We find it perplexing how often S corp. owners—who invest in their business with an eye on the future and carefully analyze the cost/benefit of every decision—take a short-term, simplistic approach to reasonable compensation: Just pick the lowest possible number to minimize payroll taxes. Read more >>

Back in 2012, BVWire ran a news item reporting that the era of the business valuation generalist was over. Since then, this notion was reinforced in ongoing coverage. For example, we reported in 2015 that attorneys look for specialized skills when engaging an appraiser. Today, the advice to specialize continues to resonate. Read more >>

The first major multiday, multitrack conference of the year, the NACVA and the CTI’s 2020 Business Valuation and Financial Litigation Super Conference, was held online over five full days in June. Business Valuation Update attended, and we found excellent speakers and interesting sessions, and the technical details all went smoothly. COVID-19 was a hot topic of discussion in a number of the sessions, so, here we present 10 takeaways on dealing with the pandemic’s impact on business valuation. Read more >>

Business valuations prepared for divorce purposes can be much more challenging than valuations can be for other purposes because the rules differ among jurisdictions. There are no clear valuation guidelines for divorce in most states. For example, there’s no specific definition of value in state statutes governing divorce. Also, divorce courts exercise a great deal of discretion—even if there is an abundance of judicial precedent (which can be confusing and contradictory). Read more >>

Vertical IQ is the leading provider of industry intelligence for those advising small- and medium-sized businesses, and their research team is working to provide updates on how COVID-19 affects industries, sectors, and economies. As the situation surrounding coronavirus (COVID-19) continues to develop, industries are experiencing the impacts in various ways. Read more >>

Business Valuation Resources recently published EBITDA multiples by industry in our DealStats Value Index (DVI). DVI presents an aggregated summary of valuation multiples and profit margins for nearly 40,000 sold private companies listed in our DealStats platform. Read more >>

NACVA recently held the first major multiday multitrack conference of the year online, and BVWire attended via the Zoom platform. We found excellent speakers, interesting sessions, and the technical details all went smoothly (attendees even received lunch credits via GrubHub). Read more >>

When it comes to saving time and effort when performing economic research, where is the best place to start given the current climate due to the coronavirus pandemic? The Economic Outlook Update (EOU), published by Business Valuation Resources, reports digest expansive research from the leading authoritative sources into one convenient report. Get a sneak peek of our April 2020 EOU report. Read more >>

Every company—large and small alike—now faces material risks related to data security and privacy concerns that need to be addressed when performing a business valuation. This is a challenging area for valuators because it is a complex issue and there is little guidance or empirical data to help quantify these risks. Fortunately, ideas and techniques are emerging to help pave the way to better understand and measure the impact of data security and cyber liability risks on the value of a business. Read more >>

BVR is excited to announce the release of its new Guideline Public Company Comps Tool (GPCCT), a state-of-the-art, web-based platform that offers access to complete financial statements, financial ratios, and multiples for comparable companies—and even includes an Excel add-in. Read more >>

As the world continues to feel the crippling effects of coronavirus, we can’t help but observe the ingenuity and compassion that citizens are showing for their communities. Musicians are hosting live concerts on social media, online subscriptions are discounted left and right, and events all over the world are transforming to webcast versions for all to utilize. We are entering an era of adaptation in a way the world has never seen—and BVR is here for it. Here are some ways BVR is supporting the valuation community during this unpredictable, uncertain time. Read more >>

The unpredictable coronavirus is disrupting work plans of valuation and accounting firms and impacting the global market. Conferences are being postponed and offering webcast versions, firms are limiting travel, supervisors are encouraging virtual meetings, and new ways to help prevent the spread of the disease are introduced every day. Here are some recent developments, issues, and advice that everyone should consider, including factors to favor when performing a valuation in this turbulent, uncertain time. Read more >>

When looking to appraise or value both residential and commercial construction companies, there are many unique factors to consider that set this industry apart from others. In BVR’s new special report, What It’s Worth: Valuing Residential and Commercial Construction Companies, expert Pasquale Rafanelli covers the opportunities these types of valuations can provide for business appraisers, which we’ve excerpted here. Read more >>

When looking to appraise or value paving companies, there are many unique factors to consider that set this industry apart from others: the seasonality of the business, specific bidding requirements for federal, state, and local governments, as well as contracted set asides for businesses owned by women, minorities, and veterans. There are even special rules for determining what qualifies for these ownership types. Read more >>

It was an exciting year for the business valuation profession in 2019! Some of the developments include important court rulings on tax affecting pass-through entities, a possible upending to the goodwill model, a new cost of capital platform gaining traction, and advances in fair value for financial reporting. Read more >>

While hotels are a business and as such may be appraised as any other business would be, there are some distinguishing factors that valuation experts need to consider. As with any business being valued, each case will be different, and there may be other tangible and intangible assets to consider for your subject hotel. Read more >>

In a November 2019 Business Valuation Update article, which we’ve excerpted here, valuation expert Robert E. Kleeman Jr., CPA/ABV, ASA (OnPointe Financial Valuation Group LLC), writes about the buildup approach in our "Tales From the Trenches" series. Read more >>

In a recent article from the Business Valuation Update, we covered a court case that was a good example of a cost of capital analysis gone awry. One of the problems the financial expert had was trying to use her professional judgment on one of the inputs, but the data she used did not support her opinion. So she found herself in the uncomfortable position of trying to explain why she chose not to go where the data were leading her. Read more >>

The various attributes of a veterinary clinic, such as location, the affluence of clientele, and the quality of medicine practiced, may all be outstanding and provide support for value considerations in veterinary practices. However, such characteristics do not provide insights into the profitability of the practice. Read more >>

Mark Twain said there are “lies, damned lies and statistics.” Some valuation experts may be uncomfortable using statistics in an engagement. But you don’t have to be a statistics guru to successfully use them when the engagement calls for it. For instance, many damages litigations include the use of regression analyses and/or statistical sampling. Both are statistical methods of determining the amount of damages in a dispute. Read more >>