TABLE OF CONTENTS

Introduction
Section I. Business Valuation Approaches, Methods and Entity-Specific Issues

• The Implied Private Company Pricing Line 2.0 K₀ = (FCFF₁/P) + g
  By Bob Dohmeyer, ASA; Pete Butler, CFA, ASA; and Rod Burkert, CPA/ABV, CVA
  • Exhibit 1. Practical Example of the “Pitfalls”
  • Exhibit 2. Aggregation of the IPCPL 500 ($ in Millions–500 Private Company Transactions)
  • Exhibit 3. Completed Transactions Data Reliability Analysis 95% Confidence Interval
  • Exhibit 4. Simulation of Data Errors
  • Exhibit 5. Aggregate Revenue Growth ($Millions)
  • Exhibit 6. IPCPL Cost of Capital ($150 million sales)
  • Exhibit 7. IPCPL
• Compare Apples to Apples (I): Investigating the Differences in Transactional Databases
  By C. Fred Hall III, MBA, CBA, AVA
  • Exhibit. Summary of Adjustments to the Databases to Make Data Points Comparable
• Compare Apples to Apples (II): Recommended Adjustments to Transactional Data
  By C. Fred Hall III, MBA, CBA, AVA
  • Customer Relationships—Attrition
  • Summary of Adjustments to the Databases to Make Data Points Comparable
• Lessons on Using the Guideline Public Company Method From the Delaware Court of Chancery
  • Case Citations
• Beware of Distortions of Market Multiples During a Recession
  By Alina Niculita, MBA, CFA, ASA
  • Exhibit 1. CBRE Group Financials
  • Exhibit 2. Jones Lang LaSalle Financials
  • Exhibit 3. CBRE Enterprise Value/Revenue
  • Exhibit 4. CBRE Enterprise Value/EBITDA
  • Exhibit 5. CBRE Price/Earnings?
  • Exhibit 6. JLL Enterprise Value/Revenue
  • Exhibit 7. JLL Enterprise Value/EBITDA
  • Exhibit 8. JLL Enterprise Value/EBIT
  • Exhibit 9. Subject Company Performance 2007-2011
  • Exhibit 10. Subject Company Resulting Values From Application of Distorted Valuation Multiples
  • Exhibit 11. Subject Company Annual Percentage Changes in Resulting Values From Application of Distorted Valuation Multiples 2007-2011
  • Exhibit 12. Subject Company Percentage Changes in Resulting Values From Application of Distorted Valuation Multiples 2007-2010
• Despite Flaws, the Excess Earnings Method Is Alive and Kicking
  • Exhibit 1. Procedures for the Excess Earnings Method (Traditional)
  • Exhibit 2. Example of Excess Earnings Method (Traditional)
• Income Approach Dominates When Valuing Liabilities, Analysts From Big Four Tell ASA Conference
• Why Do Private Firms Linger on the Selling Block? 
  By Marc Vianello, CPA, ABV, CFF, and Paul Murray, CPA
  • Exhibit 1. Distribution of Marketing Periods Pratt’s Stats Database
  • Exhibit 2. Distribution of Marketing Periods BIZCOMPS Database
  • Exhibit 3. Average Marketing Period by SIC Code
  • Exhibit 5. Average Marketing Period by Asking Price
  • Exhibit 4. Average Marketing Period by Year of Sale Initiation
  • Exhibit 6. Average Marketing Period by Month
• Regulators Turn Their Sights to Private Equity Valuation
• Valuing Equity Securities in Highly Leveraged Companies Considering the Fair Value of Debt
  By Amanda Miller, Ph.D
  • Effect of a Decline in Enterprise Value on Debt, Preferred and Common Stock
• Valuation Q&A: With Future Unclear, Here’s What You Need to Know Now About FLPs
• Bogdanski Compares Recent ‘Baffling’ FLP Rulings
• When Precedent Doesn’t Help: Valuing Preferred Stock Outside the Box
  By Stuart Weiss, CPA/ABV
• Valuing Shareholder Loans in Divorce (I): Sorting Out the Problem
  By Christine Baker, CPA/ABV/CFF
  • Exhibit 1a. Single Owner, No Discount: Loan as Debt
  • Exhibit 1b. Single Owner, No Discount: Loan as Capital
  • Exhibit 2a. Noncontrolling Interest: Loan as Debt
  • Exhibit 2b. Noncontrolling Interest: Loan as Capital
• Valuing Shareholder Loans in Divorce (II): Debt or Equity?
  By Christine Baker, CPA/ABV/CFF
• Valuing Shareholder Loans in Divorce (III): What Is It Worth?
  • Exhibit 1. Effect of Expected Duration of Repayment on Yield
  • Exhibit 2. Effect of Bond Risk on Market Yield
  • Exhibit 3. Impact of Changes in Duration and Interest Rate on Present Value of Future Payment
• Pension Plans: The $20 Trillion Elephant in the (Valuation) Room
  By Dr. Susan Mangiero, CFA
  • Exhibit 1. Attributes of Pension Plans That Impact Appraisal Analysis
  • Exhibit 2. 10 Key Documents Related to Retirement Plans
• Using Oracle Crystal Ball for Monte Carlo Simulation
  By Steve Hoye, CFA, MBA
  • Exhibit 1. Simple Discounted Cash Flow Analysis
  • Exhibit 2. Monte Carlo Simulation
• Yeanoplos Advances the Framework for Key Person Discounts
• The Best Valuation Mechanism for Buy-Sell Agreements
• Anatomy of an Inflated Valuation Report
  By Stuart Weiss, CPA/ABV
• Case Studies Reveal How BV and Bankruptcy Issues Are Intertwined
• Lost Business or Lost Profits? Key Considerations for Economic Damages Cases
  • Exhibit. Tale of the Tape: Lost Profits Versus Lost Business
• Takeaways From Damodaran Seminar Put Into Practice
  • Don’t Forget to Pay for Growth

