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
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.
Highlights of 2020 Delaware Valuation Decisions
This article discusses two 2020 Supreme Court decisions and eight decisions by the Court of Chancery.
BVU’s Editorial Board Reflects on the Valuation Profession
BVU has been honored to have so many esteemed valuation professionals on its editorial advisory board over the years. We took the occasion of BVU’s 20th anniversary to invite some current board members to reflect on the state of the profession and the pra ...
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.
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?
Appraisal Malpractice: It’s About Standards, Not the Ultimate Value
In a malpractice action against a real estate appraiser, district court excludes valuation of leasehold interest by plaintiff’s financial expert for failing to comply with any professional standards, and for unreliability under Daubert.
Analysts Not Required to Predict the Future—Only to Probe Present Facts
In assessing fair value and adequate consideration of ESOP transaction, court considers whether appraiser should have reasonable foreseen future events affecting stock and company value.
Analysis Leads Chancery Court to Seek Its Own Valuation
The issue in this appraisal action was the value of the shares of two cellular companies (Janesville and Sheboygan).
Tax Court Determines Methodology, Discounts for Large Block of Public Shares
Tax Court decides appropriate valuation methodology and discounts for a large block (13%) of publicly traded, restricted shares.
Kohler: Textbook Valuation of Large Closely Held Corporation Leads to Total Victory for Taxpayer
A “textbook case” on how to value a large, closely held corporation, complete with discussion of dividend method and appropriate discounts.
Buyout Agreement Short-Circuits Court’s Scrutiny of Appraisals
Court says determination of repurchase price of departing partner’s stake is subject to operating agreement giving defendants absolute control over valuation; absent bad faith conduct, court declines to scrutinize appraisals underlying buyout offer.
Court Rejects Income Approach, Says Stock Worth Adjusted NAV
The major issue was the value of stock in an outdoor advertising sign company (SOAI) that the company redeemed on Jan. 25, 1982.
Global BVU News and Trends September 2019
Business valuation news from a global perspective.
BVU News and Trends September 2019
A monthly roundup of key developments of interest to business valuation experts.
Court Adopts Taxpayer Expert’s Method to Value Unlisted Stock of ‘Severely Distressed’ Company
In tax case, court approves refund, finding value of unlisted stock in distressed closely held company that taxpayer received as part of a settlement was less than stated in settlement agreement; taxpayer’s expert showed market value approach was only suitable method to calculate fair market value.
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.