USPAP/IVS Front and Center in Proposed Regs for Tax Valuations
The IRS has issued proposed regulations that would make changes to Circular 230 that would strengthen the agency’s ability to penalize or disqualify appraisers who do tax-related valuations. Two sets of valuation standards, USPAP and IVS, figure prominently in the proposed regs as benchmarks by which the IRS will scrutinize valuations. Public comments are due February 24, and a public hearing will be held March 6.
Grabowski on Using Academic Research to Back Up CSRP Estimates
Roger Grabowski, managing director (ret.) at Kroll, discusses the company-specific risk premium (CSRP) and how academic research can strengthen estimates and withstand challenges that the numbers are just picked out of the air.
AI Usage in Valuation: A View From the Bench
Judges are increasingly concerned about artificial intelligence (AI) and its implications for the legal system and its use by testifying experts. Programs are being developed internally to educate the courts and lawyers on AI’s role in legal processes, and the valuation profession can play a key role in this effort, according to judges who spoke during a session at a recent conference.
An Inside Look at Two Acquisitions in the BV Profession—and More
The debut program in BVR’s “Fireside Chat” series, hosted by BVR chairman David Foster, explored two recent acquisitions in the business valuation space: the acquisition of Marcum by CBIZ and the acquisition of Financial Research Associates by Stout. But the conversation expanded beyond the mergers to discuss some important issues in the valuation profession.
How a Small BV Practice Scales Up Amid a Labor Crunch
Insights from a small firm that uses a combination of full-time local employees, remote contractors, and international “in-house” talent to meet clients’ growing needs. It is a challenge to coordinate this widely dispersed team, but the advantages more than compensate.
VRC Gives an Update on Deals and Fund Valuations
A panel of leaders from Valuation Research Corp. (VRC) held a media roundtable in early December during which they discussed developments in their two primary practice segments: portfolio valuations and transactional services.
Research Update: Recap of Research Papers on Assessing Company Risk
A listing of research papers and sources cited by Roger Grabowski, managing director (ret.) at Kroll, that are helpful in substantiating otherwise subjective estimates in business valuations, especially in the estimation of company-specific risk.
Book Review: What’s New in the 5th Edition of Financial Valuation Applications and Models?
A review of Jim Hitchner’s new edition that is over 2,100 pages and has undergone substantive updates to existing material as well as new chapters on topics not previously discussed.
BV News and Trends February 2025
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends February 2025
Business valuation news from a global perspective.
Rethinking the Site Visit in the Post-COVID-19 Era
During the pandemic, the physical on-site visit to a subject company vanished. Valuers used other means, including virtual tools, to inspect the business and complete their valuations. Now, in the post-COVID-19 era, will things return to normal, or will technology eliminate physical site visits? Have they lost their importance? Paul Hood and Tim Lee share their thoughts.
Update on Incorporating ESG Factors Into a Business Valuation
There is a great deal going on with environmental, social, and governance (ESG) matters, including new regulatory and disclosure requirements, research studies, and guidance on integrating ESG factors into business valuations. This was all discussed during a recent BVR webinar with Carla Nunes (Kroll) and Nene Gianfala (Chaffe & Associates), who gave a comprehensive picture of the current ESG landscape and the impacts on valuation.
Common Errors Addressed in Final AICPA Business Combinations Guide
At the ASA conference, Adam Smith of PwC, who was on the task force for the guide, discussed some common errors in practice the guide addresses, particularly with respect to the returns on intangible assets and inventory valuation.
RESEARCH UPDATE - Featured Paper: “Expert Guide to Navigating Forensic Accounting and Valuation Professional Standards”
A monthly roundup of research papers of interest to valuation experts. The featured paper discusses the standards put forth by the AICPA, ASA, NACVA, and the CFA Institute, including USPAP. While they may be “complex and confusing,” they do not conflict, but there are differences. It’s up to the practitioner to determine the appropriate standards to follow based on the nature of the engagement. Other papers covered include financial forecasting, bias in ESG ratings, and whether the market puts a value on corporate culture.
BV News and Trends January 2025
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends January 2025
Business valuation news from a global perspective.
Business Valuation Year in Review 2024: The Rise of AI
It was an exciting year for the business valuation profession in 2024. Last year, our annual review highlighted the challenges in recruiting and keeping staff, which remains an issue for the profession. This year, we spotlight technology, and we also make some overall observations based on all the conferences and webinars we attended during the year and from the many opportunities we’ve had to speak directly with many of you.
BVLaw Review: The Top Valuation Cases of 2024
The BVLaw platform added over 60 cases during 2023, bringing the total to almost 4,400 cases in the database—plus accompanying case analyses that hit the valuation highlights. This article is a rundown of some of the more important cases for 2024.
Tales From the Trenches Episode No. 4—Your Honor, There Is No Proof
Most of you are likely aware of the idiom “left holding the bag.” My client, in a bankruptcy case in Arizona, was the one left holding the bag. A group of about six men had been conducting a Ponzi scheme for several years before it was finally uncovered.
BVR offers free resources in wake of disasters
For business valuation experts grappling with business interruption (BI) and damages matters in the wake of this year’s natural disasters, BVR is offering some free resources.
Damodaran posts his first data update for 2025
At the beginning of each year, Professor Aswath Damodaran (New York University Stern School of Business) generously posts a great amount of data on his website that include risk-free rates, equity risk premiums (ERPs), corporate default spreads, corporate tax rates, country risk premiums, and other data—all of which are free.
Poll reveals methods and data sources for ERP
The Kroll Cost of Capital Navigator continues to be widely used and accepted for estimating cost of equity (COE), per the results of a poll during BVR’s recent Cost of Capital Virtual Conference.
BVResearch Pro adds new guide on valuing dental practices
BVR’s BVResearch Pro platform has added a 150-page guide, What It’s Worth: Valuing Dental Practices.