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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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Updated Data Help Appraisers With RULs of Intangible Assets
To estimate the expected remaining useful life (RUL) of an intangible asset, it can be helpful to see how other appraisers have assigned RULs to similar assets in the subject industry. Data on 18 identifiable intangible types (also broken down by industry) culled from almost 16,000 purchase price allocations (PPAs) have been assembled into the third edition of Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations.
Book Review: Can Your Practice Be “Disarmed” by SPARC?
“Why” is the critical word in valuation, says Warren Miller in his new book, Valuation Maps: Valuation Tools that Unlock Business Wealth ...
A SWOT model for quantifying the company-specific risk premium
The valuation community has refined and created methodologies that draw the art closer to a science, with varying degrees of success.
Indefinite Is Not Infinite —Solving a Dichotomy in Trademark Valuation
The valuation of an intangible asset is based on its useful life. For trademarks, appraisers regularly opt for an indefinite life, when no obvious factors exist that would limit the future economic life of the trademark. However, almost all brands are fin ...
Reasonable and replacement compensation in business valuations
Earnings available beyond compensation appropriate for running the business have value, and the task of valuation experts is to convert those earnings into a dollar amount.
Letter to the Editor: Commentary on Recent Statements by the IRS Regarding the Change to Appraisal Reviews
Former IRS manager Michael Gregory comments on recent statements from the IRS and ASA concerning a key issue with appraisal reviews prior to imposing a civil money penalty for valuation misstatements under IRC Section 6695A.
Bright Future for Automated Valuation Models—But Take Caution
Some interesting insights and questions about the use of automated valuation models (AVMs) and artificial intelligence from veteran appraisers.
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 ...
Trade Associations Can Be Excellent Sources of Compensation Data
The biggest problem in developing reasonable compensation for business owners involved in a divorce is finding usable and relevant data to back up your opinion. This is important because reasonable compensation is often the most contentious issue in the c ...
How Fast Do DLOMs Change?
Our studies of LEAPS and the costs of price protection show clearly that discounts for lack of marketability (DLOMs) change over time. But how much do DLOMs change? The answers are: quickly, often, and a lot. The factors causing change appear to be cond ...
Automotive Component and Aftermarket Industries: Where to Find Industry Data
BVR’s recent publication of the 2010 automotive industry transaction report (available at bvresources.com) generated a lot of requests for additional industry benchmarking sources—particularly in the component and aftermarket areas. Both of these industri ...
Pratt’s Document Request Checklist Stands the Test of Time
The new sixth edition of Shannon Pratt’s Valuing a Business does not only contain a great deal of valuation concepts, but also includes some very practical advice and tools. One such tool that has endured is a checklist for an initial request for documents. The list has some minor updates, but it is essentially the same as the one Pratt included in prior editions.
AI Concerns, Experiments Highlight NACVA Confab
This is a recap of several interesting sessions at the December NACVA Business Valuation & Financial Litigation Super Conference in Fort Lauderdale. The sessions discussed ethics issues and presented some demonstrations of how to leverage AI in a valuation practice.
Adjusting Public Multiples: A Summary of Theories and Methodologies
While numerous appraisal texts and authorities discuss adjusting public valuation multiples derived in the context of the publicly traded company method, this is the first, centralized compendium of various related theories and methodologies. Business va ...
Derivatives and their impact on company value (Part 2 of 2)
As Susan says, derivatives are here to stay. In this part 2 of Susan’s articles started in the March issue, she offers a list of questions that the appraiser should ask of a company that uses derivatives. — SP ...
Getting the Facts: A 32-pt Checklist for Fractional Interest Valuations
When valuing asset holding companies and common tenancy interests, business valuation must connect with real estate and other asset appraisal specialties, and also consider a wide array of facts and circumstances—such as market conditions and data, owners ...
Where to Dig for the Value of an Oilfield Services Company
The oilfield services industry, a bright spot in a still somewhat bleak global economic landscape, is expected to see strong growth over the next five years, according to analyst reports. Oilfield services companies are a crucial component of the rapidly ...
Control Premiums and Deal Flow Analyzed in 2019 Mergerstat Review
This is an M&A year in review, highlighting the trends in multiples and sector analysis through the 12,008 transactions of 2018, the sixth most acquisitive year in history. Includes a discussion of the most notable transaction, a twist on a notable cancellation, analysis on the industrial services sector, and the trend in premiums.
Comments on an Article on Attracting More Practitioners to BV
An article in last month’s Business Valuation Update discussed the need to make business valuation a more recognized career path. This article includes some very thoughtful comments by Dr. Michael A. Crain, CPA/ABV, CFA, CFE, an academic and practitioner.
A lawyer's guide to asset-based approaches to business valuation
Generally, asset-based approaches to valuation deal with a simplified view of the net assets and liabilities of a corporation. Fair market value is determined under asset-based approaches by using the ...
Five Critical Requirements For Tax Valuation Reports—According to Judge Laro
It is always a packed and attentive audience when the Honorable David Laro (U.S. Tax Court) speaks to business valuation professionals—and his articulate, well-aimed remarks at the recent NACVA/IBA 2009 Consultants’ Conference in Boston were no exception.
Impact of Government Contracts on Subject Company Risk
Companies that generate a large part of their revenues from the federal government have different characteristics than those that don’t—particularly regarding risk factors. BVU asked Dan Golish, CPA/ABV, CVA, CFF, of Skoda Minotti about engagements in thi ...
Find the Valuation Facts--Connect the Dots--Tell the Story
IRS and Tax Court judges make simple requests of appraisers, but far too often they are ignored. Common sense is lost, and the result, for the government, for taxpayers, and in other courts and disputes as well, is disaster. Users of appraisal services do ...
Top 10 Trends in the Defense and Government Services M&A Markets
During the first half of 2012, we tracked 76 transactions that closed in the defense and government services sector, a number below historical norms. However, given the expected increase in capital gains taxes at the end of the year, we might now see a sp ...
20 Ideas to Help Make Your IRS Dealings Go Smoother
In August 2014, senior leadership at the Internal Revenue Service contacted me to teach a class for the agency’s 300 staff members involved in valuation. It was to be titled “How to Work With Practitioners.” To prepare for the class, I reached out to valu ...