Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
Global BVU News and Trends January 2020
Business valuation news from a global perspective.
Top Ten Issues to Note When Selecting COC Data in Volatile Times
Deriving a defensible cost of capital (COC) for the capital asset pricing method (CAPM), modified CAPM, or the build-up method is frequently the most contentious issue in litigation involving the valuation of private companies or economic damages. Moreove ...
The Implied Private Company Pricing Model (IPCPM) Ko = (FCFF1 / P) + g
Editor’s Note: The authors have developed a model designed to be more reliable than the build-up method for estimating the cost of capital of a small privately held business. This model uses the authors’ new Implied Private Company Pricing Line 2.0 (IPCPL ...
And the Survey Says!
On October 17, the BV Wire posted a survey asking about some of the valuation issues long thought settled, with particular emphasis on elements of the discounted cash flow (DCF) method that, in practice, can still be troublesome.
BV News and Trends August 2023
A monthly roundup of key developments of interest to business valuation experts.
Exclusive Survey Reveals BV Research Sources of Choice
Information is the lifeblood of a business valuation practice. Your credibility and competitive advantage hinges on the sources of data you use. BVR recently collected data concerning research sources valuation experts rely on most. BVU has examined the p ...
BVU News and Trends April 2023
A monthly roundup of key developments of interest to business valuation experts.
ASA Continues Peer Review of Total Beta v. Beta
The “hot ticket” at the ASA Advanced BV Conference in Boston in October was the panel on total beta v. beta. The two sides agree that there are problems with applying total beta concepts to non-diversified private companies ...
BVR and Duff & Phelps Cost of Capital Platforms Go Head-to-Head at VSCPA
Both platforms give similar results when estimating the cost of capital for private firms. They were put through their paces at a recent conference presented by the Virginia Society of CPAs.
Assessing Additional Economic Risk Due to COVID-19
A template that can serve as a framework of thinking about the impact of the coronavirus on a subject company. The author presents a series of questions that help assess the short- and long-term risks with respect to the subject company’s industry, physical operations, financial issues, and firm management.
Adjusting the Income Approach Highlights AICPA FVS Conference Panel
A panel at the AICPA FVS Conference fielded a barrage of audience questions about how to help make sure the income approach captures the impacts of the current environment. The panel, moderated by Jim Hitchner (Financial Valuation Advisors), included Lisa Cribben (Wipfli LLP), Harold Martin (Keiter), and Mark Zyla (Zyla Valuation Advisors LLC).
It’s in There! So What Else Is Included in Your Estimated Cost of Capital?
In a long-running TV ad for spaghetti sauce during the 1980s, a pitchman repeatedly responds to inquiries about the product’s ingredients with the phrase: “It’s in there!” This response might also apply to your estimated cost of capital.
Cost of Equity and COVID-19: What to Do? (Update)
Using a forward-looking approach, implied volatilities, and total beta to determine an appropriate cost of equity to supplement one’s analysis during today’s unprecedented times.
Global BV News and Trends June 2021
Business valuation news from a global perspective.
Equity risk premium: What is the current evidence?
Are you aware of recent research questioning the use of those realized equity premiums as an estimate of the equity risk premium (ERP)? Or do you simply choose to ignore the research?
BV Community Reacts to New Cost of Capital Tool
Feedback was swift from the valuation community on the implied private company pricing line (IPCPL), a new method to estimate the cost of capital for private companies. An article explaining IPCPL was published in the September 2013 issue of Business Valu ...
Debate Rekindles Over Private Company Cost of Capital Model
A recent issue of The Value Examiner devotes a good deal of space to the implied private company pricing line (IPCPL), a model designed to better estimate the cost of capital for small private companies (those with revenues below $150 million). The model ...
Valuation Concepts Have Undergone Massive Changes in Thinking
It’s difficult to think of any valuation concept or methodology that has not undergone significant changes in thinking since 1995, when Business Valuation Update was first published. Also, there is a continued questioning of standard practices and convent ...
BVU News and Trends April 2021
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends April 2018
A monthly roundup of key developments of interest to business valuation experts.
What to Know From the 2023 ASA International Conference
A recap of several sessions on topics that include the main takeaway from the keynote, use of data amid uncertainty, divorce engagements, SAFE investments, the three-stage DCF, IRS targets, ESG issues, and more.
Some Key Takeaways From the ASA Advanced BV Conference
A sneak preview of the upcoming classic book on cost of capital, new opportunities arising from the growing popularity of dividend recaps, the latest key Tax Court cases, how healthcare reform is transforming valuations in this industry—even valuing a spo ...
BVU News and Trends October 2020
A monthly roundup of key developments of interest to business valuation experts.
Changes in Regs and Standards Take Center Stage at ASA Fair Value Event
A slew of new and proposed changes to government standards, accounting rules, and valuation profession matters took the spotlight at the 11th Annual Fair Value Conference in Los Angeles. The American Society of Appraisers and the University of Southern Ca ...
Canada vs. U.S. Valuations: CBV Institute Conference Reveals Some Nuances
At the CBV Connect 2023 annual conference of the CBV Institute, Canada’s valuation professional organization (VPO) and standard-setter, it was interesting to note some of the differences between the standards and practices of valuations in Canada and the U.S.