ASA/Pratt Valuing a Business book is delayed
For those of you who have preordered or will order the new sixth edition of Valuing a Business, supply-chain shortages have caused a delay.
Global BV News: Cost of capital parameters in Europe as of Dec. 31, 2021
ValueTrust has released the 9th edition of its “European Capital Market Study” that serves as a comprehensive compilation of capital market parameters such as cost of capital and implied as well as historical risk premiums for European countries.
In Re Riddle
The appeal in this case dealt with, among other issues, the trial court’s decision to adopt the husband’s expert’s value that was based on a capitalization of earnings based on expected future income. The appellate court noted that the evidence from the trial showed that the business received no revenue after the wife sold her interest to a third party, and there was no evidence that similar earnings would occur in the future. The trial court’s determination of value was vacated and remanded.
Trial Court’s Decision of Value of Business Based on a Going Concern Is Reversed and Remanded
The appeal in this case dealt with, among other issues, the trial court’s decision to adopt the husband’s expert’s value that was based on a capitalization of earnings based on expected future income. The appellate court noted that the evidence from the trial showed that the business received no revenue after the wife sold her interest to a third party, and there was no evidence that similar earnings would occur in the future. The trial court’s determination of value was vacated and remanded.
Book Review: Valuing a Business—The Analysis and Appraisal of Closely Held Companies, 6th Edition
The new edition of Shannon Pratt’s book, which gives a heavy dose of theory and has been updated by a team of 67 contributors and published by the American Society of Appraisers, is reviewed.
Book Review: Understanding Business Valuation, 6th Edition
Gary Trugman (Trugman Valuations) has updated his book, which shows you how to apply valuation theory with practical examples from actual engagements and sample valuation reports, written in an easy-to-understand style.
Additional Takeaways From the 2021 ASA International Conference
Interesting sessions covering risk-free rates, equity risk premia, expert testimony, appraisal reviews, cannabis valuations, and more from the American Society of Appraisers’ International Conference, held in Las Vegas.
BV News and Trends March 2022
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends March 2022
Business valuation news from a global perspective.
Global BV News: RICS withdraws global COVID-19 valuation practice alert
Because many governments and markets globally have now eased restrictions and protocols relating to COVID-19 and the impact of the pandemic is clearer, RICS has withdrawn its global COVID-19 valuation practice alert as of March 3.
No valuation adjustment for alleged acts of oppression
In a Connecticut case, four siblings were partners in a number of restaurant properties and one of the partners (who had a 25% interest) was ousted by the others.
Mercer examines appraisal review
After a two-month break from his blog, veteran valuer Chris Mercer (Mercer Capital) has started a series of thoughtful posts focusing on appraisal review, a process he deems “essential.”
Yeanoplos honored with ASCPA life membership
Earlier this year, we ran an item about how the future of the valuation profession depends on practitioners giving back to the profession.
Global BV News: CBV Institute adds 69 new members
Now with about 2,300 members, the CBV Institute, Canada’s valuation professional organization (VPO) and standard, recently added 69 new members to its ranks of professionals entitled to use the CBV designation.
Stout Risius Ross, LLC v. Aspen Specialty Ins. Co.
Stout Risius Ross LLC asked for a declaratory judgment to require Aspen Specialty Insurance Co. to defend Stout Risius Ross in a lawsuit brought against it by its former client, Wilmington Trust, in an ESOP matter. Stout Risius Ross performed a valuation for an ESOP transaction that the court later criticized in that matter (Brundle). After being sued by Wilmington Trust, Stout Risius Ross filed a claim with Aspen, which was denied by Aspen, citing the “prior knowledge” clause. The court denied Stout Risius Ross’ motion for declaratory judgment and did not allow Stout Risius Ross to amend its motion.
U.S. District Court Dismisses Accounting Firm’s Plea to Require Insurance Company to Defend a Lawsuit Against It
Stout Risius Ross LLC asked for a declaratory judgment to require Aspen Specialty Insurance Co. to defend Stout Risius Ross in a lawsuit brought against it by its former client, Wilmington Trust, in an ESOP matter. Stout Risius Ross performed a valuation for an ESOP transaction that the court later criticized in that matter (Brundle). After being sued by Wilmington Trust, Stout Risius Ross filed a claim with Aspen, which was denied by Aspen, citing the “prior knowledge” clause. The court denied Stout Risius Ross’ motion for declaratory judgment and did not allow Stout Risius Ross to amend its motion.
Sproule v. Johnson
In this partnership dissolution case, the North Dakota Supreme Court affirmed the district court’s decision to use an appraisal of the Canadian entity as of 2019 instead of a value from an earlier agreement in principal. The later date was within the purview of the district court’s flexibility. Further, the Supreme Court affirmed the district court’s decision not to reduce the value of a partnership asset of stock in a Canadian corporation for taxes.
North Dakota Supreme Court Affirms Valuation Date, Affirms No Deduction for Taxes in Determining Stock Value
In this partnership dissolution case, the North Dakota Supreme Court affirmed the district court’s decision to use an appraisal of the Canadian entity as of 2019 instead of a value from an earlier agreement in principal. The later date was within the purview of the district court’s flexibility. Further, the Supreme Court affirmed the district court’s decision not to reduce the value of a partnership asset of stock in a Canadian corporation for taxes.
TAF calls for papers on the ‘art of valuation’
The Appraisal Foundation (TAF) has issued a call for qualified candidates to submit proposals for papers that will go into a book on the art of doing business valuation.
Agenda set for NYSSCPA BV and litigation services conference May 16
Each year, BVWire attends the annual New York State Society of CPAs’ Business Valuation and Litigation Services Conference, and registration is now open for this year’s event, which will be webcast May 16.
Global BV News: Reminder: Take a survey on ESG and valuation
The International Valuation Standards Council (IVSC) would like to hear from business valuation providers, users, and investors on the issue of environmental, social, and governance (ESG).
Sources of new business you may overlook
Business valuation professions know that attorneys are a prime source of new engagements, but other sources may not immediately come to mind.
ASA launches new website
The American Society of Appraisers (ASA) has launched a “newly refreshed” website (appraisers.org) designed to be faster, easier to navigate, and more user-friendly.
Credential program for value growth advisors June 6-10
Valuation professionals who want to extend their practices to advising business owners on ways to maximize that value can pursue a Certified Value Growth Advisor (CVGA) credential.
Global BV News: CBV Institute prexy on BV profession challenges
The influx of automated valuation models and the demand for accredited professionals are two major challenges the business valuation profession faces, says Christine Sawchuk, president and CEO of the CBV Institute, Canada’s valuation professional organization (VPO), in an interview.