A Hybrid Approach to Determining Company-Specific Risk
This webinar will first explain the theoretical reasoning as to why a company-specific risk premium is necessary for a small business when using the buildup method to estimate the cost of capital. I will then present a hybrid approach using the multiattribute utility model to quantify the company-specific risk premium. Finally, I will show how to incorporate Monte Carlo simulation into the model to determine the range of potential company-specific risk premium. Attendees will have ...
Measuring, Documenting, and Defending the Company-Specific Equity Risk Premium Selection
Join Robert Reilly and Connor Thurman for a dive into the theoretical basis for including a company-specific equity risk premium (CSRP) in the analyst’s cost of equity capital measurement analysis. Learn about measurement procedures and documentation procedures that the analyst may need to perform in the CSRP selection analysis. Also attendees will receive guidance to aid the analyst in the defense of the CSRP selection in a litigation context. Get the best practices you need ...
Valuing Residential and Commercial Construction Companies
Cash flow seasonality, bid requirements, license particulars, economic forces, and ubiquitous litigation are all hallmarks of the residential and commercial construction industries and all unique factors when appraising a construction company. Join What it’s Worth guide author and expert Pasquale Rafanelli for a full inspection of residential and commercial construction company valuation issues from accounting methods to value drivers. Avoid the common valuation mistakes that appraisers make and learn to answer the one question on ...
Recent Cases from the Delaware Chancery: What Appraisers Need to Know Now
Join Bill Kennedy for a summary of key valuation issues ruled on by the Delaware Chancery and Delaware Supreme Court. Get coverage of recent cases and discover trends seen in the courts. Learn how the courts have treated the different valuation methods in recent cases, as well as factors to consider when applying the methods. No matter where you practice, the takeaways from this session will help valuation professionals deliver a quality, litigation-ready report.
New cost of capital resources available
Two sources of industry betas were introduced this week in BVR’s Cost of Capital Professional (CCPro) to help in estimating the industry risk premium (IRP) component of the buildup method for developing the cost of capital for a private company.
Expert’s inability to defend income analysis ‘is decidedly troubling,’ court says
Judges are alert to incongruities in valuations, as is clear from a recent condemnation case in which landowners hired three experts to calculate the compensation owed to them.
Expert’s Failure to Explain Basis for Compensation Analysis Renders Testimony Inadmissible
In condemnation case requiring fair market value analysis to determine compensation due to landowners, court excludes defense expert testimony, citing failure to follow mandated methodology and standard of value; court calls aspects of loss calculation based on income approach “disturbing.”
Rover Pipeline LLC v. 10.55 Acres
In condemnation case requiring fair market value analysis to determine compensation due to landowners, court excludes defense expert testimony, citing failure to follow mandated methodology and standard of value; court calls aspects of loss calculation based on income approach “disturbing.”
The New Duff & Phelps Cost of Capital Navigator—(Some of) Your Questions Answered!
Responses to audience questions during the first public demo of the Duff & Phelps online Cost of Capital Navigator, which will replace the print versions of the Valuation Handbook series.
Duff & Phelps Moves Cost of Capital Data to Online Platform
Duff & Phelps is launching the online Cost of Capital Navigator, which will replace the print versions of the Valuation Handbook series.
SECBA gets sneak preview of the D&P Cost of Capital Navigator
The hardcover version of the Duff & Phelps Valuation Handbook – U.S. Guide to Cost of Capital will no longer be published—it is being replaced by the Duff & Phelps Cost of Capital Navigator, an interactive online application.
Tax Court Valuation of Public Utility Gets Mixed Marks From State High Court
State Supreme Court says, in valuing public utility, Tax Court had discretion to adopt Commissioner expert’s position on company-specific risk premium and build-up method but failed to explain choice of specific beta factors; Supreme Court remands.
Tax Court Valuation of Public Utility Gets Mixed Marks From State High Court
State Supreme Court says, in valuing public utility, Tax Court had discretion to adopt Commissioner expert’s position on company-specific risk premium and build-up method but failed to explain choice of specific beta factors; Supreme Court remands.
Minn. Energy Res. Corp. v. Commissioner of Revenue
State Supreme Court says, in valuing public utility, Tax Court had discretion to adopt Commissioner expert’s position on company-specific risk premium and build-up method but failed to explain choice of specific beta factors; Supreme Court remands.
Valuators in Taking Case Disagree Over Measure of Damages
Court deems expert’s discretionary cash flow analysis an appropriate formula for determining loss to owner of expropriated business but says compensation calculation may be based on other methods, including rule of thumb guide for selling donut shop.
City of Baton Rouge v. Jay’s Donuts, Inc.
Court deems expert’s discretionary cash flow analysis an appropriate formula for determining loss to owner of expropriated business but says compensation calculation may be based on other methods, including rule of thumb guide for selling donut shop.
Lemmen v. Lemmen
Court of Appeals affirms minority and marketability discounts for cash-rich, closely held business in divorce; dissent urges statutory fair value standard.
S corporation versus C corporation values
In this article on the topic of C versus S corporation values, Chris Mercer addresses problems and choices for the appraiser in the aftermath of three controversial court decisions ( Gross v. Commiss ...
"Highly troubled" by Estate of Adams
I am highly troubled by several recent circumstances. You are familiar with Gross (BV Update has discussed it at length). It is clear to anyone with a modicum of financial background that ...
Pre- or after-tax
My question is: Is the build-up method outlined in Ibbotsons SBBI Valuation Edition pre-tax or after-tax?
From experts in valuation in each of nine industry groups to a takeoff on Survivor, AICPA BV Conference offers variety
The 2001 AICPA Business Valuation Conference held at the Venetian in Las Vegas December 2-4 was attended by 840 people (by the way, the Venetian served the best conference food that I've ever experienced).
Tax Court Determines Capital Gains Discount for Real Estate Holding Company
This issue in this estate tax matter is the fair market value of decedent's 82.76% interest in Valley Improvement Co. Inc. (VIC), a real estate holding company, as of Jan. 12, 1994.
Borgatello v. Commissioner
T.C. Memo. 200-264 UNITED STATES TAX COURT ESTATE OF CHARLES A. BORGATELLO, DECEASED, C. NORMAN BORGATELLO AND JOSEPHINE E. DONNELLY, CO-EXECUTORS, AND C. NORMAN BORGATELLO, SUCCESSOR TRUSTEE TO THE CHARLES A. BORGATELLO LIVING TRUST, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 24756-97. Filed August 18, 2000. John W. Ambrecht and Gregory Arnold, for petitioners. Donna F. Herbert, for respondent. MEMORANDUM OPINION WELLS, Chief Judge: Respondent determined a deficiency of $3,424,504 in the ...
Tax Court Allows Capital Gains Discount for Real Estate Holding Company
The issue in this estate tax matter is the fair market value of decedent's 82.76% interest in Valley Improvement Co. Inc. (VIC), a real estate holding company, as of Jan. 12, 1994.
Built-In Capital Gains Considered in Build Up of the Marketability Discount
The Tax Court valued a real estate holding company using the net asset value method.