BVWire attended the Joint ASA 2018 Advanced Business Valuation and International Appraisers Conference in Anaheim, Calif., and the sessions and networking events were excellent. Here are a few takeaways from just some of the sessions we attended:

• The Big Four firms are holding off on the new CEIV credential for fair value for financial reporting pending the resolution of quality control issues regarding the inspection process;
• When testifying in court, you face a number of preconceived notions, including the strong perception of being a “hired gun,” so make it absolutely clear you’re being an advocate for your opinion, not an advocate for the client;
• Valuation experts can’t be all things to all people, so specialize either in an industry or area of valuation (e.g., estate and gift, ESOPs, intangibles, etc.);
• At the start of a purchase price allocation engagement, talk with company management about what it sees as the overall value drivers of the firm;
• When doing a valuation of a company that rents space, spend time examining the lease, particularly the lease term, renewal options, and leases with related parties; to get market rent, some states require a broker’s price opinion;
• Pay particular attention to control issues in ESOP valuations—did the ESOP actually get the control it paid for? (DOL doesn’t like the term “control premium”);
• The major concern of the move to “retail health” is the effect on brand value;
• Startups are looking more to Hong Kong for funds—the listing rules have changed there concerning prerevenue companies; and
• Prospective financial information (PFI) deserves much more scrutiny than it has been given.

We’ll have more takeaways in future issues.