Section II. Discounts for Lack of Marketability

• The World of DLOM According to the IRS: What Should Appraisers Do?
• Volatility and the DLOM
  By Ronald M. Seaman, FASA
  • Exhibit 1. Representative Sampling of LEAPS, December 2011
  • Exhibit 2. Cost of Price Protection Over Time Media Discounts
  • Exhibit 3. Cost of Price Protection 2014 LEAPS
  • Exhibit 4. 2014 LEAPS Individual Company Movements (# of Cos.) Change From Prior Month to Current Month
• Restricted Stock Studies That Back Up the DLOM
  • Exhibit 1. Summary of Restricted Stock, Private Placement, and PIPE Studies
  • Exhibit 2. List of Restricted Stock Studies
  • Exhibit 3. Significant Factors Found in Multiple Studies
• Empirical Method for Determining DLOM
  • Exhibit 1. Restricted Stock Studies
  • Exhibit 2. Johnson Restricted Stock Study
  • Exhibit 3. Marketability Discount
  • Exhibit 4. Historical Return Requirement
  • Exhibit 5. Average Variance in Yield Between Short-Term Treasury Yields and Long-Term Bonds
  • Exhibit 6. Differential
  • Exhibit 7. Summary of Three Studies
  • Exhibit 8. Rates of Return
• Latest LEAPS Study Sheds Light on Company Size and DLOMs
  By Ronald M. Seaman, FASA
  • Exhibit 1. 2014 LEAPS (14 months to expiration) (Dollars in millions)
  • Exhibit 2. 2015 LEAPS (26 months to expiration) (Dollars in millions)
  • Exhibit 3. 2015 Added Costs of Additional 12 Months of Price Protection (1)
• LEAPS on ETFs: Your Absolutely Lowest Reasonable DLOM
  By Ronald M. Seaman, FASA
  • Exhibit 1. ETFs With LEAPS (as of Dec. 12, 2012)
  • Exhibit 2. Ishares Biotech ETF
  • Exhibit 3. Healthcare ETF

