News Category: business valuation standards & regulations
05
/ April
2022
AICPA Issues a Bridging Document to the International Valuation Standards
The AICPA has issued a bridging document to move a VS100 valuation engagement to an IVS-compliant valuation engagement. Learn more about what this might mean for the BVLS field. Read more >>
Posted in: Business Valuation Law News
Written by: Jim Alerding
Categories: business valuation standards & regulations
Categories: business valuation standards & regulations
31
/ August
2021
Get a Sneak Peek at Trends, Valuation Multiples, and Operation Ratios for Small, Main Street Private Companies
BIZCOMPS, a comprehensive online database with financial details on small, Main Street private companies, has been recently updated with new transactions, and the current BIZCOMPS/BVR Deal Review (BDR), exclusively for subscribers, is now available. This special publication analyzes general trends, valuation multiples, and operating ratios for transactions in the database. Get a sneak peek at the Summer 2021 issue with highlights including harmonic mean and median sale price, median SDE/rent, and more. Read more >>
24
/ August
2021
The Story Behind Your Valuation: Damodaran’s Five-Step Framework
One of the lessons learned from the COVID-19 crisis is that a coherent narrative is more important than ever in business valuation, says Dr. Aswath Damodaran, of New York University Stern School of Business, who gave the keynote address at the CBV Congress 2021. A valuation needs a marriage of narrative and numbers, Damodaran says. In a good valuation, the numbers are “bound together” by a coherent narrative, and storytelling is kept grounded with numbers. Too much emphasis on numbers can make valuations mere “plug-and-point exercises” that may be perceived to be sales pitches or a confirmation of preconceived values. Read more >>
21
/ July
2021
A Practical, Step-by-Step Process for Applying Invested Capital Premiums
For years, the valuation profession has debated the definition of a control premium, including its distinction from an acquisition premium. What began years ago as a relatively simple question—if there is a control premium, what should it be?—now includes analyzing such concepts as invested capital premiums and equity-based premiums, transaction synergies and strategic values, marketability, and levels of control. All are “key points” to keep in mind throughout the quantification of a control premium, say Tim Meinhart and Nate Novak (both of Willamette Management Associates), who led a webinar on this topic titled Evaluating and Applying Control Premiums earlier this year. Read more >>
25
/ June
2021
Business Valuation’s ‘Dirty Little Secret’
Recent developments have put the spotlight squarely on projected financial information (PFI). The perception is that too many valuation experts simply accept projections and forecasts they’re given without applying enough scrutiny—or any scrutiny at all. Fortunately, there is some new guidance on how to examine and substantiate PFI you get from management or other third parties in BVR’s new Guide to Management Projections and Business Valuation: Analysis and Case Law. The following is an excerpt from that chapter. Read more >>
10
/ May
2021
Professional Standards for Certified Public Accountants, Economists, and Other Financial Experts
Financial experts may be subject to standards of professional practice from a number of sources when they measure lost profits damages and give related expert testimony. The sources can include governmental regulators as well as professional membership organizations and societies. In addition, a technical community may establish professional standards of practice in other ways. Read more >>
27
/ April
2021
Six Tips for Handling Key Issues in Tricky Bankruptcy Valuations
A number of issues have emerged that analysts will encounter when performing a valuation in a bankruptcy context. Valuation analysts who become involved in bankruptcy-related assignments should expect their work to come under a great deal of scrutiny because most of these engagements are done within a litigation or some other adversarial context, cautioned Robert Reilly, a managing director at Willamette Management Associates, during a BVR webinar back in 2017. While his remarks were made a few years ago, they continue to resonate, and a chapter from Business Valuation and Bankruptcy: Case Law Compendium, 3rd edition, contains more of his timeless advice on how to handle the challenges valuation experts will face. Read more >>
Posted in: BVWire News
Categories: bankruptcy business valuation standards & regulations
Tags: bankruptcy litigation
Categories: bankruptcy business valuation standards & regulations
Tags: bankruptcy litigation
16
/ April
2021
Tips and Techniques for Detecting Misrepresentations in Business Interruption Claims
Business interruption insurance claims are on the rise, and analysts need to be on the lookout for misrepresentations. Michael Haugen, CPA, CFF, CFE (JS Held) conducted a session on this at the recent AICPA FVS Conference, and it’s an area where valuation experts would do well to bolster their knowledge and skills in financial forensics. During his session, Haugen gave some tips on how to “sniff out” misrepresentations in these claims. In the recent Business Valuation Update (BVU) article, “14 Ways to Detect Misrepresentations in Business Interruption Claims,” Haugen classifies specific techniques to detect misrepresentations in business interruption claims. Read more >>
Posted in: BVWire News
Categories: business valuation standards & regulations forensic accounting
