News Category: discounts & premiums


7 steps to managing an intellectual property engagement

There is an inherent flow to managing an intellectual property valuation engagement. In BVR’s publication, Guide to Intellectual Property Valuation, 2nd edition, author Michael Pellegrino outlines the typical process and steps that a valuation professional may want to follow when performing an intellectual property (IP) valuation. Read more >>

7 Tips for Valuing—and Designing—Buy-In and Buyout Agreements for Medical/Dental Practices

Healthcare valuation expert Mark Dietrich, who has more than 40 years of experience designing and valuing buy-in and buyout agreements, recently wrote an article for the Business Valuation Update identifying a number of best practices for both valuation analysts and consultants with respect to these matters. Read more >>

Post-trial briefs in Vinoskey ESOP trial point to fierce valuation fight

The DOL’s aggressive oversight strategy concerning ESOPs has led to a number of controversial lawsuits, including, most recently, the Acosta v. Vinoskey case, which, in the past few months, went to trial over the DOL's overpayment claim. Read more >>

Top 10 observations on the Tax Cuts and Jobs Act (TCJA) from the perspective of business valuation professionals

BVR caught up with practitioners at the most recent AICPA Forensic & Valuation Services (FVS) Conference to collect some thought-provoking observations on how the Tax Cuts and Jobs Act (TCJA) is impacting valuations. Practitioners are still grappling with understanding the new law’s many provisions, so this list is certainly not exhaustive, and the thinking will continue to evolve. Read more >>

2018 key valuation and damages cases

At year-end, Sylvia Golden, BVR’s executive legal editor, provides a roundup of the key business valuation and damages cases. Here are her choices for 2018. Some of the courts’ decisions have changed the legal landscape and are must-know cases. Other rulings are confined to the specific case, but they contain important lessons for appraisers of how to, and, more often, how not to, perform as a financial expert. Read more >>

Five fundamentals to building a successful business valuation practice within a CPA firm

Robert Kleeman Jr., CPA/ABV, ASA, managing director at OnPointe Valuation, recently wrote an article for the Business Valuation Update outlining five fundamentals that can spell the difference between the success and failure of a valuation practice within a CPA firm. In this post, we briefly cover these five fundamentals. Read more >>

Tips for applying art and science to intellectual property valuations

Valuing intellectual property depends on a broad range of expertise and requires a valuation professional to have more than a cursory understanding of marketing, accounting, finance, scientific and/or applied science, the applicable intellectual property law, statistics, financial modeling, and report writing. Read more >>

Five Hospital Value Drivers That Can Influence a Valuation

Many factors can influence the value of a hospital. It is imperative that a business appraiser undertaking these complex assignments is both mindful and understanding of the unique circumstances and nuances inherent in valuation within this industry in order to generate a sound opinion of value. Read more >>

Court upholds Section 1031 tax ruling, affirming appraisals were unreliable

In 2016, the U.S. Tax Court found for the Internal Revenue Service in a dispute over a series of exchanges that Exelon, the tax payer, designated as section 1031 transactions. The court found these were not like-kind exchanges and expressed dismay over the appraisals the tax payer offered to support its claim for significant deductions. Read more >>

Online global business valuation education from the iiBV, on your schedule and from any location

If you’re looking for global business valuation education—when and where you want it—check out four new e-learning courses from the International Institute of Business Valuers (iiBV) and Business Valuation Resources (BVR). Read more >>

Split high court rules on classification of earnout payment in divorce dispute

The parties’ dispute over how to classify earnout payments related to the sale of a valuable marital asset recently prompted a split ruling from the Minnesota Supreme Court. The issue was whether those payments were part of the sales consideration, as the wife argued, or represented future compensation to the husband, as the district court found. Read more >>

Cannabis: IP Issues in a Budding U.S. Industry

Canada is already facing many challenges after its recent legalization of cannabis last week, including a significant shortage of product and uncertainties about border policies with the United States. Read this post from ktMINE about the IP issues in the budding U.S. cannabis industry. Read more >>

Key Points for Developing Compensation Valuation Report Content for a Healthcare Appraisal

No specific professional standards govern the content and requirements for appraisal reports in compensation valuation (CV), and there is very little professional literature on this topic. In the BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements, author Timothy Smith looks to the business valuation standards and discusses how to adapt and expand on these standards to address areas that are unique to CV practice and appraisal issues. Read more >>

Failure to explain inputs gets expert excluded under Daubert

If more proof is necessary to show that courts across all legal fields dive deep into the details of valuation testimony, a recent damages case that arose in the context of a condemnation proceeding should do the trick. Read more >>

9 trends that impact a law firm’s value

Valuing law firms is very different from valuing other service businesses because they depend on professional reputation and skills, referrals, a high relative intangible asset base, licenses, client relationships, and price sensitivity. In BVR’s special report, What It’s Worth: Law Firm Value, editor Ron Seigneur tackles nine trends that influence the success and reputation of professional services and should be taken into account when valuing law firms. Read more >>

Going-concern appraisals vs. business valuations

Real property appraisers often value special-use properties, hotels, and senior care facilities, to name a few, on a going-concern basis. The term "going-concern" is not defined in the Canadian Uniform Standards of Professional Practice (CUSPAP), although it is defined in The Appraisal of Real Estate, 3rd Edition, wherein the definition is: “All tangible and intangible assets of an established and operating business with an indefinite life.” Read more >>

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