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
New World of Energy Valuations, Per Speakers at the ASA Houston Conference
How have valuations been upended in this sector? What’s the outlook for all of the regulatory and tax proposals? When will this sector rebound? The answers may surprise you.
Are International Standards for Intangible Assets Adapted to Most Companies?
Editor’s note: International accounting and reporting standards affect many U.S. companies because of cross-border transactions, M&A activity, and the reporting demands of stakeholders outside the U.S. This article examines the International Financial Rep ...
Exceeding Auditor Expectations: A Guide to IP Valuation Reports
Today’s financial auditor is often fundamentally challenged when auditing a company’s intellectual property (IP) portfolio. The auditor may be subject to errors and omissions liability when trusting a third party’s independent appraisal. It is not enoug ...
Using Company-Specific Risk in the Delaware Chancery Court
For Delaware courts, discounted cash flow analysis has become the principal valuation methodology for determining going concern value of an entity. In Cede & Co. v. JRC Acquisition Corp., Civil Action No. 18658-NC, 2004 WL 286963, at 2 (Del. Ch. Feb. 10 ...
Adjustment Mapping and the Public-vs.-Private-Company Discount Debate
Editor’s note: This article advances the discussion in the article “Private Company Discounts Are Not Caused by Lack of Marketability” that Gilbert Matthews wrote for the June 2016 issue of Business Valuation Update. The author of this article joins the c ...
Sneak Preview of New Material in the BVR/AHLA Healthcare Valuation Guide
The valuation community breathed a sigh of relief when the Department of Labor removed appraisals entirely—not just ESOP appraisals—from fiduciary treatment in its final rules designed to strengthen retirement security. But the appraiser-as-fiduciary iss ...
Errors and Omissions in DCF Calculations: A Critique of Delaware’s Dr Pepper Appraisal
The recent statutory appraisal of Dr Pepper Bottling Holdings, Inc. (“Holdings”) by the Delaware Chancery Court in Crescent/Mach I Partnership v. Turner 1 raises several conceptual and computational issues concerning discounted cash flow (DCF) valuations ...
The Cost Approach May Be the Best for Construction Firms—Here’s Why
The nature of construction firms is such that the use of some valuation approaches may pose problems. Although the valuation of construction firms may be speculative, in many cases, the U.S. Tax Code and the Financial Accounting Standards Board’s Accounti ...
Avoiding the Valuation of Referrals in a Healthcare Context
When valuing an arrangement that involves a healthcare entity and physicians, valuation analysts must proceed with a great deal of caution. The valuation cannot—in any shape or form—be based on any consideration of anticipated referrals. If it is, the hos ...
Obsolescence Analysis Kills Tax Court’s Property Valuation
State high court rejects tax court’s external obsolescence calculation related to special purpose property valuation, finding it represents an insufficiently explained departure from the methods the parties’ experts used and lacks support in the record.
Shaky Industrial Plant Valuation Survives High Court Review
Tax court adopts taxpayer expert’s value of the loss determination underlying real market valuation of industrial plant; state’s high court affirms but notes unresolved contradiction in financial feasibility analysis underpinning expert’s final valuation.
Reduction for Obsolescence and Trademark Rights Key to Ad Valorem Tax
The Georgia Court of Appeals heard this appeal from the Macon-Bibb County Board of Tax Assessors.
Billion-Dollar Transfer Pricing Case Turns on Testimony of ‘Incredible’ IRS Experts
IRS loses billion-dollar transfer pricing case based on expert’s wrong determinations of cost of capital and more.
Golf Course Valued Using the Cost Approach
The Hawaii Supreme Court reversed the real property valuation of a hotel's golf course.
In Allocation Dispute Related to § 363 Sale, Bankruptcy Court Bridges Experts’ Value Gaps
Bankruptcy court performs allocation analysis to divide proceeds from section 363 asset sale between two competing lenders, finding debtor’s intellectual property is most valuable asset; court notes that, at time of sale, debtor was neither healthy going concern nor subject of forced liquidation.