Will HMRC enforce its new tools in post-COVID-19 insolvencies?
Since 1 December 2020, HMRC has regained its status as a preferential creditor. Valuation experts working with distressed businesses and insolvencies will need to assess HMRC’s reinstated role carefully, since no one is entirely clear yet on how Treasury intend to respond once winding-up restrictions end or whether delayed tax payment agreements are enforced.
What It's Worth: Valuing Full-Service Restaurants
October 2020 PDF
BVR (editor)
Business Valuation Resources, LLC
Valuing restaurants has always been a dynamic and challenging process, now more than ever before given the impact of COVID-19 on eateries. To meet this challenge, a back-to-basics approach steeped in fundamentals is required in order to build a foundation on which to develop a valuation in today’s volatile environment. This new and timely industry report from the editorial experts at BVR takes a deep dive into the unique considerations for restaurant valuation
Learn more >>How Did the Pandemic Impact EBITDA Multiples in 2020? Explore a 12-Month Snapshot in the DealStats Value Index
With the COVID-19 pandemic putting a stranglehold on the U.S. economy for most of 2020 and causing an unprecedented economic impact on small businesses, DealStats Value Index (DVI) captured the 12-month snapshot on how earnings before interest, taxes, depreciation, and amortization (EBITDA) multiples have trended.
Adjusting Risk Free Rates Is Not the Best Answer
Are the traditional discounts developed by appraisers too low in this era of the Great Recession? Are they producing values that are too high as a result? Many appraisers have declared that the current low 20-year bond rates are an aberration and in nee ...
Valuation Issues in the Coming Wave of Goodwill and Asset Impairments
Widespread stock price declines and recessionary conditions will significantly affect corporate valuation and financial reporting of goodwill and long-term assets. The S&P 500 index, which represents a broad cross-section of the economy, declined by about ...
Goodwill Impairment in a Troubled Economy
Valuation experts Ed Morris, Jim Alerding, and Brian Steen will cover the hands-on, must-know issues relating to recognizing, testing, and accounting for goodwill impairment. For all valuation practitioners, this presentation is an imperative preparation for the coming wave of impairment-related valuation issues. Indeed, Ed Morris notes "we've seen some increase in goodwill impairment for the 2008 financial statements, but we think that's going to continue—and if nothing else accelerate—in 2009, and get into some of ...
New ‘Subchapter V’ bankruptcies gain steam
Valuations have always been a crucial element in bankruptcies.
‘Plenty of room' for new experts in bankruptcy valuations, says Reilly
There is “plenty of room in the bankruptcy discipline for new practitioners,” says Robert Reilly (Willamette Management Associates), who co-presented a session at the recent AICPA FVS Conference with Josh Shilts (Shilts CPA).
14 Ways to Detect Misrepresentations in Business Interruption Claims
Business interruption insurance claims are on the rise, and analysts need to be on the lookout for misrepresentations. Michael Haugen (JS Held) conducted a session on this at the recent AICPA FVS Conference, and it’s an area where valuation experts would do well to bolster their knowledge and skills in financial forensics. Haugen gives some tips on how to “sniff out” misrepresentations in these claims.
Be on the lookout for BI misrepresentations
Business interruption (BI) insurance claims are on the rise, and there are “great opportunities” for analysts on both the business owner side as well as the insurance company side, according to Michael Haugen (JS Held), in an article in the April issue of Business Valuation Update.
Major changes in energy sector valuations
In the wake of the pandemic, there is a “paradigm shift” in valuations in the energy sector, according to one speaker at the Energy Valuation Conference, hosted by the Houston Chapter of the American Society of Appraisers on May 12.
Global BVU News and Trends November 2020
Business valuation news from a global perspective.
Global BVU News and Trends July 2020
Business valuation news from a global perspective.
Valuation Challenges and Best Practices in Joint Ventures and Strategic Affiliations
Today, corporate investments into joint ventures and other non-controlled entities now exceed $5 trillion per year, according to Ankura/Water Street Partners' analysis of U.S. Government data. Companies utilize joint ventures for a variety of reasons, including to access capabilities, share risk, pool capital, secure added scale and scope, and satisfy regulatory requirements of local ownership. Join Jerry Chang, Molly Faber, and Tim Lubbe of Ankura to learn more about the increasing prevalence of joint ventures ...
The Balance Sheet and its Correlation to Company Specific Risk
The pandemic is teaching us that businesses, small and large, and their balance sheets are important not just from handling a pandemic, but also from sustaining operations. Understanding assets, and which matter, will help analysts determine the specific company risks. Expert Josh Shilts discusses which categories are important in understanding risk and what ratios and other analyses can be used to measure risk. Identifying and linking balance sheet financials to company-specific risk is a critical ...
Global BVU News and Trends June 2020
Business valuation news from a global perspective.
The 2023 Cannabis Reset: A Redux of 2019?
As we roll through 2023, getting well past what many are calling the post-COVID-19 pandemic era, the cannabis industry appears to be hitting a major reset button. Inflationary trends continue near a 40-year high with no sign of a quick retreat, legislative reforms for the industry have stalled, interest rates and the cost of capital continue to be significant challenges in the sector, and labor and supply-chain disruptions also continue in some jurisdictions.
Mission Critical in Divorce: 10 Key Insights in 50 Minutes-a Free AAML/BVR Virtual Divorce Conference Preview
Brought to you by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR), this free preview for the Virtual Divorce Conference brings together attorneys, valuation professionals, and industry experts in a one action-packed, 60-minute session. Get short compelling lessons that you need to know now. This year’s conference focuses on the topics most impacted by divorce, and anyone serving business owners involved in matrimonial dissolution can get access to this premium preview ...
Shift more emphasis to numerator, panel says
During this time of crisis, the numerator of the valuation equation needs much more attention than before, said a panel during yesterday’s free BVR webinar.
Global BV News: Look globally during pandemic, panel advises
We’re in more of a global economy today than during previous crises, but the coronavirus crisis will impact pockets around the world differently, points out a panel of global valuation experts in a free webinar the iiBV hosted.
Wrestling with Guideline Public Market Evidence: What You Need to Know
Turbulence in public markets is wreaking havoc on unprepared appraisers. Thankfully, the Guideline Public Company Method (GPCM) is one of the tools BV experts can use to capture the effect of today’s volatile economy on the value of an appraisal target. G ...
The Market Approach During Recessionary Times Is a Harbinger of Risk
“Ignoring the market evidence during periods of recession is a recipe for poor quality service,” said Rob Schlegel (Houlihan Smith & Co.) during BVR’s recent webinar “The Market Approach Today: Deciphering Messages From Markets, Courts, and Common Apprais ...
The Market Approach Today: Deciphering Messages From Markets, Courts, and Common Appraisal Errors
You would be forgiven for viewing this as the age of the income approach. While increased scrutiny through scholarship and judicial decision has raised the income approach to new prominence, a turbulent economy and tempestuous public markets have caused some appraisers to shy away from the market approach. But keep in mind: No valuation is complete without thorough analysis, and market evidence appears throughout the valuation process. In The Market Approach Today: Deciphering Messages From Markets ...
How to manage your BV career momentum amid the crisis
Valuation professionals who maintain career momentum during this time of crisis will stand out when it’s all over.
AICPA issues a Subsequent Event Toolkit
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.