BVWire is back from the excellent AICPA FVS conference in New Orleans. Here is an initial look at the valuable information gleaned in formal sessions and informal discussions there. Look for more in the next issue of BVWire as well as expanded coverage in a future issue of Business Valuation Update.

• Does the size premium still exist? Academics and investment pros say the size premium has vanished, based on research that shows it’s been declining over time. But BV experts claim it’s alive and well (e.g., see Pratt and Grabowski’s Cost of Capital, 5th Edition).

• What’s the most likely IRS audit trigger for estate/gift tax returns? It’s the presence of DLOM or DLOC in a valuation, according to a poll of attendees in a session on dealing with the IRS.

• Consolidation is “running rampant” in the auto dealer industry in the wake of Buffett’s purchase of Van Tuhl, the largest privately owned U.S. auto dealership group.

• The IRS still says “no” to tax affecting in valuations, and the agency is looking for a test case to bring to court. But a great deal of research indicates shareholder taxes definitely affect value.

• A terrific overall guide to using restricted stock studies for figuring DLOM is the free FMV Opinions Companion Guide, available here.

• Yes, using rules of thumb may run afoul of BV standards, but they are good for sanity checks and as indicators of industry value drivers.

• Disgorgement is the highest growth area in damages analysis. Too often, both sides forget about pursuing unjust enrichment claims, which may lead to a disgorgement remedy. Unjust enrichment is discussed in Fanon and Dunitz’s Comprehensive Guide to Lost Profits and Other Commercial Damages.