Preview of the October 2021 issue of Business Valuation Update

BVWireIssue #228-2
September 15, 2021

Here’s what you’ll see:

  • Florida’s Proposed Change to Goodwill Could Set a Precedent” (Richard West, Esq.; Bruce Parisi, ASA, ARM; and Thomas Gillmore, CPA/ABV/CFF, CFE). The Family Law Section of the Florida Bar is proposing legislation to clarify the value of goodwill in the marital interest of closely held businesses. The authors envision that this proposed legislation could set a precedent for future family law matters throughout the United States.
  • Good News: Key Research on Private Cost of Capital Is Back” (BVR Editor). On the brink of ending its long run, the Private Capital Markets Project from Pepperdine University has secured funding to continue its ongoing survey of expected rates of return of providers in the private capital market.
  • Updated Data Help Appraisers With RULs of Intangible Assets” (BVR Editor). To estimate the expected remaining useful life (RUL) of an intangible asset, it can be helpful to see how other appraisers have assigned RULs to similar assets in the subject industry. Data on 18 identifiable intangible types (also broken down by industry) culled from almost 16,000 purchase price allocations (PPAs) have been assembled into the third edition of Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations.
  • Warning to Business Valuers Looking to Use New ESG Ratings” (BVR Editor). A hot topic today is environmental, social, and governance (ESG) factors and how to reflect the impact of these factors in business valuations and financial reporting. Data are starting to emerge to help quantify the impact of ESG—but analysts need to be careful in using these data.
  • Premium Gap Closes Between Strategic and Financial Acquisitions” (BVR Editor). The difference between the premium strategic buyers pay for acquisitions versus what financial buyers pay has decreased, according to recent data in the Factset MergerStat/BVR Control Premium Study.
  • COVID-19 Cloud Has Silver Lining in the Cannabis Sector” (BVR Editor). A good example of the varying effects of COVID-19 on different industries can be found in the cannabis sector. Of course, the pandemic has had devastating effects overall, but something interesting happened in this sector that allowed it to weather the storm fairly well, according to valuation experts close to the industry.

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”; and
  • BVLaw Case Update: The latest court cases that involve business valuation issues.

To stay current on business valuation, check out the October 2021 issue of Business Valuation Update.

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