- Has the impact of inflation on UK business valuations officially ended?
- ESG topics continue to draw attention from business valuation standard setters
- Dates for your diary
Follow the business valuation profession in the United Kingdom and its expanding role in regulatory, fiscal, contentious, and compliance valuations with BVWire–UK. Twice a month, BVWIre–UK delivers news and perspectives from valuation thought leaders, expert practitioners, academics, the High Courts, HMRC, the standard setters, and more. We’ll also keep you current on new business valuation research, methodologies, data tools, and training opportunities from ICAEW, RICS, BVR, and others. Contact us with news items and/or suggestions.
Has the impact of inflation on UK business valuations officially ended?
The Bank of England established their target inflation rate of 2% to help businesses and consumers plan. However, Nick Forrest (UK Economics Leader for PwC) comments that inflation actually varies hugely from this target, even during non-inflationary periods, depending on which factor an analyst uses.
ESG topics continue to draw attention from business valuation standard setters
KPMG and the IVSC have both contributed to the continuing debate on how ESG rates and business valuation standards overlap.
Dates for your diary
24 February: Discount Rates in a High Inflationary Environment , ICAEW webinar, 13:00 ...
DLOM, forecasting, and valuation report attributions highlighted in the new issue of Business Valuation Update
“Valuation Expert Gets Caught Up in a Plagiarism Nightmare” (BVR Editor). A valuation expert in a divorce case was discredited over some material in his report that was copied from outside sources without attribution. With the proliferation of data and research on the web, it is easy to inadvertently use something and then forget to add the attribution.
CCPro betas and market risk premia updated for current quarter
Any business valuer using the income approach will be heartened to hear that most of the main cost of capital data providers are producing similar cost of equity estimates as 2023 begins.
How much is control worth in the UK now? The latest analysis is available
The application of control premia can be the most influential factor in many business valuations.
Business valuers consider many factors when assessing the risk of global assets
Aswath Damodaran has just completed his annual report on country-by-country risk.
After all the 2022 drama, Epsilon/Argos note only small decrease in EBITDA multiples
BVWire—UK follows a number of UK and European transaction indices to track investment valuations and deal multiples.
Dates for your diary
24 February: Discount Rates in a High Inflationary Environment, ICAEW webinar, 13:00 ...
Shot Tower Capital documents music rights value drivers
Many commentators have addressed the apparent decay of value in the music industry, but there is increasing contrarian evidence that musical IP is actually more resilient than other parts of the economy—particularly since COVID-19.
The value of technology, like everything else, is increasingly intangible
The second edition of The Valuation of Digital Intangibles by Roberto Moro Visconti includes updates that address the metaverse, cloud storage, multisided digital platforms, ESG compliance, and more.
BVResearch Pro adds another issue of the ASA’s BV Review
Among many other resources, the BVResearch Pro platform contains the full archive of the Business Valuation Review, the journal of the American Society of Appraisers (ASA) going back to 1982.
Dates for your diary
16-17 February: ICAEW Advanced Valuation Techniques, two days, virtual classroom (repeated 1-2 June 2023 ...
Another fun (and helpful) post from The Footnotes Analyst
Last week’s post addresses the complex relationship between intrinsic value and the market risk premium.
IVS and USPAP business valuation standards updates coming soon
For ASA members in the UK, comments on the final exposure draft are due 13 February.
All MergerMarket Top 10 M&A advisors experienced significant value drops in 2022
According to MergerMarket, Goldman came out on top again in total deal value, as shown in the table below.
Not enough financial data? Perhaps because there’s now too much
In Dr. Damodaran’s latest (7 January) post, he reflects on the data variables he collects and estimates every year (BVR makes use of some of Aswath’s conclusions in our Cost of Capital Pro).
Dates for your diary
16-17 February: ICAEW Advanced Valuation Techniques, two days, virtual classroom (repeated 1-2 June ...
Causation and Financial Losses with Prem Lobo of Cohen Hamilton Steger & Co (Toronto)
Damage claims caused by breach of contract, negligence or tort claims, infringement, or other causes have the same assumptions, Prem Lobo (Cohen Hamilton Steger & Co of Toronto) told Society of Shares and Business Valuers (SSBV) members in last week’s session for members of the SSBV.
Argos Index of deal multiples holds steady, at 10.0x EBITDA, despite market turmoil
This index, prepared by Epsilon Research, tracks the valuations of eurozone private, midmarket companies in which a majority stake has been acquired during the last six months.
U.S. court accepts ‘calculation’ report in divorce case
It’s rare than UK courts will accept the lower standards of a calculation of value from a financial expert, so it’s worth noting a recent U.S. decision from Arizona.
Investment banks use higher COE estimates for management buyouts
A new study, “The Cost of Equity: Evidence From Investment Banking Valuations,” by Gregory W. Eaton (Oklahoma State University), Feng Guo, Tingting Liu, and Danni Tu (Iowa State University), examined investment bank incentives in M&A.
Dates for your diary
17 January 2023: Society of Shares & Business Valuers’: Dr Aswath Damodaran Discusses Topical Valuation Issues, 17:30 BT ...
The valuation of special share classes in the UK
BVWire—UK offers this special analysis by Andrew Strickland upon the release of the HMRC’s Worked Example Groups “Valuation of Growth Shares” exposure draft.
IRN Legal reports more trust, probate, and will disputes involving business assets
New data have shown the area of contentious wills, trusts, and probate has grown to such an extent over the last four years that the number of law firms offering advice on these issues has more than doubled since 2018.