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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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Valuation to Maximize Client Engagement and Value
This transcript focuses on key issues involved in a properly executed and planned valuation and how such a process can maximize client engagement, value, and control.
Valuation Approaches and Methods—Which Do I Use, When, and Why
The inclusion or exclusion of a specific valuation approach or method can often change a business’s value by more than 10%. So, regardless of whether you are a listed user of a valuation, a CPA/appraiser providing an opinion of value, or are reviewing a valuation for reasonableness, how do you know which valuation approaches and methods should be used, when they are (not) applicable, how to weight those used/applicable, and, most importantly, why?
ESOPs for Government Contractors
Part 2: Join experts Nathan DiNatale and Mark Zyla for this example-filled expansion on ASC 805 and 820. In this second session, learn best practices for applying the theory of valuing intangibles into your practices. Get tips on the practical components of fair value such as documentation and resources to utilize. Come away with actionable steps for a better valuation flow.
Projection Issues Raised in ESOP Litigation
Revenue growth rate, profit margins, and long-term growth rate can all meaningfully impact projections. Add in inconsistency with historical results, industry/economy impacts, and lack of adjustment for critical things such as compensation or capital expenditures, and it is easy to see how litigation can arise. Chip Brown, Chelsea Mikula, and Kyle Wishing help identify common issues raised in ESOP litigation cases (either by the Department of Labor or private plaintiffs) with respect to financial projections ...
DLOM Day: An Advanced Workshop
A crisis of consensus. No regulatory or legal clarity. Over 20 possible approaches. Many appraisers deal with this ambiguity by using outdated benchmarks or a rule-of-thumb percentage. Others adopt an approach and apply it to every minority valuation regardless of the circumstance. The solution for the lack of confidence in the profession in addressing discounts for lack of marketability (or overconfidence in a single approach) is not a wholesale adaptation of a single school of ...
SFAS 157
Teleconference Presentation January 11, 2007 Moderator: Al King, Vice Chairman and a Director of Marshall & Stevens Speakers: Matt Crow, Senior Vice President of Mercer Capital Jim Travis, Group Managing Partner of Plante & Moran ...
Valuing Midstream Oil and Gas Companies
Join BVR for this special session on valuing midstream oil and gas companies. Experts Tom Ramos and Dan Visich, both of BDO Consulting, will review the unique issues facing oil and gas companies in this market and the factors that impact value in what promises to be an engaging webinar.
Heavy Construction Companies: Government Contracts, Damages, and Valuation
Big projects come with big headaches. The legal, financial, and economic risks associated with complex, long-term heavy construction projects can be significant. The architects of this program, James O’Brien and Roy Meyers, will guide you from the bidding process through finalizing the punch list of items for the project. Learn the importance of documentation to substantiate both financial and operational issues with contemporaneous records to address delays, cost overruns, damages, and the impact to the ...
Alternative Energy—Understanding Critical Business Valuation Issues
Increasing concern on global warming, technological advancements, and the longevity of current energy sources have helped to push alternative energy into the spotlight. Significant investments have been and are being made in a variety of alternative and renewable energy sources as nations commit to cutting back carbon emissions and attempt to become more self-sufficient. Once considered “fringe technology,” they are now established and viable sources of energy that need to be understood in order to ...
Valuation Considerations in High Inflationary Environments
After more than a decade of modest price increases, the U.S. Consumer Price Index increased by 9.0 percent in June 2022 which is the largest increase since January 1982, the tail end of The Great Inflation which began in 1965 and lasted for approximately 17 years. With inflation at its highest level since The Great Inflation, valuation analysts will have to consider macroeconomic factors that have not been present in the U.S. economy in over ...
Quantifying DLOMs for Minority and Controlling Interests
The discount for lack of marketability is one of the largest and most important adjustments made in the valuation of a privately held business. It is crucial to understand that an investor purchases the privately held interest at a discount to increase the rate of return on the investment. This increased rate of return offsets the additional risk the lack of marketability of the investment causes. This webinar will discuss how to use this concept ...
The Valuation of Early-Stage Enterprises: A Fair Value Update
Are you up-to-date on the guidance to fair value measurement under ASC 820 as applicable to early-stage enterprise? Make sure you are aware of the guidance in the AICPA Guide on the Valuation of Portfolio Investments of Venture Capital and Private Equity Funds and Other Investment Companies, as well as other best practices. In our upcoming webinar, Antonella Puca and Andreas Dal Santo provide an overview of the valuation methodologies that are suitable for early-stage ...
Valuing Shareholder Cash Flows
The integrated theory of business valuation provides a conceptual framework for disciplined analysis of valuation questions. Too often, valuation analysts are tempted to view individual components of a valuation assignment on a piecemeal basis. Adhering to the integrated theory helps valuation analysts develop base valuation conclusions, discounts, and premiums that are rooted in a shared perspective of the subject company and the subject ownership interest. In the first webinar of the three-part series, Chris Mercer ...
