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
The World of DLOM According to the IRS: What Should Appraisers Do?
After spending 28 years with the IRS—during which he earned his ASA and AVA credentials and managed a territory of appraisal engineers spanning up to 23 states—Michael Gregory, currently a private consultant and mediator, has amassed the kind of experienc ...
The 10 Most Important Valuation Cases of 2016
Because valuation and damages are key components of most lawsuits, there is no shortage of cases addressing issues of interest to appraisers and financial experts. For several years now, BVLaw has provided a list of the cases that stood out during a given ...
Two Ways to Treat the Vanishing Bonus Depreciation Tax Break
Michelle Gallagher and Nathan Olberding (both with Adamy Valuation) present a nice example of how to consider the sunsetting of the bonus depreciation rules in a valuation. The rules were enacted by the Tax Cuts and Jobs Act (TCJA).
BV News At-a-Glance
A monthly roundup of key developments of interest to business valuation experts.
Mercer Examines the State of the BV Profession
In a keynote address at the Business Valuation and Financial Litigation Super Conference hosted by the National Association of Certified Valuators and Analysts (NACVA), Chris Mercer (Mercer Capital) addressed the aging of the profession, consolidation, how the VPOs are adapting, and what the future might hold for valuation theory.
LEAPS on ETFs: Your Absolutely Lowest Reasonable DLOM
Some appraisers have argued that a holding of U.S. government bonds in a family limited partnership requires a very small discount for lack of marketability (DLOM) or perhaps no discount at all. If the valuation date were Dec. 12, 2012, I suggest the disc ...
Anatomy of an Inflated Valuation Report
I recently had the chance to review a valuation report for a family limited partnership prepared by what I believe to be a reputable firm. By my standards, the report is huge—142 pages. It contains some very good material, but a lot of it is boilerplate a ...
Rollover Equity: Don’t Just Take It at Face Value
The rights and preferences of rollover equity compared to the private equity sponsor’s shares and the sources of deal financing have important implications for valuation.
Strong Pushback of Sec. 2704 Regs at IRS Hearing
An unprecedented number of speakers testified at the December 1 IRS hearing to fight the controversial proposed Section 2704 regulations. The regs, designed to curb estate valuation discounts for minority interests, are so broad and convoluted that they s ...
Top Experts Converge at The Recent DLOM Summit
The first-ever Summit on Discount for Lack of Marketability (DLOM), co-sponsored by BVResources and the University of San Diego School of Law, brought together the top thought leaders and an unprecedented slate of professionals on this critical and contro ...
The Cost Approach: A Viable Method for Determining the Value of a Small Business in Divorce
Valuing a small family-owned business can be much more difficult than valuing a large, well-established business, especially in the context of divorce, due to concerns about the quality and availability of the required information. Divorce is often the fi ...
Key Valuation Considerations for Fairness Opinions
Fairness opinions are frequently finding their way into a courtroom, so it is important to have a grasp on both the legal and financial aspects. Craig Jacobson and Richard Peil, who are both with GlassRatner Advisory & Capital Group, and attorney Jeffrey ...
Valuation Matters Highlighted in the Estate of Cecil
A discussion and the valuation implications of several issues in this case: tax affecting an S corporation, applying an asset approach to value a going-concern business, reliance on a single comparable company, and discounts applied to arrive at per-share value.
DLOM Summit II: Four Leading Experts Differ by ‘Only’ 15 Percent
For the second year in a row, valuation analysts and attorneys assembled at the University of San Diego School of Law s Business Valuation and Tax Conference, co-sponsored by BVR, NACVA, and Valuation Products and Services (VPS). One year ago, we confirmed that the discount for lack of marketability is the most important discount in valuation, U.S. Tax Court Judge Laro said in his opening remarks. The first DLOM Summit brought together several thought leaders including proponents ...
Business Valuation Terms Need Restructuring Based on Value Drivers
The business valuation profession suffers from a muddling of concepts and terms. It is time to think about a recalibration of valuation terms that grows out of the foundation that has been laid by our original business valuation pioneers.
Getting the Facts: A 32-pt Checklist for Fractional Interest Valuations
When valuing asset holding companies and common tenancy interests, business valuation must connect with real estate and other asset appraisal specialties, and also consider a wide array of facts and circumstances—such as market conditions and data, owners ...
Book Review: A Consensus View—Q&A Guide to Financial Valuation
All valuation practitioners have been confronted with a difficult issue that was not addressed in a traditional textbook. Moreover, there appear to be alternative schools of thought without a clear consensus for numerous controversial issues. When faced w ...
Emory responds to Dr. Bajaj: miniscule adjustments warranted
In this article, John Emory and his colleagues address Dr. Bajaj's criticism of their pre-IPO discount for lack of marketability studies ( BVU , March 2002, pp. 12-14). The result is no adjustment to ...
Recap of the IRS Valuation Summit 2013
Professionals who practice trust and estate work have been exceedingly busy in recent years, even though estate and gift taxes only impact 0.3% of U.S. taxpayers. While these taxes raise only $10 billion to $15 billion annually, the primary payers are wea ...
Rethinking the Traditional Levels of Value—Continuing the Conversation
While the representation of a hierarchy of value has served generations of business valuers well, it now needs to be reshaped. One concern is that the hierarchy has at its core the concept of the control premium, a concept that has become strained beyond the breaking point.
AICPA Business Valuation Essentials: Cutting-edge training for business appraisal services
In this issue we present a detailed description of the AICPA’s newly revamped 2005 Business Valuation Essentials educational program.
A Fresh Look at Using the Income Approach to Valuing FLPs
When I value minority interests in a family limited partnership (FLP), I will do an income approach, but I will not enjoy it. All too frequently, the FLP does not generate regular distributions or regular profits.
Pass-through entity discounts for built-in capital gains taxes
What to do about appreciated assets in pass-through tax entities such as partnerships, LLCs, and S corporations.
Global BVU News and Trends May 2024
Business valuation news from a global perspective.
After McCord: The Future Of FLP Valuations and Discount Determinations
After three years on appeal, the Fifth Circuit’s recent reversal of McCord v. Commissioner (see last month’s BVU) freed the author—the taxpayers’ original valuation expert—to comment on the Tax Court case, its impact on valuations, and more.