• “Fair Price for Delaware Fiduciary Actions Can Exceed Appraisal Fair Value” (Gilbert E. Matthews, CFA, Sutter Securities, and Matthew L. Miller, Esq., Abrams & Bayliss LLP). Can fiduciaries of Delaware corporations breach their duties and face damages for a merger that provides stockholders with the equivalent of fair value in a judicial appraisal? The answer may surprise you.
• “Letter to the Editor: The Use of the Arithmetic Mean to Average Multiples” Mark G. Filler, CPA/ABV, CBA, CVA, AM (Filler & Associates). The author takes issue with an article that concludes that the harmonic mean should be used as the appropriate measure of central tendency for a sample of market multiples.
• “Personal v. Enterprise Goodwill in Florida Divorce Cases: What the Appellate Courts Say” (Jimmy Stewart, CPA/ABV/CFF, CFE, Baker Tilly). In the wake of the recent King case, this is an analysis of marital dissolution case law from the Florida Supreme Court and the five District Courts of Appeal (DCA) of Florida that relates to the valuation of personal and enterprise goodwill in that state.

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 Mergerstat/BVR Control Premium Study,” “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 May 2021 issue of Business Valuation Update.