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 June 2020
Business valuation news from a global perspective.
Hot BV Topics From the AICPA FVS Conference
Almost 1,000 attendees at the AICPA Forensic & Valuation Services Conference 2013 in Las Vegas learned about the latest developments in business valuation. Among the many topics discussed were new perspectives on the value of control, how valuation report ...
BV News and Trends October 2021
A monthly roundup of key developments of interest to business valuation experts.
Dynamic Defense and Government Services Market Creates Opportunities for Valuation Practitioners
The defense and government services sector faced an uncertain climate in early 2010, but by the end of the year, the levels of M&A activity had risen to a level not seen since the 2006-2007 peak. Increasing M&A activity always drives demand for business v ...
Business Valuation Year in Review 2016
It was an eventful year for the business valuation profession in 2016, both from a U.S. and global perspective. Here is a wrap-up of some of the more notable developments, some of which set the stage for 2017 and beyond.
BV News and Trends March 2024
A monthly roundup of key developments of interest to business valuation experts.
Gems From the ASA Advanced BV Conference in New York City
Notable sessions at the American Society of Appraisers 2019 Advanced BV Conference included a panel that included a state supreme court judge who answered questions very candidly, tips from IRS representatives, several sessions on the size effect, and more.
Quantifying Company-Specific Risk: A New, Empirical Framework With Practical Applications
In this article, the authors have refined their earlier work1 by providing a detailed example of how to select a company-specific risk premium (CSRP) for a privately held company using benchmark CSRPs derived from guideline publicly traded companies.
BVU Profiles: Pablo Fernandez - More Common Sense—Less Theory and Models—Needed in Business Valuation
Pablo Fernandez is a professor in the department of financial management at the University of Navarra—IESE Business School in Spain (ranked No. 5 in the world for full-time MBAs). A widely published author, he conducts a survey of market risk premiums and ...
Revisiting the Meaning of Fair Market Value
We all know the classic definitions of fair market value from Revenue Ruling 59-60 and the International Glossary, which I’ll repeat here for sake of clarity (see sidebar). At its core, fair market value (FMV) asks the appraiser to answer the question of ...
Global BV News and Trends February 2022
Business valuation news from a global perspective.
Adjusting the Restricted Stock Transactions to Estimate Marketability Discounts
The courts have been critical of using restricted stock studies to estimate a discount for lack of marketability (DLOM). In particular, they question the use of averages culled from historical studies without specific reference to subject companies and st ...
Coping With the Challenges of Valuing a Cannabis-Related Firm
Editor’s note: Valuing a cannabis-related business is not much different from valuing any other business except for one important fact: This business is based on a product that is illegal to grow or sell under current federal law. How this challenge is de ...
Cellular Telephone: An Interesting Decision for Valuation Practitioners
A recent Delaware decision in a breach of fiduciary duty case awarded more than triple the amount originally paid to partners who were squeezed out of their collective 1.881% interest in a partnership. Several aspects of this decision are of particular interest to valuation practitioners, especially those whose practice includes litigation services. The case is: In Re Cellular Tel. P’ship Litig.; 2022 Del. Ch. LEXIS 56 (Cellular).
A Veteran Valuer’s Guidance on COVID-19 and the ‘Soul’ of a Business
An interview with Robert Schlegel, FASA, MCBA (Houlihan Valuation Advisors), in which he gives his perspectives on our current economic environment and how that affects the business valuation community.
BV News and Trends May 2022
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends September 2019
A monthly roundup of key developments of interest to business valuation experts.
Novel Beta Method Occasions Rebuke From Court of Chancery in Appraisal Case
In appraisal proceeding, Court of Chancery adopts petitioner expert’s DCF-based model for calculating fair value, making slight adjustment to expert’s size premium; on beta calculation, court finds respondent expert’s novel approach “does not survive judicial scrutiny” and raises Daubert issues.
In re PLX Tech. Stockholders Litig.
Chancery says plaintiffs proved directors breached fiduciary duties and duty to disclose but failed to prove damages; court rejects plaintiff expert's DCF analysis, noting problematic projections and beta; “real-world market evidence” shows company was not worth more than deal price.