A rundown of the existing quantitative models that have been developed that separates the active and passive appreciation of a closely held business involved in a marital dissolution case. The models seek to statistically identify market forces that reasonably cause changes in the value of assets.
A court in Arizona rejected the use of a calculation report, but an appellate court ruled it was wrong to do that and sent the case back to the lower court.
Every day, bitcoin and digital assets seem to become more mainstream for both businesses and investors. Over time, valuation and forensic professionals are bound to encounter clients with digital asset holdings, and they will need to face the unique challenges they create. Experts Mark DiMichael and Jennifer Cohen will provide valuation and forensic accounting professionals with the information they need to help their clients deal with this complex asset class.
This is a Letter to the Editor from Ashok B. Abbott, Ph.D. (West Virginia University), in response to a prior article on segregating passive from active increases in the value of an asset in the context of marital dissolution.
Letter to the Editor: Response to Dr. Abbott’s Comments on Using Jensen’s Alpha for Separating Active and Passive Appreciation
This is a Letter to the Editor from Mark Filler that responds to comments from Dr. Ashok Abbott about Mr. Filler’s prior article on the use of Jensen’s alpha. Dr. Abbott’s comments can be found elsewhere in this issue.
It’s a settled matter about whether calculation reports “can” be used, but “should” they be used is another issue. Veteran valuation expert Kevin Yeanoplos (Brueggeman and Johnson Yeanoplos PC) explores this concern in a session at the recent BVFLS conference sponsored by the Virginia Society of CPAs (VSCPA).
The one thing we know about valuations is that the future is unpredictable. How we deal with that uncertainty is critical to developing credible valuations. Join Oksana Westerbeke and Keith Konen to learn how Monte Carlo simulations can be used to deal with the uncertainty, allowing you to generate insights for your client and build credible valuations.
When valuers are expected to supply a DCF analysis (an increasingly frequent need), most start with the risk assumption of a market premium compared to government bonds.
October 2020 Hardcover
Chris Mercer, Travis Harms
John Wiley & Sons, Inc.
The revised and updated third edition of Business Valuation: An Integrated Theory explores the core concepts of the integrated theory of business valuation and adapts the theory to reflect how the market for private business actually works. In their book, the authors—two experts on the topic of business valuation—help readers translate valuation theory into everyday valuation practice.Learn more >>
An important part of understanding the impact of COVID-19 on business value is understanding the virus itself.
The pandemic has hit local governments hard financially, and they may look to ad valorem taxes on industrial and commercial properties to replenish their coffers.
On June 27, 2020, an interesting article in the New York Times tells the story of how health officials dismissed the risk of symptomless transmission of the coronavirus.
COVID-19 has substantially affected the financial and economic characteristics of privately held and publicly traded businesses.
Weary of the endless finger-pointing and back-and-forth between media “experts,” healthcare finance and valuation expert Mark Dietrich (Mark O. Dietrich CPA, PC) spent several hundred hours going directly to the source data in various scientific journals and fact-based websites to uncover the real story of COVID-19.
Healthcare valuation expert Mark Dietrich (Mark O. Dietrich CPA, PC) has done over 100 hours of research digging into the “science” of COVID-19—its origin, how it spreads, protection methods, testing, and so on.
The authors have a recurring client for whom they perform an annual valuation as of December 31. They give a best practice suggestion as to how to address the coronavirus in their valuation report. The article includes a COVID-19 timeline they developed.
Strong companies may see the current pandemic as an opportunity to fortify their balance sheets and other assets, according to the AICPA’s FAQs on Valuation Considerations When Valuing Distressed or Impaired Businesses.
May 2020 Hardcover, PDF
Business Valuation Resources, LLC
In order to use the market approach in the wake of the coronavirus, your approach will depend on the valuation date and the date the impact of COVID-19 was felt in the market.
During a recent webinar, a question came up as to whether or not valuation analysts should be separately identifying a risk rate associated with the impact of COVID-19 on a subject company.
IVSC’s Darling describes how business valuation during COVID-19 differs from the 2008 financial crisis
The IVSC, in collaboration with RICS, released a new video looking at the impact of COVID-19 on global markets, geopolitics, and the global economy on 20 April.
The International Private Equity & Venture Capital Valuation Guidelines Board has issued special guidance for applying the IPEV Valuation Guidelines when estimating fair value at 31 March 2020.
When was COVID-19 known or knowable for valuation purposes?
In a prior issue of BVWire, we presented one valuation expert’s way of dealing with the coronavirus in valuation reports before it was known or knowable.
There were several questions about M&A activity amid the coronavirus crisis during BVR’s recent town hall webinar.