Preview of the October 2019 issue of Business Valuation Update

BVWireIssue #204-2
September 18, 2019

Here’s what you’ll see:

  • Gems From the ASA Advanced BV Conference in New York City” (BVR Editor). Notable sessions at the American Society of Appraisers 2019 Advanced BV Conference included a panel that included a state supreme court judge who answered questions very candidly, tips from IRS representatives, several sessions on the size effect, and more.
  • Tales From the Trenches: The Case of the 70% Equity Interest Valued as a Minority” (Robert E. Kleeman Jr., OnPointe Valuation). Don’t assume a 70% interest represents a majority for valuation purposes. This is the latest in our series of articles from veteran appraisers based on actual engagements.
  • Acquisition Premiums Amid Added Complexity in Market Transactions” (Evan Miller, Whitley Penn). In a fair value setting, while the acquisition premium (known also as a control premium) has been identified as a significant variable, its application and value measurement remain less well understood than the traditional components of acquisition finance.
  • Rules of Thumb Highlight the 2019 Business Reference Guide (BVR Editor). By far the most valuable information in the newest edition of this book is the coverage of pricing rules of thumb. This article discusses caveats when using rules of thumb and also reviews their use in litigation with reference to relevant court cases.
  • Understanding Tax Amortization Benefit Considerations and the International Impact” (Mercedes Falcon, VRC). When valuing a foreign target company in the context of a purchase price allocation, the local tax rules within the company’s jurisdiction often go unnoticed, but they should be considered and applied pursuant to the acquisition structure.
  • Factoring Workforce Engagement Into a Business Valuation” (BVR Editor). Someday, a “workforce engagement adjustment” will be made to the calculation of the value of an assembled workforce, say a panel of speakers on a BVR webinar. In the meantime, all valuation experts should be taking this factor into account for any business valuation when assessing specific company risk.

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: “DealStats MVIC/Revenue Trends,” “ktMINE Royalty Rate Data,” “Economic Outlook for the Month,” and “FactSet Mergerstat/BVR Control Premium Study.”
  • BVLaw Case Update: The latest court cases that involve business valuation issues.

To stay current on business valuation, check out the October issue of Business Valuation Update.

Please let us know if you have any comments about this article or enhancements you would like to see.