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Stay appraised of all the latest business considerations in the jewelry industry! The report explains how jewelry stores operate, the nature of their revenue streams, value drivers, the industry environment, the risks involved, and other key factors.
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Wanted: Sample IRS forms for PDF extraction testing
Nambri TaxXL is a new application that automates the conversion of PDF tax returns into an Excel spreadsheet.
Valuation expert’s credibility takes several hits
In a New York fair value case, one of the 50% owners filed for dissolution and the other owner elected to buy him out.
Business Valuation Cases in Brief
Erin Hollis provides updates on six recent business valuation cases.
Property Rights and the Real Estate Appraiser
This article provides the business appraiser with a better understanding of how real estate appraisers think about property rights and the distinctions they make between fee simple and leased fee estates. It also discusses two areas where a property rights issue could lead to understating intangible assets in real estate centric entities. Two brief case studies are used to demonstrate where problems can arise and how to resolve them. This is a primer to foster ...
Implied Control Premiums Through Delaware Appraisal Decisions
The valuation industry has utilized the concepts of control premiums and corresponding discounts for lack of control (DLOC) for decades. There has been considerable debate regarding the application of control premiums paid to acquire public companies, given the likely existence of synergies embedded within those premiums. This article analyzes implied control premiums using Delaware Court of Chancery (the “Court”) decisions in which the Court determined the fair value of the shares of formerly public companies.
From the Editor
A few updates.
From the Chair
Thank you for being a subscriber of the Business Valuation Review (BVR). This long-standing publication of the American Society of Appraisers has been in existence since Spring 1982 and was previously titled Business Valuation News until 1985.
Power Panel: How Should Healthcare BV Practice Change in Response to the New Stark Regulations?
In this power panel discussion, key thought leaders in healthcare business valuation discuss the ramifications of the recent update to the Stark regulations on BV practices.
Wong v. Wong
The defendants and plaintiffs were all family members who co-owned seven apartment buildings that the defendants managed. The defendants embezzled profits from the buildings for at least a decade. On appeal, the defendants conceded plaintiffs were entitled to an award of both compensatory and punitive damages based on their wrongdoing, but they challenged the amount of the awards. The appellate court agreed that the punitive damages were excessive as a matter of law and adjusted them. All other defendants’ contentions were rejected, and the trial court was affirmed in those matters.
California Appeals Court Reduces Punitive Damages as Being Excessive
The defendants and plaintiffs were all family members who co-owned seven apartment buildings that the defendants managed. The defendants embezzled profits from the buildings for at least a decade. On appeal, the defendants conceded plaintiffs were entitled to an award of both compensatory and punitive damages based on their wrongdoing, but they challenged the amount of the awards. The appellate court agreed that the punitive damages were excessive as a matter of law and adjusted them. All other defendants’ contentions were rejected, and the trial court was affirmed in those matters.
BV Firm Billing Rates Shot Up in 2022
The vast majority (83%) of business valuation firms increased their billing rates in 2022, according to preliminary results of BVR’s benchmarking survey. This is a much greater percentage than the last survey (2018) found, when 60% of respondents said they raised rates. Increases ranged from 3% to 25%, with an average of 11%.
ASA Looks ‘Beyond’ Valuation to How to Build an Appraisal Career
A first-of-its-kind event in the valuation profession was the 2023 Beyond Valuation—Professional Development and Growth Conference hosted by the American Society of Appraisers (ASA) and sponsored by Empire Valuation Consultants. It focused on appraisal career development for those professionals who are just beyond the initial stages of their careers.
Specialization Is the Key to Appraisal Career Success
A recurring theme throughout the 2023 Beyond Valuation—Professional Development and Growth Conference was the advice to specialize. Here is a basic plan to follow to achieve specialization.
Takeaways From ASA’s ESOP Virtual Conference
ESOP valuation basics, sell-side transactions, issues with mature ESOPs, and common critiques with valuations in litigation were the topics of discussion at ASA ESOP Virtual Conference.
Canada vs. U.S. Valuations: CBV Institute Conference Reveals Some Nuances
At the CBV Connect 2023 annual conference of the CBV Institute, Canada’s valuation professional organization (VPO) and standard-setter, it was interesting to note some of the differences between the standards and practices of valuations in Canada and the U.S.
BV News and Trends August 2023
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends August 2023
Business valuation news from a global perspective.
Valuation Implications of the Changing ESOP Litigation Landscape
The tide has started to turn with respect to litigation over ESOP valuations, speakers reported at the recent ASA ESOP Virtual Conference. There has been a major court victory and pressure from the ESOP and valuation profession, and now the DOL has committed to moving forward—hopefully— with long-awaited regulations on the valuation of company shares to be bought by an ESOP.
Paramount Fin. Commc’ns, Inc. v. Broadridge Inv’r Commc’n Sols., Inc.
In a post-judgment order and opinion, the court struck the testimony of the plaintiff’s damages expert witness and ordered a new trial on damages. The plaintiff moved for reconsideration of the order. The court denied the plaintiff’s motion in this breach of contract case. There was insufficient evidence in the record to support the damages calculation.
On Reconsideration, Court Affirms Decision to Exclude Testimony of Damages Expert
In a post-judgment order and opinion, the court struck the testimony of the plaintiff’s damages expert witness and ordered a new trial on damages. The plaintiff moved for reconsideration of the order. The court denied the plaintiff’s motion in this breach of contract case. There was insufficient evidence in the record to support the damages calculation.
Don’t get stung by a bad review of your valuation report
Shawn Hyde (Canyon Valuation) has been reviewing the reports of other valuation experts for years.
BV practice marketing budgets hold steady for 2023
Since most business valuation firms and practices are very busy, it’s not a great surprise that marketing budgets for 2023 are about the same as 2022 levels, according to the 2023 BVR Benchmarking Survey.
NACVA ‘blown away’ by ChatGPT
David Fein of ValuSource recently gave a demo of ChatGPT to Parnell Black, CEO of the National Association of Certified Valuators and Analysts (NACVA).
2023 Stout restricted stock study guide now available
The 2023 edition of the “Stout Restricted Stock Study Companion Guide” is now available, and it reflects updated tables and graphs that contain new transactions.