Business Valuation Update Yearbook, 2023 Edition
January 2023 PDF, Softcover (426 pages)
BVR (editor)
Business Valuation Resources, LLC
It's that time of year again, BVR's “greatest hits” publication is here! The Business Valuation Update Yearbook 2023 covers the previous year’s most groundbreaking and thought-provoking advancements in valuation. It captures changes in regulations and professional standards, key takeaways from professional conferences, and tactical practice-building ideas. This critical desktop reference puts you ahead of the competition with on-the-ground reporting by the BVR editorial team including an Introduction by Andy Dzamba, BVR Executive Editor and insights from notable BV experts.
Section I. Business Valuation Specific Approaches, Methods and Entity-Specific issues: How to take inflation into account in company valuations is the subject of several articles. Also, new research and ideas should prompt valuers to take a fresh look at some existing methodologies and approaches
Section II. Cost Of Capital: Inputs to the cost of capital were the subject of some spirited debate and new research, including the size premium and company-specific risk.
Section III. Business Valuation Conference Coverage: Key takeaways from eight important conferences reveal many practical tips and pieces of advice that valuation experts can put to work right away.
Section IV. Legal, Regulatory, Standards: 2022 was a busy year on the legal and regulatory front as well as with planned updates to some valuation standards and guidance.
Section V. Business Valuation Profession and Practice Management: This section includes some important articles on key issues such as the state of the profession, staffing, management, and attracting more valuation work. Also, a landmark study of the views of young practitioners was covered.
Section VI. Reviews of Data Sources and New Books: 2022 was a big year in this area—new editions of two seminal business valuation texts were released and are reviewed. Also, some insights into existing databases and resources.
Section VII. U.S. and Global BVU News Roundup: A month-by-month compilation of news briefs and important announcements related to the business valuation profession not covered in the main articles.
Section VIII. Data: A compendium of the monthly cost of capital data originally presented in the Business Valuation Update newsletter.
Introduction
Section I. Business Valuation Approaches, Methods, and Entity-Specific Issues
Avoid This Mistake When Using an Exit Multiple in the Terminal Year
Typical Way to Estimate Long-Term Growth Is ‘Flat Wrong,’ Says Grabowski
New Version of the NICE DLOM Method Now Freely Available
Valuation Lessons Learned From the Gaming Industry
Reader Question: How Much Is a Discount for Lack of Voting Rights?
Veteran Valuers Warn of This Fallout From COVID-19
Unique Pitfalls in Valuing a Diagnostic Imaging Center
A ‘Radical’ Market Data Approach to Startup Valuations
Reconciling the Results of Various Valuation Methodologies
A Lesson in Healthcare Supply and Demand—and Market Power (Part 1)
By Mark O. Dietrich, CPA/ABV
A Lesson in Healthcare Supply and Demand—and Market Power (Part 2)
By Mark O. Dietrich, CPA/ABV
How Direct Loan Market Participants Are Handling the Handoff From LIBOR to SOFR
By John Czapla, Valuation Research Corp. (New York, NY)
New Toolkit for Passive Appreciation Takes Shape
Coronavirus Updates for 24 U.S. Industries
An Actual Brand Valuation Report a Court Rejected as ‘Speculative’
Misusing the Market Prices of High-Vote Shares When Estimating a Discount for Lack of Voting Rights
By Gilbert E. Matthews, Sutter Securities, Inc. (San Francisco, Calif., USA)
Why Analysts Should Consider the Asset Approach for Going Concerns
Damodaran on How Inflation Plays Out in Company Valuations
The 2022 Cannabis Reset: A Redux of 2019?
