Research Update: Recap of Recent Research Papers
Some notable research papers that should be of interest to valuation experts. This month’s topics include ESG, robotics, startups choosing not to go public, family firms, and more.
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.
BVR Power Panel discusses crypto challenges
Despite the growing adoption of cryptocurrencies, members of BVR’s Power Panel acknowledged a learning curve in incorporating these assets into broader valuation practices.
AI in BV in the latest issue of Willamette’s Perspectives
The January 2025 issue of the quarterly digital publication Perspectives, from Willamette Management Associates, is available, and you can access it if you click here.
Today! BVR’s Power Panel tackles hot topics
A quartet of veteran practitioners and thought leaders will cover recent trends and issues today, February 12, in the latest in the BVR Power Panel series.
New survey reveals challenges of reflecting ESG in valuation
The most frequently cited challenge to the integration of environmental, social, and governance (ESG) considerations in valuations is the lack of standardized metrics for measuring ESG impacts.
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.
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.
Maligned and Abused Excess Earnings Method Endures—But Why?
During a recent BVR Power Panel webinar on divorce valuations, the panel wondered why, given all the drawbacks of the excess earnings method, it continues to be used, especially for small businesses and professional practices. Also, insights into how judges evaluate an analyst’s use of this method.
RESEARCH UPDATE. Featured Paper: “Six Principles for the Effective Use of ChatGPT and Other Large Language Models in Accounting”
A monthly roundup of research papers of interest to valuation experts. The featured paper is from 2023, but it is still very relevant and provides some cautions for financial experts. Despite these caveats, the authors, during a recent conference presentation, urged the audience—especially those at firms with limited resources—to get their hands dirty and “experiment with LLMs to improve the efficiency of common language generation tasks.” Other papers listed in this update discuss fraudulent ESG reporting, how AI affects the cost of equity in China, and how sexual abuse scandals have impacted corporate returns.
Should you change your models now for potential tax law changes?
No, it is not advisable to change your valuation and financial models at this time based solely on the potential for tax law changes.
Understanding DealStats: What You Need to Know
Identifying comparable companies in a new platform can be daunting. Understanding how the data provider captures and reports information can compound this. This presentation provides attendees with the information they need to know about BVR’s DealStats platform, a valuable resource in an appraiser’s market approach. The presentation will include a background on the resource, including the data sources DealStats uses, how the data are reviewed and vetted, and what benefits the database can provide. Attendees ...
Need to Explain the Valuation of a Multilayered Entity? Try This Chart
At the recent two-day Forensic and Valuation Conference held by the Virginia Society of CPAs (VSCPA), there was a good presentation on related-party companies in divorce with valuation expert Karolina Calhoun (Mercer Capital) and attorney Kevin Segler (KoonsFuller), which included a very effective visual.
RESEARCH UPDATE. Featured Paper: ‘Key Forensic Accounting Takeaways: People Ex Rel. James v. Donald J. Trump et al.’
The featured paper in this monthly roundup of research papers of interest to valuation experts focuses on the confusion over the definition of “estimated current value” for personal financial statements, which was a hotly debated issue at the New York trial of Donald Trump. Other papers are listed that discuss ESG, CEO/CFO gender, thinly traded assets, and using Monte Carlo to estimate a synthetic beta.
Excel: Tips and Tricks for BV Professionals—A Hands-On Workshop
You will learn techniques, formulas, and approaches all designed to improve overall efficiency when building and working with valuation models. Techniques and tips will be based on the presenter’s more than 25 years of experience with building models and working with Excel for valuations both domestically and internationally.
Multiple Lines of Business—Let Me Count the Ways
Recently, I read an article from McKinsey titled “How CEOs Are Turning Corporate Venture Building Into Outsize Growth." While the article and survey are about what the title indicates, it reminded me of a broader valuation issue: What do I do when a business I am valuing has multiple lines of business?
Harvey Weinstein scandal has impacted corporate returns
The Harvey Weinstein sexual abuse scandal energized the #MeToo movement and triggered changes in corporate cultures, which in turn has impacted capital markets, according to a new paper.
Introduction to Power Automate: Automate Your Workflows and Increase Productivity (A BVR and CBV Collaboration)
BVR and CBV Institute are pleased to bring you an “Introduction to Power Automate: Automate Your Workflows and Increase Productivity.” In this webinar, speaker Tomas Milo will review key features and examples to show how Microsoft’s Power Automate (a comprehensive, end-to-end cloud automation platform powered by low code and AI) can be used to automate repetitive work, reduce errors, and increase efficiency. By attending, you'll understand how automation frees up time for more important, high-value ...
RESEARCH UPDATE: Monthly Recap of Research Papers October 2024
The featured paper is from 2021 but escaped our radar. The authors are Lauren A. Cooper (West Virgina University), James A. DiGabriele (Montclair State University), Richard A. Riley, and Trevor L. Sorensen (West Virgina University). Other papers examine an algorithm for PE IRR, assessing macroeconomic risk, global economic recovery from COVID-19, and the payment timing of deferred income taxes.
October 2024 issue of Willamette’s Perspectives is released
The October 2024 issue of the quarterly digital publication Perspectives, from Willamette Management Associates, has been released, and you can access it if you click here.
BV Myth Busters tackle exit multiple vs. Gordon growth
Is an exit multiple preferable to the Gordon growth model (GGM) for calculating the terminal-year value in a DCF model?
New paper examines ‘estimated current value’ in Trump case
The FASB needs to clear up the definition of how assets are valued in personal financial statements, concludes a new paper.
Don’t Be Afraid to Use a High Discount Rate in Your DCF for Early-Stage Firms
A case study of a recent engagement is another example of how challenging it can be to determine the enterprise value of an early-stage company because of the significant uncertainties that surround these firms. The article includes sources of data used for developing a discount rate.
RESEARCH UPDATE: Monthly Recap of Research Papers September 2024
The featured paper is “Pricing Innovation: The Anchoring Effect in Patent Valuation” by P.E.N.G.F.E.I. Wang (BI Norwegian Business School). Other papers of interest to valuation experts cover topics including valuing startups, how marijuana legalization impacts cost of equity, and earnings growth rates.
IPCPL resurfaces during NACVA AVW broadcast
“It’s one of the most insightful things I’ve seen in private company business valuation ever,” said Malcolm McLelland, Ph.D., during a recent NACVA Around the Valuation World webcast.