Business Valuation Update

In the December 2021 issue:
  • An Inside Look atthe Landmark ESOPValuation Case
  • Valuers Converge(in Person!) at the ASA International Conference
  • December Tip From the Field
  • Items of Interest Gleaned From the ASA Conference Networking Ops
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Welcome to Business Valuation Update
The Business Valuation Update (BVU) has been the voice of the valuation profession since its inception in 1995. Each monthly issue includes new thinking from leading professionals, detailed reports from valuation conferences, analysis of new business valuation approaches, coverage of “landmark” legal cases in key business valuation issues, regulatory and standards updates, and much more!  Learn more and subscribe >>
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Good News: Key Research on Private Cost of Capital Is Back

On the brink of ending its long run, the Private Capital Markets Project from Pepperdine University has secured funding to continue its ongoing survey of expected rates of return of providers in the private capital market.

Has the Tax Court Become Hostile to Appraisers? Will Ibbotston’s Become Obsolete by Next Year?

For the second year in a row, the Institute of Business Appraisers has held a sold-out, symposium-styled national gathering, informal and yet highly informative. This year’s IBA Symposium in Denver offered two-tracks, limited registration, and four-hour ...

Appraiser Shuns Public Data for Private Cost of Capital

One appraiser has done hundreds of valuations of small owner-operated firms by looking to private capital markets to estimate cost of capital. This eliminates the need to make all of the many assumptions and adjustments to convert data from actively traded stocks into proxies for private-company valuation.

BVU News and Trends September 2020

A monthly roundup of key developments of interest to business valuation experts.

BVU News and Trends March 2019

A monthly roundup of key developments of interest to business valuation experts.

Letter to the Editor: Comments on the Cost of Capital Professional

A user who tested out BVR’s new platform for estimating the cost of capital has some very thought-provoking comments on the use of historical data for the equity risk premium.

BV News and Trends May 2021

A monthly roundup of key developments of interest to business valuation experts.

BVU News and Trends May 2019

A monthly roundup of key developments of interest to business valuation experts.

BVU News and Trends June 2018

A monthly roundup of key developments of interest to business valuation experts.

BVU News and Trends December 2018

A monthly roundup of key developments of interest to business valuation experts.

Looking to Private Markets for Private Firm Cost of Capital

Some valuation experts are not comfortable with the theory that public-company data can be substituted for private value. They see some financial theory risks to the standard valuation process of applying a myriad of judgments and assumptions to convert m ...

Should a Private Cost of Capital Method Replace CAPM and BUM?

Most appraisers recognize the judgments and assumptions built into the process of converting measurable public market data into proxies for private company valuation. Capital asset pricing needs to be “modified” with a series of adjustments to the cost of ...

BV News At-a-Glance

A monthly roundup of key developments of interest to business valuation experts.

Seven Tips on Cost of Capital From the AICPA FVS Conference

There was great interest in the several sessions on cost of capital at the AICPA Forensic and Valuation Services Conference 2015 in Las Vegas. Speakers acknowledged that this is a topic that has evolved into a very complex area with a voluminous amount of ...

BV News At-a-Glance

A monthly roundup of key developments from the standard setters, regulators, and valuation professional organizations (VPOs), plus noteworthy new books, research papers, and studies of interest to business valuation experts.

Use Four Categories of Normalization Adjustments to Get the Best Cash Flow Analysis

“I look at a lot of opposing reports, or reports from friends that are about to get opposed, and I can report that the cash flow statement analysis is often the thinnest part,” said Brandi Ruffalo in her session on normalizing financial statements at the ...

BVU News and Trends July 2019

A monthly roundup of key developments of interest to business valuation experts.

BVR and Duff & Phelps Cost of Capital Platforms Go Head-to-Head at VSCPA

Both platforms give similar results when estimating the cost of capital for private firms. They were put through their paces at a recent conference presented by the Virginia Society of CPAs.

BVU News and Trends February 2020

A monthly roundup of key developments of interest to business valuation experts.

New Fair Value Regs and Credentials Highlight ASA Event

There was record attendance at the American Society of Appraisers’ 12th Annual Fair Value Conference at the University of Southern California in Los Angeles. The reason for the large turnout is the growing importance of fair value for financial reporting ...

Growing Status of Fair Value Sparks Record Attendance at ASA FV Conference

The growing importance of fair value for financial reporting and the ongoing efforts to improve the quality in this area of practice triggered a sell-out for the ASA/USC 13th Annual Fair Value Conference held May 10 in Los Angeles. Here’s a recap.

BVR’s New Cost of Capital Platform Makes Its Public Debut

A record-setting audience of valuation experts got the first look at BVR’s new simple, independent service to estimate the cost of capital. The online platform is designed to augment each appraiser’s own professional judgment and his or her other research.

Book Review: Cost of Capital, Fifth Edition: A True Must-Have

It is a cliché to refer to a book as a “must-have,” but it is true of this fifth edition of Cost of Capital, Applications and Examples by Shannon P. Pratt and Roger Grabowski. If you are at all serious about the valuation of securities, business entities ...

The Implied Private Company Pricing Model (IPCPM) Ko = (FCFF1 / P) + g

Editor’s Note: The authors have developed a model designed to be more reliable than the build-up method for estimating the cost of capital of a small privately held business. This model uses the authors’ new Implied Private Company Pricing Line 2.0 (IPCPL ...

New Study Reveals BV Research Sources of Choice

A survey of business valuation firms asked about research tools used for industry analysis, transactions, premiums and discounts, cost of capital, guideline public company analyses, compensation, valuation-related case law, and more.

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