Preview of the September 2018 issue of Business Valuation Update

BVWireIssue #191-3
August 15, 2018

valuation profession news
business valuation, business valuation update (BVU), international business valuation, business valuation resources

Here’s what you’ll see:

  • A Method for Quantifying Contract Renewal Risk in Valuations(Matthew Gold, CFA, and Matthew Ashby, CA). A formula that explicitly incorporates the assumed probability of renewal in the valuation of businesses that depend on contracts, licenses, or permits for their future cash flows. The methodology builds on the Gordon growth model and the formula for the future value of a growing annuity.
  • Stale Fairness Opinions in Related Party Transactions Should Be Updated” (Gilbert E. Matthews, CFA). It is common practice for proxy statements to contain fairness opinions that are dated weeks (or months) prior to the mailing date. Typically, they are not reviewed in the interim, which can be a problem.
  • Comments on Adequate Sample Size in the Transaction Method” (Mark G. Filler, CPA/ABV, CBA, AM, CVA). A letter to the editor in response to the article “Valuation Experts Clash Over Analysis of Transactional Data” and accompanying supplement that appeared in the April 2018 issue of BVU.
  • Valuation Expert Gains Key Insights—By Buying a Small Business” (BVR Editor). A valuation expert turns company acquiror and gets a unique perspective on evaluating firms for transaction purposes.
  • New Board and Pending Standards Highlight PCAOB Update” (BVR Editor). At the recent ASA/USC 13th Annual Fair Value Conference in Los Angeles, George Wilfert, deputy director of the Public Company Accounting Oversight Board (PCAOB), gave an update on the organization's activities.
  • Work File Checklist for Contributory Asset Charges” (BVR Editor). Based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles Valuation (CEIV) credential, this checklist helps document contributory asset charges, which are charges against revenues to reflect a fair return on or return of contributory assets used in the generation of the cash flows associated with the intangible asset being valued.

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,” “Stout Restricted Stock Study and DLOM Calculator data,” “Economic Outlook for the Month,” and “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 September issue of Business Valuation Update.

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