BVR’s Guide to Physician Practice Finance and Valuation, Fourth Edition
April 2024 Hardcover, PDF (594 pages)
Mark Dietrich
Business Valuation Resources, LLC
New issue of ASA’s BV Review added to BVResearch Pro
Among many other resources, the BVResearch Pro platform contains the full archive of the Business Valuation Review going back to 1982.
Midyear or End of Year Present Value Factors? Clues from Valuation in Discrete and Continuous Time
This article addresses whether appraisers should be using midyear or end-of-year present value factors. Although this is a topic that other authors and I have addressed, this article has some unique and novel approaches to the topic. The mathematics in this article accounts for cash flow growth within and between years rather than between years only, as others have modeled. We model in both discrete and continuous time, with discrete time in multiple time frames ...
On Improving Estimation of Co-Movements in Stochastically Correlated Inputs in Monte Carlo Simulations
This article introduces the use of the Gerber statistic when performing a Monte Carlo simulation for cases when two or more random inputs are correlated. When interdependent random variables violate certain standard assumptions required for use of the traditional historical Pearson correlation matrix, the Gerber statistic can provide a better estimate of correlation and, consequently, of the value of the subject asset. This article examines the strengths and weakness of the Gerber method relative to ...
BVR Power Panel offers insights into recent issues
BVR has an ongoing webinar series of Power Panels, consisting of veteran practitioners and thought leaders covering recent trends and issues.
New issue of Willamette’s Perspectives is released
The January 2024 issue of the quarterly digital publication Perspectives, from Willamette Management Associates, has been released.
Fair Market Value: A Complicated Standard
This article was triggered by a recent article by Jim Hitchner that maintained that it is a “myth” that fair market value assumes a financial buyer, without synergistic benefits. The author believes the answer to the question is more nuanced than the term “myth” suggests, which prompted him to revisit his thinking on the concept.
Valuing What You Cannot See: Intangible Assets
Accounting has historically done a poor job dealing with intangible assets, and, as the economy has transitioned away from a manufacturing-dominated 20th century to the technology- and services-focused economy of the 21st century, that failure has become more apparent. The resulting debate among accountants about how to bring intangibles onto the books has spilled over into valuation practice, and many appraisers and analysts are wrong, in my view, letting the accounting debate affect how they ...
Valuation Approaches and Methods—Which Do I Use, When, and Why
The inclusion or exclusion of a specific valuation approach or method can often change a business’s value by more than 10%. So, regardless of whether you are a listed user of a valuation, a CPA/appraiser providing an opinion of value, or are reviewing a valuation for reasonableness, how do you know which valuation approaches and methods should be used, when they are (not) applicable, how to weight those used/applicable, and, most importantly, why?
Hitchner’s ‘myth busters’ tackle two more issues
Jim Hitchner (Financial Valuation Advisors) and his team of fellow AICPA BV Hall of Fame alumni have taken on two more BV myths in his December issue of Hardball With Hitchner.
Need to value a stadium seat license?
Often overlooked by estate professionals or dismissed as having no value, sports stadium seat licenses have an active public market that can be used as a starting point for a valuation, according to Jackson Crispin (Willamette Management Associates) in a recent article.
The CEIV Is Gone But the MPF Will Endure—Here’s an Example
The Certified in Entity and Intangible Valuations (CEIV) credential has been discontinued, but the Mandatory Performance Framework (MPF) will continue to be used. In fact, a revision is expected to make it more streamlined. Here are its guidelines for documenting management projections that are worthy of repurposing.
New issue of Willamette’s Perspectives is released
The October 2023 issue of the quarterly digital publication Perspectives, from Willamette Management Associates, has been released.
Hitchner goes after another BV myth
Does the concept of “known or knowable” live up to its name?
Heat Maps for Valuing Venture-Backed vs. Closely Held Firms
During a recent BVR webinar, Joe Orlando (Exit Strategies Group) and Eric Sundheim (Mercovus Valuations) presented some heat map charts that illustrate the differences between the due diligence, tools, and approaches to valuing a venture-backed firm versus a closely held company.
New Book Offers Template for Assessing ESG Impact on Firm Value
Based on some case studies, a new book includes a template that summarizes steps in assessing whether ESG factors are material enough to integrate into a valuation. The book is Valuation and Sustainability—A Guide to Include Environmental, Social, and Governance Data in Business Valuation, edited by Dejan Glavas (ESSCA, School of Management, Boulogne-Billancourt, France), who also wrote several chapters.
Hitchner busts more BV myths
Does the fair market value standard assume a financial buyer, without synergistic benefits?
Firms with better ESG ratings yield higher returns, per Kroll study
Companies with better environmental, social, and governance (ESG) ratings generally outperformed those with lower ratings over the 2013-to-2021 period, according to Kroll’s new ESG and Global Investor Returns Study.
Adjusting WACC for ESG: ±100 basis points proposed
When assessing environmental, social, and governance (ESG) factors on valuation, unless there is an impact to cash flow, risk, or growth, ESG has no effect on business value.
Sustainability triggers in private credit valuation
“Sustainability-linked loans—where a loan’s economics are tied to the borrower’s achievements of certain environmental, social or governance key performance indicators—aren’t coming to the loan market. They’re already here,” writes John Czapla (VRC) in an article in Private Debt Investor.
A Difference of Opinions—Using the Right Tools for the Market Approach
This course will be a hands-on exercise in valuing a small owner-operated business using the market approach. Two appraisers will walk through the valuation of a business with $5 million to $10 million in revenue using the same fundamental financial information but different valuation tools. The results are meant to highlight the differences in value based on a selected market approach and the use of different databases. The training will use multiples derived from private ...
New book on ESG and BV
Valuation and Sustainability—A Guide to Include Environmental, Social, and Governance Data in Business Valuation is a new book edited by Dejan Glavas (ESSCA, School of Management, Boulogne-Billancourt, France), who also wrote several chapters.
Valuers Are Now Spending More Time ‘on Everything’
A panel discussion during the Global Town Hall: State of the Global Markets and Their Effect on Business Valuation event talked about having to dig more into income statement line items, perform more sensitivity analyses, request multiple forecasts, change Excel models, and more.
Fair Value, Statutory Appraisals, Crypto, ESG, PE Deals, and More at the NYSSCPA BV Conference
As usual, the annual New York State Society of CPAs’ Business Valuation and Litigation Services Conference presented some very interesting and useful information. This article provides a recap of what was discussed.
Second issue of Willamette’s Perspectives is released
The second issue of a new quarterly digital publication from Willamette Management Associates, Perspectives, has been released, and you can access it if you click here.