Highlights of the 3 December issue:
  • Submit agenda items for 25 February 2020 HMRC Shares and Assets Valuation Fiscal Forum by 14 January 2020
  • Intangibles often require their own discount rates to derive WACC, Shaw and Higgs Report
  • New IVS, including extensive guidance on deriving discount rates, becomes effective 1 January 2020
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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.


Submit agenda items for 25 February 2020 HMRC Shares and Assets Valuation Fiscal Forum by 14 January 2020

Business valuers who wish to attend the forum this year should notify Helen Malone by close of business on 14 January 2020.

Intangibles often require their own discount rates to derive WACC, Shaw and Higgs report

Since there are very few comparable statistics, analysts often need to assemble their own matrix of required asset return rates for enterprises with intangibles, Steve Shaw (Financial Seminars) told attendees at last month’s ICAEW Valuation Community Annual Conference in London.

New IVS, including extensive guidance on deriving discount rates, becomes effective 1 January 2020

The latest revisions to the IVSC’s International Valuation Standards, having completed the lengthy public comment and review process, become effective 1 January 2020.

Should business valuation be more sensitive to market pricing?

BVWire—UK has been privy to a number of conversations recently with leaders from valuation professional associations around the globe.

Dates for your business valuation diary

HMRC Shares and Assets Valuation Fiscal Forum, 25 February 2020, London ...

Big Four control of UK audit market increased again last year, FRC reports

For the 17th year, the Financial Reporting Council (FRC) surveyed members of the six UK accounting associations (Association of Chartered Certified Accountants (ACCA), Institute of Chartered Accountants in Ireland (ICAI/CAI), Chartered Institute of Public Finance and Accountancy (CIPFA), Chartered Institute of Management Accountants (CIMA), Institute of Chartered Accountants in England and Wales (ICAEW), and Institute of Chartered Accountants of Scotland (ICAS)), plus the Association of International Accountants (AIA).

Further responses from BVWire—UK’s analysis of the ‘headwind’ effect of IFRS 16

BVWire—UK received a number of responses to the last issue’s coverage of a new study that suggests a possible reduction in forecasted profits as companies adapt IFRS 16.

BVR/FactSet Control Premium Study updated for 3Q

Buyers continue to pay more for control in the EU and UK than in most of the other major markets.

D&P lowers its normalized risk-free rate to 3.0%

Duff & Phelps has decreased its U.S. normalized risk-free rate from 3.5% to 3.0% effective 30 September 2019, the firm says in a statement.

The state of the business valuation profession, a la KPMG

Unresolved political uncertainties over the past quarter continue, reports KPMG in its 10th edition of the International Valuation Newsletter, published quarterly.

What’s a trillion $ between friends

Saudi Aramco floated last week, and anyone intrigued by fair market value had to take note.

Do alliances and partnerships increase value?

Most business valuation experts accept the fact that business partnerships (for IP or shared revenue opportunities) add to the value of a pool of assets.

Dates for your business valuation diary

HMRC Shares and Assets Valuation Fiscal Forum, 25 February 2020, London ...

How to succeed as a business valuation expert, from a Queen’s Counsel who’s seen the best—and the worst

One of the most engaging—and humorous—presentations from the recent ICAEW Valuation Community Annual Conference at Moorgate Place came from Augustus Ullstein QC.

Shares and Assets Valuation Fiscal Forum requests agenda topics for February meeting

The next SAV Fiscal Forum will be held on Tuesday, 25 February 2020, commencing at 1 p.m.

SPGMI/CapIQ expands natural language processing product to quantify market sentiment

S&P Global announced an expansion of Xpressfeed last week so that its London-based market intelligence division could launch Textual Data Analytics (TDA).

Next ICAEW advanced valuation techniques seminar 12 November

The next session of the advanced BV workshop provides ‘a detailed and insightful understanding of the interaction between cash flows, risk and financing.’

Do business valuers need to reduce their profit forecasts due to an IFRS 16 ‘headwind’?

IFRS 16, now in effect, has been called many things, and an excellent new analysis by The Footnotes Analyst supports a new conclusion: Lease-heavy companies may increasingly see their profits suffer as they comply, particularly if lease liabilities are inflation-linked.

UK buyers deepen ‘local’ footprint with UK target companies

BVWire—UK had the pleasure of catching up with well-known experts Konstantine Mossios and Sandra Mossios of Business Valuation Benchmarks (BVB) at the ICAEW conference in London on 23 October.

Private debt is now available for smaller UK companies ‘overlooked’ by clearing banks, BDO says

Steve Carr, corporate finance director for debt advisory of BDO London, commented in a client communication last month that BDO has ‘witnessed lots of instances where debt funds have provided solutions that clearing banks have been unable to match (albeit this comes at a price).’

Dates for your business valuation diary

ICAEW Excel Modelling—Investment Appraisal, Valuation and Business Cases, 15 November, London ...

Larger listed companies barely outperform smaller ones now, a new study argues

Published research has overstated the size premium, says ‘Firm Size and Stock Returns: A Quantitative Survey,’ a new analysis conducted by Anton Astakhov, Tomas Havranek, and Jiri Novak from the Institute of Economic Studies at Charles University in Prague.

Two new resources discuss the impact of business valuation for ‘complex’ financial instruments

In collaboration with RICS and IVSC, the iiBV have released their Valuing Financial Instruments video webinar earlier this month.

New lease accounting standards create overlooked challenges for business valuation professionals

Most of the analysis of the IASB’s IFRS 16 rule on lease accounting, which went into effect in January 2019, has been from the audit and accounting side.

Valuation trends and issues in the information/media sector

Separately identifiable intangibles are making up a bigger portion of the purchase price allocations for the big deals in the media sector, though practices vary widely, reports Grant Thornton in their new ‘What’s Been Happening in Media M&A’ white paper.

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