Clearly, compliance issues with the IRS, the FASB, the SEC, and international standard-setting authorities are creating vigorous debate in and among the BV profession and its practitioners. The creation/enforcement of standards for the profession is another hot topic—but some BV leaders caution valuators not to lose sight of the discrete analytical issues which courts and clients care most about. “Premiums, discounts, and cap rates seem to be the greatest area of concern for the judges,” comments Gary Trugman. “Many state courts are moving away from discounts because they are not happy with the experts. Our data stink and we are unable to convince a judge that a discount should be applied when we cannot support it." They question the company-specific risk because traditionally, it’s been a plug number, he says.
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