Preview of the October 2020 issue of Business Valuation Update

BVWireIssue #216-2
September 16, 2020

Here’s what you’ll see:

  • The Valuation of Convertible Notes Using a Binomial Model” (Anthony R. Banks, ASA and Taylor Rosanova, CFA, Marcum). The authors’ research reveals that there are numerous articles, chapters, and models with bad math, bad equations, notational errors, or undisclosed rounding in some equations. They present a version of the Goldman Sachs binomial model and suggest that valuators provide fully functional binomial models when requested so that reviewers can “look under the valuator’s hood.”
  • Pandemic Triggers Chances for Valuers in Exit Planning” (BVR Editor). Remarks from the AICPA ENGAGE conference on the timely opportunities for financial professionals in exit/succession planning. This article gives some basics on how valuation experts can leverage their experience into this type of consulting.
  • The Expert Witness Process: Tips for Valuation Practitioners” (Robert E. Kleeman, OnPointe Valuation). The author developed and taught the AICPA course in expert witnessing, and he shares his advice for the entire process, from securing the engagement to cross-examination.
  • This Deceptively Simple Tool Can Help Clients Forecast Cash Flow” (BVR Editor). Valuation and forensics expert Darrell Dorrell (Financial Forensics) offers an Excel spreadsheet you can give clients to help them keep a close eye on their cash flow during these tough times.
  • Back to Basics for Lost Profit Damages Calculations Amid COVID-19” (BVR Editor). Does the pandemic have an impact on the measurement of future lost profits, particularly where the underlying breach occurred before the pandemic arose? This is an area of law that could change as courts begin to face disputes in the context of a COVID-19 world. In the meantime, this article gives a primer on calculating lost profits damages.
  • From the Bench: 10 Warning Signals of Trouble With a Valuation Expert” (BVR Editor). It’s always very informative and helpful to listen to judges talk about the valuation cases they hear. At NACVA’s recent Business Valuation and Financial Litigation Super Conference, a panel of judges did just that—and they shared their views of when they detect potential problems with appraisers when they are on the witness stand.

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/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 October 2020 issue of Business Valuation Update.

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