Tags: AICPA AICPA standards business interruption business valuation
Categories: business valuation standards & regulations forensic accounting
Tags: AICPA AICPA standards business interruption business valuation
22
/ March
2021
Seven Techniques to Consider When Calculating Damages for Early-Stage Companies
Measuring lost profits damages for new or early-stage businesses can be a daunting task. Traditional damage analyses that rely on historical results are often meaningless since, by definition, startup companies usually lack a track record of operating results. Without an historical operating history for measuring lost profits, the damages expert walks a thin line between speculation and a reasoned analysis. Under most circumstances, to be admissible evidence, damage analyses require relevant and reliable factual bases. These legal and evidentiary requirements are often heightened when measuring damages for new businesses. Read more >>
03
/ March
2021
Insights, Tips, and Practical Advice From the AICPA Forensic and Valuation Services Conference
The 2020 AICPA Forensic and Valuation Services (FVS) Conference held this past November was loaded with great speakers and interesting sessions—so much so that we can’t include everything. Here are some key takeaways from the early sessions we attended. Read more >>
24
/ February
2021
Top Expert Answers for Today’s Tough BV Questions
In BVR’s recent webinar, Power Panel: Live Expert Answers for Today’s Tough BV Questions, experts Jay E. Fishman, Michelle Gallagher, Ken Pia, and Jeffrey Tarbell covered various hot topics that affect the business valuation profession. These questions ranged from the basics, such as “What will 2021 look like?” to “What are your thoughts on the current state of the ESOP litigation environment particularly with the new administration coming in?” Here, we summarize five of the questions and answers. For more information, be sure to check out the complete recording and transcript of the session. Read more >>
01
/ January
2021
Business Valuation Year in Review 2020
What a year! In its 25 years, Business Valuation Update (BVU) has not seen anything quite like the year 2020. Virtually everything in the practice of business valuation changed, and BVU chronicled these developments as well as the latest thinking in methodologies, changes in regulations, court cases, new and updated resources, and practice-building ideas. Here’s a sampling of what we covered in 2020. Read more >>
24
/ November
2020
10 Signs of Trouble with a Valuation Expert
It’s always very informative and helpful to listen to judges talk about the valuation cases they hear. At its annual conferences, NACVA regularly presents sessions with judges. At its Business Valuation and Financial Litigation Super Conference in June, a session included a panel of four judges and one moderator. The panelists shared their views of when they detect potential problems with appraisers when they are on the witness stand. Read more >>
19
/ November
2020
Valuing Full-Service Restaurants: Six Key Considerations in Today’s Market
The final chapter on the impact of the pandemic on the full-service restaurant sector has yet to be written. In the meantime, thinking continues to evolve on conducting valuations in the current environment. In a new special report, What It’s Worth: Valuing Full-Service Restaurants, BVR covers the fundamentals and unique considerations for restaurant valuation—as well as how to assess the long-term outlook for consumer preferences and financial performance. Based on conversations, webinars, and conference sessions with many valuation experts, here are six pandemic-related issues you should consider. Read more >>
Posted in: BVWire News
Categories: business valuation standards & regulations valuation profession news
Tags: business valuation COVID-19 restaurant
Categories: business valuation standards & regulations valuation profession news
Tags: business valuation COVID-19 restaurant
30
/ September
2020
The Benefits of Establishing Reasonable Compensation
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 >>
Posted in: BVWire News
Categories: business valuation standards & regulations compensation
Tags: compensation RCReports
Categories: business valuation standards & regulations compensation
Tags: compensation RCReports
22
/ September
2020
Business Valuation Practitioner Specializations Are Gaining Momentum
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 >>
Posted in: BVWire News
Categories: business valuation standards & regulations valuation experts
Tags: business valuation profession specialization
Categories: business valuation standards & regulations valuation experts
Tags: business valuation profession specialization
29
/ June
2020
Highlights from the 2020 NACVA Virtual Super Conference
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 >>
03
/ June
2020
Cybersecurity Risk in the Business Valuation Profession
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 >>
Posted in: BVWire News
Categories: business valuation standards & regulations company-specific risk
Tags: cybersecurity
Categories: business valuation standards & regulations company-specific risk
Tags: cybersecurity
03
/ March
2020
10 Unique Factors That Drive Paving Company Value
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 >>
Posted in: BVWire News
Categories: business valuation standards & regulations
Tags: business valuation construction
Categories: business valuation standards & regulations
Tags: business valuation construction
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