Cost of Capital in Cross-Border Valuations
Join Carla Nunes and James P. Harrington, both of Kroll (formerly Duff & Phelps), for a presentation about developing cost of capital estimates for cross-border (i.e., international) valuations. This presentation includes a comprehensive case study along with a framework for cross-border valuations and common errors to avoid. Hear a discussion of models and data sources, and see the models in action.
Masterclass in Normalizing Compensation
Three nationally known experts will explain how to determine reasonable compensation amounts. The principal author of the Job Aid, Mike Gregory, will explain the “IRS Job Aid on Reasonable Compensation” and share case studies with many tips and traps. One of the foremost national experts on reasonable compensation, Stephen Kirkland, will share insights and sources to help determine reasonable compensation for your clients. Paul Hamann will show how easy it is to use RCReports to ...
How the IRS Determines Reasonable Compensation and What You Should Do
In the most up-to-date commentary on reasonable compensation and the IRS, Mike Gregory, the original champion with the IRS on this issue, gives commentary on how to determine reasonable compensation for federal tax purposes. With fresh insight from developing his latest book, Business Valuations and the IRS, Five Books in One, Gregory will cover three IRS Job Aids including highlights of the Job Aid on Reasonable Compensation. He'll then critique each and offer valuable insights ...
Demystifying the Complex World of Discounts for Lack of Marketability (Part 2)
This is part 2 of the DLOM webinar from 2/12/2020. 25%? 35%? 45%? What’s the deal with discounts for lack of marketability? Pasquale Rafanelli dives into what DLOMs are, when they should be applied, and how to apply them. Learn about the different types of approaches and methods that valuation experts can use to quantify the DLOM, along with practical pros and cons of each approach and method. Part 2 discusses the analytical approaches and ...
Fair Value Measurement Auditing: The How To’s of MPF (A BVR Workshop)
Learn how the new Mandatory Performance Framework (“MPF”) for valuation professionals will help the auditing of fair value measurements, including the extensive documentation and analysis required by the MPF.
Can Publicly Traded Company Multiples Shed Insights on Discounts for Lack of Marketability?
This study matches private firm sales transactions with publicly traded firms to examine the issue of discounts for lack of marketability. Using sales and profitability multiples for matched firms, we calculate median discounts that consistently exceed 50% and appear to be influenced by common financial factors such as size, profitability, and likelihood of financial distress. Our findings put into question the sizes of discounts typically applied in valuation engagements.
Stock Price Discounts for Lack of Marketability: OTC Market Empirical Results 2005–2008
Discounts for lack of marketability reflect expectations of elapsed time and/or expenses in converting illiquid assets into cash and can be a key factor in pricing assets. Because discounts for lack of marketability address market phenomena, they are best assessed through empirical data from market-based transactions, such as over-the-counter (OTC) convertible debt pricing. Of the 3,270 OTC firms examined, the majority issued convertible debt at a stock conversion price discount to market, yielding a median ...
The Editor's Column
Page 103 September 2004 The EditorÕs Column Jay E. Fishman, ASA, CBA This edition of the BVR is dedicated to the valuation of S corporations. This is the first time an edition of the BVR has been dedicated to one subject. However, so much has been written on the subject, that we thought our readers would be interested in the four ar- ticles that comprise this edition. The discussion concerning valuation of S corpora ...
From the Chair
From the Chair Linda B. Trugman, ASA As the relatively new chair of the Business Valuation Committee, I feel as though I am still learning everything that the job entails. Before I go any further though, I want to take a minute to thank Bill Quackenbush, ASA, the immediate past chair of the BVC. During Bills tenure, the BVC was able to roll out the intangible assets specialty designation, and announced the formation of ...
A Quantitative Measure of Discount for Lack of Liquidity
This paper describes a quantitative method for estimating a discount for lack of liquidity.
Valuation Methods in Fairness Opinions: An Empirical Study of Cash Transactions
This study examined empirically the valuation methods that are currently being used in fairness opinions in cash acquisitions and the way in which they are applied. A search of the SEC's EDGAR database for two twelve-month periods identified 315 cash acquisitions with 352 fairness opinions containing descriptions of their methods and analyses. The findings showed the discounted cash flow, comparable company, and comparable transaction methods in predominant use, with most opinions employing more than one ...
Using Pre-IPO and Restricted Stock Data to Estimate Discounts for Lack of Marketability
Page 63 Page 63 June 2004 June 2004 Using Pre-IPO and Restricted Stock Data to Estimate Discounts for Lack of Marketability by Shannon Pratt, FASA, MCBA, CFA Introduction Business Valuation Review and Business Appraisal Practice recently published three very good articles on discounts for lack of marketability, but all contain im- portant omissions. All overlook the Valuation Advisors Lack of Marketability Discount Study,TM and none ad- dresses how to factor in the long-expected holding ...