Here’s what you’ll see:

• Alternative Model Uses Corporate Bond Yields to Measure a Size Premium (Michael Dobner). Measuring a size premium through historical data has been criticized for being flawed and static and lacking a credible fundamental or economic basis. The author proposes the use of prospective data (using corporate bond yields) to measure a size premium.

• Recent Case Points Out Confusion Over Calculation Reports Under the SSVS (R. James Alerding, CPA/ABV, ASA). Buried deep in a densely worded opinion in a recent divorce case are references by the court to a preliminary appraisal of a business. The expert gave a calculated value instead of a conclusion of value.

• Is the Lingering Criticism of Using Pre-IPO Studies for DLOM Justified? The use of pre-IPO studies to measure a discount for lack of marketability has gained acceptance although the method continues to be a target of some criticism. The trouble is, this criticism can sometimes be based on “old” facts, which can lead to misinformation.

• Determining a Distressed Debtor Company Discount Rate (Part 2) (Michael D. Pakter). The second part of a two-part article on how to derive the cost of capital for a distressed debtor company.

• Impact of Recent Developments on Employee Stock Ownership Plans (ESOPs) (Scott D. Miller, CPA/ABV, CVA). The American Taxpayer Relief Act of 2012, S corp eligibility for ESOPs, and proposed DOL regulations all have had an impact on ESOPs.

To read these articles—plus a digest of the latest court cases—see the February issue of Business Valuation Update (subscription required).