Here are the featured articles in NACVA's journal (the September issue was just released):
Pass-through Entity valuations and ‘Value to the Holder’: a new Perspective
By Eric J. Barr, CPA/ABV/CFF, CVA, CFE
The author analyzes recent court decisions—including Delaware MRI and Bernier—and offers more clarity as to the proper way to resolve the pass-through-entity conundrum when valuing a business ownership interest under the “value to the holder” standard of value.
Exit Planning for Venture-Funded Companies: 6 Key acquisition Drivers
By Mahendra Ramsinghani and John Kerschen
By far the most common exit path for successful venture-backed companies is a trade sale, in which the portfolio company is acquired by a larger company, netting a return for investors and their limited partners. VC-backed companies make strong acquisition candidates if they have established revenues and customers, proprietary technology, and/or a unique and defensible market position. This article explores those and other key acquisition drivers.
Anatomy of an llC operating agreement: Fundamentals for valuation analysts
By L. Paul Hood, Jr.
When you engage in the valuation of a limited liability company, regardless of the purpose of the valuation, a review and analysis of the LLC operating agreement is essential. The author explains the most important provisions of a typical operating agreement from a valuator’s perspective, and shows how some of those provisions affect business valuation.
Book Review: How to Work with the IRS: Strategies for Attorneys, Accountants & Appraisers By Michael A. Gregory (Birch Grove Publishing, Roseville, MN, 55113)
Reviewed by John E. Barrett, Jr., CPA/ABV, CBA, CVA, MST