USPAP 2020-21 exposure draft issued
The Appraisal Standards Board has issued a First Exposure Draft of proposed changes for the 2020-21 edition of the Uniform Standards of Professional Appraisal Practice (USPAP).
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
Special situations affecting home healthcare value
Healthcare is arguably the most highly regulated industry in the country. For any healthcare valuation, appraisers should have a reasonable understanding of regulations affecting healthcare providers and nonprofit organizations and a grasp of the current changes that Congress and state legislatures may enact. Excerpted from the Guide to Ancillary Healthcare Services Valuation, here are some special considerations to take into account when valuing home healthcare businesses.
Verition Partners Master Fund Ltd. v. Aruba Networks, Inc. (Aruba II)
Court of Chancery denies petitioners’ motion for reargument, finding that, in light of high court’s Dell and DFC decisions, the decision to use the unaffected market price as the fair value indicator was not so “ridiculous” or “absurd” as to indicate the Court of Chancery misapprehended the law.
Chancery Defends Use of Market Price Citing Recent High Court Rulings
Court of Chancery denies petitioners’ motion for reargument, finding that, in light of high court’s Dell and DFC decisions, the decision to use the unaffected market price as the fair value indicator was not so “ridiculous” or “absurd” as to indicate the Court of Chancery misapprehended the law.
Letter to the Editor of BVWire re: control premiums
Your recent announcement about the 13th Annual Fair Value Conference in Los Angeles may leave unwary readers with the impression that the MPAP guidance on control premiums in VFR #3 applies to all business valuation work.
Update on the hospice market and valuations
The hospice market is fragmented with many small independent players that are not associated with health systems, say speakers on a recent BVR webinar.
USPAP 2020-21 exposure draft due in May
A first exposure draft of proposed changes for the 2020-21 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) will be published in May 2018.
Valuation benchmarks for ASCs
HealthCare Appraisers Inc. has interviewed ambulatory surgery centers(ASCs) to determine trends in the value and characteristics of ASC ownership interests.
Time to rethink the control premium
When you use the guideline public company method, do you always apply a control premium?
BVU News and Trends May 2018
A monthly roundup of key developments of interest to business valuation experts.
Nursing Home Valuation Must Separate Real Estate From Business Activity
In tax assessment dispute involving nursing home, high court says where facility performs business activity and real estate activity, tax appraisal must separate business value from real estate value; Board of Tax Appeals failed to ensure proper allocation of sales price among assets.
Arbors East RE, L.L.C. v. Franklin County Bd. of Revision
In tax assessment dispute involving nursing home, high court says where facility performs business activity and real estate activity, tax appraisal must separate business value from real estate value; Board of Tax Appeals failed to ensure proper allocation of sales price among assets.
Appraisal rights in the U.S. and EU
In the U.S., there has been a surge of appraisal petitions and appraisal arbitrage, but this is not the case in the EU, according to a paper by Alexandros Seretakis (Trinity College, Dublin).
Briefing examines recent appraisal decisions
Since the Delaware Supreme Court issued its landmark Dell appraisal decision (see prior coverage), the Delaware courts have issued three appraisal decisions—Aruba, AOL, and SWS—which, unlike Dell, assigned no weight to the deal price in setting fair value below the deal price.
D&P updates multiples in healthcare services
The S&P Healthcare Services Index declined 1.9% over the last month, but outperformed the S&P 500, which declined 2.7% over the same period, according to the March 2018 Healthcare Services Sector Update from Duff & Phelps.
Court of Chancery disregards deal price where sales process is not ‘Dell compliant’
Recent rulings from the Delaware Supreme Court make it seem as if the discounted cash flow analysis has lost its top ranking among valuation methodologies in statutory appraisals involving publicly traded companies. Not exactly.
New paper examines statutory rights of appraisal in Delaware
“The Anna Karenina principle is alive and well in the Delaware courts,” according to a paper that explores statutory rights of appraisal and the search for the sometimes “elusive” concept of fair value.
No takers yet for Dietrich and Smith debate challenge
A few issues ago, we relayed the message that healthcare valuation experts Mark Dietrich and Tim Smith have offered to debate anyone who disagrees with their views on the fair market value of physician compensation.
First-ever live streaming of ASB meeting on USPAP
The Appraisal Standards Board (ASB) of The Appraisal Foundation will conduct a public meeting on April 20 at 9:00 a.m. (Pacific Time) in Las Vegas where you’ll have a chance to give input on the Discussion Draft of Potential Areas of Change for the 2020-21 edition of Uniform Standards of Professional Appraisal Practice (USPAP).
Control premium advisory revisited
A member of the working group involved in the creation of Valuations in Financial Reporting Valuation Advisory 3: The Measurement and Application of Market Participant Acquisition Premiums, issued by The Appraisal Foundation, has written an article that reiterates the findings of the advisory.
Problematic process causes Chancery to use DCF as fair value indicator
The discounted cash flow analysis is not dead yet in the Delaware Court of Chancery.
Court of Chancery exalts stock price as most accurate indicator of fair value
The Delaware Court of Chancery recently had an opportunity to put into practice the directives the state’s high court had issued in DFC Global and Dell in terms of calculating fair value in a statutory appraisal proceeding.
Survey says? Alternative approach to the fair market value of physician compensation
For well over a decade, the use of physician compensation surveys has been the predominant paradigm for establishing the fair market value of physician compensation. In two recent BVR webinars on the fair market value of physician compensation, healthcare valuation experts Mark Dietrich and Timothy Smith refute conventional wisdom regarding the compensation hospitals pay to employ physicians and offer an alternative approach to determine fair market value.
Verition Partners Master Fund Ltd. v. Aruba Networks, Inc. (Aruba I)
In statutory appraisal proceeding, Court of Chancery says unaffected market price provides “direct evidence of the collective view of market participants” as to target’s fair value whereas deal-price-minus-synergies is a less reliable “indirect measure.”