Business Valuation Update attended the recent RICS Business Valuation Symposium in New York City, during which speakers gave an overview of developments in fair value for financial reporting. One session presented a timeline that strikingly illustrates the remarkable advances the profession has made in this area of practice.
This is an article in a series of valuable lessons to be learned based on the experiences of seasoned valuation experts. While you may be able to find some of this advice in books, only real-life experiences can highlight the nuances that can only be found in the minds of the experts who have lived through many engagements.
The business valuation profession suffers from a muddling of concepts and terms. It is time to think about a recalibration of valuation terms that grows out of the foundation that has been laid by our original business valuation pioneers.
Comments by Andrew Strickland, a consultant with Scrutton Bland in the UK, on transactions involving fractional interests in closely held companies. He also offers a summary of discounts from a sample of relatively recent cases.
Business valuation news from a global perspective.
Business Valuation Update attended the recent NYSSCPA business valuation conference in New York City where several attendees expressed concerns about entering sensitive client data into online tools for estimating the cost of capital. The providers of the Duff & Phelps Cost of Capital Navigator and BVR’s Cost of Capital Professional respond to these concerns.
monthly roundup of key developments of interest to business valuation experts.
The Kress case has received a great deal of attention on a number of valuation fronts, most notably that both the taxpayer and the government tax affected the earnings of the subject S corp. This letter to the editor is a response to comments on the case made by an IRS analyst.
A recent court decision has provided practical guidance for experts to mitigate concerns over providing speculative, unsupported lost profit estimations for a new business. The author also provides an example of a recent engagement.
Two sources of industry betas are now included in BVR’s Cost of Capital Professional (CCPro) to help in estimating the industry risk premium (IRP) component of the buildup method for developing the cost of capital for a private company. For appraisers that choose to use an IRP, care must be taken and there are some important factors to consider.
The appraisal of promissory notes is an area of business valuation that has not received much attention from academic journals. Appraisers are taught to use corporate bonds as comparable investments, but they are much too large and marketable to be used as a proxy for most privately held promissory notes. This article introduces the concept of using Business Development Company (BDC) rates to value small promissory notes.
A session at the AAML/BVR National Divorce Conference did a good job explaining how attorneys and financial experts must think about ethical issues that may arise while working on a divorce (or any other) engagement so as to ensure they abide by their profession’s rules of ethics and work together in an effective and efficient way.
Inputs into the cost of capital, cryptocurrency, and financial projections are just a few of the important topics discussed at the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) in New York City. BVU attends this event every year, and here are a few takeaways from the sessions.
Business valuation news from a global perspective.
The Tax Cuts and Jobs Act, expert witnessing, rigged valuations, and other interesting topics were presented at the National Divorce Conference (in Las Vegas May 8-10) co-sponsored by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR). Here’s a recap of some important takeaways.
A monthly roundup of key developments of interest to business valuation experts.
The issue of annual impairment testing versus amortization of goodwill is being revisited with the Financial Accounting Standards Board (FASB) issuance of an Invitation to Comment (ITC) on how to account for certain identifiable intangible assets acquired in a business combination.
One of the techniques that has contributed to the success of Mercer Capital since it was established in 1982 is that founder Chris Mercer uses a “Rule of Three” as part of the firm’s marketing strategy.
For business appraisers who are valuing firms in the cannabis industry, The State of Legal Marijuana Markets, 7th edition, is now available.
The P/E multiples of a majority of industries have improved in the first quarter of 2019, according to the Duff & Phelps “Industry Multiples India Report – Seventh Edition.”
Here’s what you’ll see.
Adam Rabinowitz, CPA, CFF, CVA, CFE, has been promoted to forensic, advisory, and valuation services principal at Miami-based Kaufman Rossin.
Purchase or Sale of the Closely Held Business (July 17), with R. James Alerding (Alerding Consulting LLC).
This August or September, you can expect to see a final version of the AICPA’s new Accounting and Valuation Guide Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies.
If you use one of the new online tools that help you estimate the cost of capital, you may be worried about data security.