Global BV News: Registration open for CBV Connect June 20-21
CBV Connect 2024, hosted by the CBV Institute, Canada’s valuation professional organization (VPO) and standard-setter, will be held at The Bonaventure in Montreal.
BV movers . . .
Derek Kearns, CPA, a partner at Philadelphia-based Centri Business Consulting LLC, has been named the firm’s SEC Financial Reporting Practice Leader.
CPE events
Harvesting Knowledge: The Valuation of Wineries (A BVR Workshop), March 21, 10:00 a.m.-1:40 p.m. PT/1:00 p.m.-4:40 p.m. ET. Featuring: Joseph Orlando (Exit Strategies Group) and Bradford MacLane (MacLane & Co.). CPE credits: 4.0.
What’s in the April 2024 issue of Business Valuation Update
Here’s what you’ll see.
From the Chair
It amazes me how quickly time seems to pass these days. Occasionally, I try to pause to simply appreciate the moment, especially given the pace of our work and our lives in this virtual world that we have evolved to be living in.
Letter to the Editor from the Immediate Past Chair
As my executive terms come to an end with the Business Valuation Resource Panel (BVRP) of the Appraisal Foundation (TAF), I would like to introduce BVR readers to this little-known powerhouse of a committee and the opportunities it provides for them to serve our valuation community in some significant ways.
Letter to the Editor
I am writing because I see several things that concern me about our business valuation (BV) profession. I offer some thought-provoking remarks that hopefully induce a reaction from the journal’s readership.
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 ...
From the Editor
It is that time of year to give thanks, and I would like to take this chance to thank all of those who make the Business Valuation Review possible.
What to do about the dwindling real estate DLOC database
During the recent BVR Power Panel webinar, a question came in from the audience: What are your thoughts about using the 2022 Partnership Profiles data until the company produces a more up-to-date report?
Interested in more support for your DLOM?
There have been some rumblings in the business valuation profession about the validity of the traditional ways to estimate a discount for lack of marketability (DLOM).
How AI can impact healthcare valuations
It’s very unlikely that AI will replace physicians (that’s good news!), points out an interesting article, “Generative AI in Healthcare: Valuation Considerations,” by Todd Zigrang and Jessica Bailey-Wheaton, who are both with Health Capital Consultants.
ASA CEO search continues
Since Johnnie White, former CEO of the American Society of Appraisers, left the organization last month, the search for a new CEO has yielded over 75 applications, according to Garrett Schwartz, ASA international president, in his monthly message.
Today is the deadline for TAF’s demographic survey
Please take a three-to-four-minute survey from The Appraisal Foundation (TAF) designed to gather demographic data about the appraisal profession and help shape the group’s current and future diversity-related activities.
Comments due March 31 on fair value exposure draft
The Business Valuation Resource Panel (BVRP) of The Appraisal Foundation (TAF) has issued an exposure draft of Valuation Brief #3: Professional Interactions Unique to Fair Value for Financial Reporting.
Global BV News: ValuAsia Connect launches inaugural webinar (on ESG)
A new webinar series on valuations in Asia will have its first program on March 21 at 2:00 p.m. (Singapore time) on the topic of environment, social, and governance (ESG) factors and the regulatory environment that should be considered when valuing a business, asset, or liability.
BV movers . . .
Two promotions to managing director at Prairie Capital Advisors Inc., a corporate advisory and investment banking firm.
CPE events
Recent Trends in the Valuation of Early-Stage Companies, March 14, 10:00 a.m.-11:40 a.m. PT/1:00 p.m.-2:40 p.m. ET. Featuring: Antonella Puca (BlueVal Group) and Douglas Summa (IVSC). CPE credits: 2.0.
Basic assumption drives valuers way apart
In an Illinois divorce case, different fundamental assumptions about the husband’s picture frame business yielded greatly disparate values from the two experts.
Update on AI
The issues regarding the shake up at OpenAI settled down, seemingly, as quickly as they fired up. The parent not-for-profit governing organization replaced most or all of its board of directors, but it remains to be seen what structural changes will ultimately result from shake up.
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.
Exposure draft now available on fair value
The Business Valuation Resource Panel (BVRP) of The Appraisal Foundation (TAF) has issued an exposure draft of Valuation Brief #3: Professional Interactions Unique to Fair Value for Financial Reporting.
Kroll-recommended ERP remains at 5.5%—for now
The latest cost of capital infographic from Kroll has the firm’s recommended U.S. equity risk premium reaffirmed at 5.5% when developing USD-denominated discount rates.
‘Disclose me,’ AI tells appraisers
“Appraisers should be encouraged to clearly state whether they authored a report or relied on AI models for content generation.”