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
Discounts for fractional interests
The March 1998 issue of Business Valuation Update (p. 12) discussed Williams v. Comm ., No 219-96, 220-96, 221-96, 1998 WL 55347 (U.S. Tax Court Feb. 12, 1998), in which the Tax Court app ...
Mercer set record straight re Estate of Welch case
Last month (p.3) we reported the U.S. Tax Court case of Welch v. Commissioner , in which the sole issue was a discount for built-in capital gains taxes on real estate owned by operating com ...
Matthews critiques Mercers Simplot case review
Chris Mercer reviewed the Simplot case in the May 1999 issue of BVU , page 1. Gil Matthews, an IRS expert in the case, offers the following critique of Mercers review.–SP In his review ...
Reader Survey responses 1996
We are grateful for the hundreds of enthusiastic responses to the Reader Survey included with our May issue. We have tabulated the numerical responses, and I have personally read all the com ...
Adjusting usually inappropriate when valuing a minority interest
I have read both in your books and in the Reader/Editor Exchange of your newsletter how certain adjustments, or lack thereof, consider a closely-held companys earning capacity in light of t ...
ASA and CICBV join forces for the 5th Joint Advanced BV Conference in Orlando
Part 1 of 2 Evolution and outlook for the north American securities market Mark E. Lackrit Securities Industry Association Washington, D.C. This presentation given by the pr ...
Does the ‘Myth of Liquidity’ Lead to Incorrect Discounts?
“We’ve agreed to accept the myths that our markets are liquid, marketable, and resilient—in other words, there are large numbers of traders, a large volume of trading, and trading is efficient and cost-free,” Ashok Abbott, MBA, Ph.D (West Virginia Univers ...
The 2002 AICPA National BV Conference brings lively debates,
Conference CoverageClick here for full conference presentation (Shannon Pratt) Point/Counterpoint: How Large are Discounts for Lack of Marketability? Shannon P. Pratt Willamette Management AssociatesPortland, Ore. Mukesh BajajLECG, LLCEmeryville, Calif. Our editor-in-chief presented empirical evidence of marketability discounts in the form of results from the pre-IPO studies and the restricted stock studies. The U.S. Tax Court has tended to understate discounts for lack of marketability for most private company minority interests ...
Clearinghouse debacle illustrates value of marketability
Investors love liquidity, and are willing to pay a high premium to achieve it. Conversely, relative to otherwise similar highly liquid securities, investors demand a high discount for lack of li ...
Speakers discuss landmark cases, market approach and discounts
This report concludes our coverage of the Nov. 15-17 AICPA Business Valuation Conference. For summaries of other presentations and a list of audiotapes available, see BVU December, 1998, pp. 1-4.
Limited Partnership study documents large discounts from net asset value
Good guideline-company market data is the key to documenting discounts from net asset value for valuations of interests in holding companies, especially family limited partnerships. The data developed by Partnership Profiles’ editor Spencer Jefferies come as close as anything currently available to filling this need for the business appraiser. This article summarizes the latest findings and describes the scope and cost of the underlying data now available. -SP Partnership Spectrum’s 1996 study of 1,970 transactions ...
Laro gives words of advice to BV experts
Judge David Laro of the U.S. Tax Court spoke at the 1999 AICPA Business Valuation Conference held in Las Vegas Dec. 5-7. He gave us insight into the Tax Court's views on valuation issues and what the ...
Excellent speakers and varied topics at the AICPA’s 2004 business valuation conference (Part 1 of 5)
The AICPA’s 2004 National Business Conference took place at the JW Marriott Orlando Grande Lakes Resort in Orlando, Florida (November 7-9, 2004).
2003 AICPA BV conference brings record attendance - Part 4
The 2003 AICPA National Business Valuation Conference took place in Phoenix, Arizona. Find part 1 of this article in the March 2004 issue; part 2 in the April 2004 issue; and part 3 in the M ...
Record attendance and strong presentations at AICPA BV conference
n PAINTING A MASTERPIECE – THE CREATION OF AN EFFECTIVE VALUATION REPORT Kevin Yeanoplos, CPA/ABV Beacon Valuation Group, Inc. Dressed appropriately ( see accompanying ...
From fair value in financial reporting to the business of celebrity, the 2002 ASA meeting offers variety part 1 of 2
Panelists at the 2002 ASA International Appraisal Conference were (l-r) Donald Dorchester, Carla G. Glass, John E. Bakken, J. Michael Hill, and moderator Gregory A. Gilbert. WHERE WE ARE, WHERE AR ...
2001 ASA International Appraisal Conference, part 1
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Pa., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that this ...
ASA Advanced BV Conference: Lots of options (Part 3 of 4)
The American Society of Appraisers’ 23rd Annual Advanced Business Valuation Conference, held at the Marriott River Center in San Antonio, Texas, October 7-9, 2004 covered the gamut of BV topics, from options valuation and FASB’s proposed fair value rules ...
Appraisals for Tax Purposes: Collateral Damage of the ‘Pomeroy Bill’
With the introduction of H.R. 111-436 (the “Pomeroy Bill”) on January 14, 2009, the valuation of fractional interests in family owned investment entities is threatened with extinction. Valuations requirements for family owned operating businesses would al ...
ASA conference offers valuable insights, part 1 of 2
Charlie Elliott of Howard Barker Frazier & Elliott chaired the business valuation portion of the American Society of Appraisers Annual International Conference held in Houston June 23-25. There wa ...
Institute of Business Appraisers 1996 conference focuses on valuing small to medium-size companies
This report contains brief abstracts of the presentations at the Institute of Business Appraisers conference, Appraising Closely Held Businesses, January 25-26, 1996 in Orlando, Florida. Reade ...
Family Limited Partnerships: Let's get ready to rumble!
The surge in popularity of family limited partnerships ("FLPs") over the past two years has provided both problems and opportunities for the valuation analyst. Due to the significant impact that these ...
AICPA BV ‘Hardball’ Panel Calls for the End of ‘It Depends’
Some of the toughest questions facing business appraisers today flew at the “Hardball with Hitchner” panel assembled at the annual AICPA National Business Valuation Conference in New Orleans Dec 2-4. Moderator Jim Hitchner (Financial Valuation Group) al ...
Two Ways to Get the IRS To Close the File—and More Tips from Nat’l Symposium
“When I look at your appraisal, I pull up the report writing guidelines and BV standards from your society, and see if you’ve complied,” Patrick McKay, ASA, AVA, a Senior Valuation Specialist with the IRS told attendees at the Second Annual IRS National S ...
“Six-Month Wonders” cast doubt on conventional wisdom that IPOs are “at rest” six months out
by Mozette Jefferson I’ve often heard that the “conventional wisdom” is that, if one wants to use a recent IPO as a guideline company in a market approach to valuation, one should wait until it’s been out six months, because that is a reasonable period to be tested in the market and reach an equilibrium or “at rest” trading level. Recent activity suggests that perhaps this period should be more like a year, since we ...