BVR’s 2011 BV Firm Economics and Best Practices Guide will be out this month. Here’s an analysis of the percent of valuation firms that performed engagements in each major practice area in 2010. The table below shows that 83% of firms offering valuation services in 2010 conducted an engagement intended for tax purposes, making it the most common “specialty.” This was followed by valuations conducted for general corporate work. The biggest change in the last two years: only a sixth of responding firms did financial reporting valuations in 2008—now, almost half do. And, many more firms report doing transfer pricing now work compared to two years ago.
Firms performing valuations in each specialty in 2010 |
|
| Practice Specialty | Percent of firms |
Tax, Gifts and Estates |
82.8% |
Shareholder/Corporate (buy/sell agreements, shareholder disputes, etc.) |
72.9% |
Transactional (Including brokerage, mergers and acquisitions) |
66.1% |
Family/Matrimonial |
65.6% |
Fair Value for Financial Reporting (FASB/ASC compliance, etc.) |
48.4% |
ESOP |
39.4% |
Incentive compensation arrangements |
32.1% |
Bankruptcy and Restructuring |
29.9% |
Transfer Pricing |
20.8% |
| Other revenue sources not listed above | 27.6% |