Here’s what you’ll see:

• Indefinite Is Not Infinite—Solving a Dichotomy in Trademark Valuation (Christof Binder, Ph.D., MBA, and Robert B. Morrison, MBA, ASA BVIA). New research reveals that trademark valuations appear to be not fully in line with ASC 350 and IAS 38. Once a trademark is given an indefinite life, it appears to be treated that way permanently, which has serious effects on valuation and accounting. The authors also discuss how to estimate a finite remaining useful life of a trademark.

• Misapplication of the Gordon Growth Model Can Lead to Undervaluing (Drew E. Voth, CVA, CPA/CFF, CIRA/CDBV, CFE). Every valuation analyst is taught the Gordon growth model, and it’s not particularly complex. But the author sees common mistakes being made in applying this model and looks behind the model to demonstrate its proper application.

• Avoiding Complications and Disparate Opinions of Value in Buy-Sell Agreements (Brian Burns, CPA/ABV/CFF, ASA, and Chris Mitchell, CPA/ABV/CFF). Common ambiguities and valuation pitfalls can lead to complications surrounding buy-sell agreements. Also, relevant case law concerning disputes with buy-sell agreements is discussed.

• BVU Profile: Business Valuation From the Perspective of an Appraiser in Italy (BVR Editor). An interview with Ascanio Salvidio (Salvidio & Partners), who talks about the valuation profession in Italy and the importance of a convergence of valuation standards. He also discusses the data sources he uses for valuation purposes.

• Ongoing Research Related to the S Corp Valuation Puzzle (BVR Editor). Nancy Fannon (Meyers, Harrison and Pia LLC) and Keith Sellers (University of Denver) present several areas where additional research would be helpful to further the analysis concerning the effect of shareholder-level taxes on a firm’s value. Their new book is a major advance in the area of valuations of pass-through entities.

To read these articles—as well as digests of the latest court cases—see the May issue of Business Valuation Update (subscription required).