Takeaways from the ASA Advanced BV conference

BVWireIssue #193-4
October 24, 2018

valuation profession news
business valuation profession, valuation practice management, valuation standards

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.

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