Some golden nuggets from the AICPA FVS confab

BVWireIssue #254-3
November 15, 2023

valuation profession news
AICPA, business valuation profession, conference

It was great to see the turnout at the AICPA & CIMA Forensic and Valuation Services Conference in Las Vegas last week. The attendee list on the mobile app contained about 900 names (including staff, speakers, and exhibitors), and it was about a 50-50 mix of valuation and forensic practitioners. There were over 60 sessions to choose from over the three days, and here are some nuggets from the first day:

  • We’ve just “scratched the surface” with AI, which is poised to add several trillion dollars of value to companies;
  • The updated AICPA business combinations guide is expected to be published in Spring/Summer 2024—and the PE/VC guide is also being revised;
  • Young practitioners need the “why” as well as the “what,” especially when doing mundane tasks—tell them the reasons and what’s at stake;
  • Although the recent Cecil case was a win for tax affecting (even the IRS tax affected), it will not be a slam dunk going forward;
  • Professional liability claims against experts are more than just the amount of fees—triers of fact feel that’s too low, so a 2x-to-3x multiple of fees is the typical range;
  • If a client wants to fire the attorney on your engagement, the expert should stay out of that conversation—it’s a no-win;
  • The new amendments designed to put more teeth into Rule 702 go into effect December 1—but courts have already been citing them when deciding to exclude expert testimony; and
  • A practice opportunity exists for verifying ESG-related claims companies make—they are often not true.

In the Exhibit Hall, two vendors of AI-powered tools drew noticeable interest from attendees: Valid8, which helps examine data in financial documents (bank statements, check registers, ledger transactions, etc.), and Valutico, which does a full-company valuation including a qualitative analysis, comp selection, cost of capital—and even ESG adjustments.

We’ll have more takeaways in next week’s issue.

Next year’s FVS conference will be in Dallas at the Hyatt Regency Oct. 28-30, 2024.

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