By Ron Seigneur and Ryan Cram, Seigneur Gustafson LLP (Lakewood, Colorado)
Key Lesson to Be Learned From Valuing a Strip Club
Valuation Considerations in High Inflationary Environments
By William Harris, Trugman Valuation (Parkland, Fla., USA)
Accounting for Inflation in the Income Statement Forecast
By William Harris, Trugman Valuation (Parkland, Fla., USA)
Key Industry Updates for Various Types of Stores and Retailers
The Two Most Prevalent Methods for Solving the Goodwill Conundrum
Pratt’s Document Request Checklist Stands the Test of Time
Section II. Cost of Capital
Appraiser Uses Direct Way to Estimate Private-Company Cost of Equity
Trugman’s Approach to Assessing Company-Specific Risk
Hitchner v. Damodaran on Inputs to the Cost of Capital
New Pepperdine Report Creates Buzz at the NACVA Conference
Ang Offers SSBV Members More Evidence of the Lack of a Size Effect
Estimating the Extra Risk of Customer Concentration
Section III. Business Valuation Conference Coverage
Additional Takeaways From the 2021 ASA International Conference
Highlights From the 2022 NYSSCPA BVLS Conference
Conference Recap: ESOP Valuations at a Crossroads
Recap of the ASA New York Fair Value Conference
Recap of NACVA’s Summer 2022 ‘Super Conference’
Recap of the AAML/BVR National Divorce Conference
Hot Topics at the 2022 VSCPA Forensic and Valuation Conference
Recap of the New Jersey CPA Society FVS Conference
Section IV. Legal, Regulatory, Standards
BVLaw Review: The Top Valuation Cases of 2021
Questions a Trier of Fact Will Ask About Your Valuation
Proposed Rule 702 Change Targets Unqualified Experts
Cellular Telephone: An Interesting Decision for Valuation Practitioners
By Gilbert E. Matthews, Sutter Securities, Inc. (San Francisco, Calif., USA)
Delaware Chancery Case on Shareholder Dissent Likely to Raise Eyebrows
By R. James Alerding, Alerding Consulting LLC (Noblesville, Indiana, USA)
How Judges Compare Competing DCF Analyses
Appraisers Have the Highest Exclusion Rate Under Daubert, Per PwC Study
Appraisers Continue to Be Excluded Most Under Daubert, Per PwC Study
Probing Questions Valuers Will Face About Their Guideline Transaction Analysis
Roundup of Recent and Planned Updates to Valuation Standards and Guidance
Stark Law FMV: Precluded Reliance on Market Data From Business-Related Parties
By Timothy Smith, TS Healthcare Consulting (Dallas/Ft. Worth, Texas)
Section V. Business Valuation Profession and Practice Management
BV Year in Review 2021: End of an Era
Colleagues Pay Tribute to Shannon Pratt
A Closer Look at the ‘Perfect Storm’ in BVFLS Staffing
By R. James Alerding, CPA/ABV, Alerding Consulting LLC (Noblesville, Indiana, USA)
Final Version of Global Business Valuation Glossary Released
New Case Points Up Opportunity for Buy-Sell Valuations
Business Valuation Needs to Be a Recognized Career Path
By David Foster, CEO, Business Valuation Resources (Portland, Ore., USA)
Two BV Firms Collaborate to Serve Clients Better—and Boost Business
Comments on an Article on Attracting More Practitioners to BV
Breaking Into Bankruptcy Valuations With Little—or No—Experience
Using the Valuation Report as a Selling Tool
ASA Ramps Up Efforts to Attract and Retain Young BV Pros
Young BV Practitioners Speak Out About the Profession
Mercer Examines the State of the BV Profession
Good News in New BVR Survey of Young ASA BV Experts
New Case Points Up Practice Opportunity in Reasonable Compensation
Section VI. Reviews of Data Sources and New Books
Vertical IQ Enhances Its Industry Research Platform
Understanding Business Valuation, 6th Edition
By R. James Alerding, Alerding Consulting LLC (Noblesville, Indiana, USA)
Valuing a Business—The Analysis and Appraisal of Closely Held Companies, 6th Edition
By Harold G. Martin Jr., Keiter (Richmond, Va., USA)
A Bird’s-Eye View of Major Intangible Asset Benchmarks
By Christof Binder, Ph.D., MBA, Trademark Comparables AG (Switzerland)
DealStats Yields Insights on How Crises Impact Exit Values for Small Firms
Latest Inside Look at the ktMINE Royalty Rate Database
Using Rule of Thumb Benchmark Data to Verify Financials
BVR Responds to Hitchner Article on DealStats
[by Adam Manson, BVR director of valuation data](published June 2022)
Section VII. U.S. and Global BVU News and Trends Roundup
January 2022 U.S. and Global News and Trends
February 2022 U.S. and Global News and Trends
March 2022 U.S. and Global News and Trends
April 2022 U.S. and Global News and Trends
May 2022 U.S. and Global News and Trends
June 2022 U.S. and Global News and Trends
July 2022 U.S. and Global News and Trends
August 2022 U.S. and Global News and Trends
September 2022 U.S. and Global News and Trends
October 2022 U.S. and Global News and Trends
November 2022 U.S. and Global News and Trends
December 2022 U.S. and Global News and Trends
Section VIII. Data
Monthly Cost of Capital Data