Section III. Industry Specific

• Avoid This Pitfall When Valuing a Physician Practice
• Big Valuation Opportunity in Diagnostic Imaging Centers
• Unique Factors That Affect the Valuation of Home Healthcare Service Firms
• Avoiding the Valuation of Referrals in a Healthcare Context
• The Updated BVR/AHLA Guide to Healthcare Valuation: More Valuable Than Ever
  By Greg Endicott, CPA/ABV, ASA
• BV, CV, and the Relationship Between Fair Market Value and Commercial Reasonableness
  By Mark O. Dietrich, CPA/ABV
• Valuable Insight on Reasonable Compensation in New Healthcare Industry Compensation and Valuation Guide
  By Greg B. Gates, CPA, JD
• Valuing Natural Gas Rights in Shale Formations: A Case Study 
  By Joshua Lefcowitz, CPA/ABV/CFF, CVA, CFE, ASA
  • Exhibit 1. Case Study Analysis Production Data From Analogous Wells as of Valuation Date
  • Exhibit 2. Case Study Analysis Valuation of Sub-Surface Mineral Interest Rights
  • Exhibit 3. Case Study Analysis: Valuation of Sub-Surface Mineral Interest Rights Multi-Period Excess Earnings Calculation
• Where to Dig for the Value of an Oilfield Services Company
  By Brad Edwards, CFA, CPA/ABV
• Using Oil and Gas Royalty Trusts to Value Minority Interests in Similar Holdings
  By Chris D. Treharne, ASA
  • Trust That Holds Rights to a Royalty Stream
• Winery Valuations: Six Questions to Ask When Analyzing Operations and Cash Flows
  By Christopher Meineke, CPA/ABV
• Margin Pressure and Competition Are Limiting Community Bank Values
  • Exhibit 1. Index Performance From Market Low (March 2009)
  • Exhibit 2. The Timeline of the Financial Crisis and Where We Are Today
  • Exhibit 3. Noninterest Income and Pretax, Preprovision Earnings (by Size)
  • Exhibit 4. Net Noninterest Expense (by Size)
  • Exhibit 5. Bank Stock Valuation in Relation to Market Group
• The Current Auto Dealer Acquisition Environment and Its Impact on Blue Sky
  By Timothy W. York, CPA/ABV
  • Exhibit 1. Sales Per Store
  • Exhibit 2. SAAR (in $ Millions)
  • Exhibit 3. Net Profit Before Taxes (As a Percentage of Total Sales)
• The Impact of Real Estate on the Valuation of an Auto Dealership
  By Adam Lawyer, CPA/ABV/CFF

Section IV. Intangible Assets

• Testing the Reasonableness of Royalty Rates and Solving the Null Set Problem
  By Steve N. Economou, MBA
  • Exhibit 1. Historical Royalty Licenses—Technology
  • Exhibit 2. Proprietary Technology Valuation
  • Exhibit 3. Royalty Rate Reasonability—Market Participant Test
  • Exhibit 4. Royalty Rate Reasonability—Profit Split Test
• Best Practices for Calculating Patent Damages by Today’s Tougher Standards
• Entire Market Value Rule in the Spotlight
• Latest Techniques to Sort Out the Complexities of Brand Valuation
• Look at Attrition When Valuing Customer Relationships
• Exhibit. Customer Relationships—Attrition
• Dealing With Data Limitations in Customer Survival Curves
  By Darren S. Cordier, CFA
  • Exhibit 1. Last Three Customers May Be One-Time Purchasers
  • Exhibit 2. Potential Redundant Client
  • Exhibit 3. Data Indicating an Acquisition
  • Exhibit 4. New Entry to Reflect Acquisitions
  • Exhibit 5. Different Account Numbers
  • Exhibit 6. Combine Data and Eliminate Old Account
• Valuing Customer Relationships: Does the Distributor Method Miss the Mark?
  By Dan Guderjohn, CFA, ASA, CPA/ABV, and Robert Reis, CFA
• What to Consider When Carving Out the Value of a Firm’s Website
  By Stuart Weiss, CPA/ABV

Section V. BV Profession and Practice Management

• Can the BV Profession Agree on Common Practice in These Challenging Areas?
  • Exhibit. A Current Level of Value Chart
• BV Firms Thriving Despite Slowdown From Heady Growth
  • Exhibit 1. What Was the First Year Your Current Firm Offered Business Valuation Services?
  • Exhibit 2. BVR’s Estimate of Total Business Valuation Revenues in North America
  • Exhibit 4. What Is the Fastest Growing Part of Your Practice This Year?
  • Exhibit 3. Compared With Your Previous Fiscal Year, Do You Believe Your Firm’s Business Valuation Revenues in 2013 Will:
• Top 10 Tips for Best Report Writing and Standards Compliance
• Key BV Topics From Latest APB Public Meeting
• TAF BV Roundtable: Profession at the Crossroads
• Some Key Takeaways From the ASA Advanced BV Conference
• Conference Roundup: Some Highlights From NACVA’s Annual Confab
• Recap of the IRS Valuation Summit 2013
  By David M. Rosenthal, MAI, FRICS
• Social Media: Unicorn or Horse for BV Professionals?
  By Rod P. Burkert, CPA/ABV, CVA, and Barbara Walters Price
• Six Reasons Why Private Firms Need You to Do an Annual Valuation
  By Robert M. Clinger III, CBA, CVA, LIFA

Section VI. Data

• Exhibit 1. 2013 Month by Month Cost of Capital Data
• Monthly Cost of Capital Data
  • Exhibit 2. Month by Month Cost of Capital Data Chart
  • Exhibit 3. Duff & Phelps 2013 Premiums Over Long-Term Risk-Free Rate
• BVR’s Economic Outlook for the Month (excerpt from the Economic Outlook Update)