BV News and Trends February 2024
A monthly roundup of key developments of interest to business valuation experts.
Hitchner’s ‘myth busters’ tackle two more issues
Jim Hitchner (Financial Valuation Advisors) and his team of fellow AICPA BV Hall of Fame alumni have taken on two more BV myths in his December issue of Hardball With Hitchner.
In re Hussain
Both parties appealed this Illinois divorce case. While several issues were appealed, we focus on the value of the business and the determination of debts against the business. Since the trial court was not given any substantial evidence as to the value of the business, it determined the value on its own with limited information. The appellate court affirmed that value. Additionally, the appellate court affirmed the trial court’s disallowance of debts against the business.
Illinois Appellate Court Affirms Value of Business Where the Parties Provided No Evidence
Both parties appealed this Illinois divorce case. While several issues were appealed, we focus on the value of the business and the determination of debts against the business. Since the trial court was not given any substantial evidence as to the value of the value of the business, it determined the value on its own with limited information. The appellate court affirmed that value. Additionally, the appellate court affirmed the trial court’s disallowance of debts against the business.
BV News and Trends October 2023
A monthly roundup of key developments of interest to business valuation experts.
Sustainability triggers in private credit valuation
“Sustainability-linked loans—where a loan’s economics are tied to the borrower’s achievements of certain environmental, social or governance key performance indicators—aren’t coming to the loan market. They’re already here,” writes John Czapla (VRC) in an article in Private Debt Investor.
A Look Back: Including ESG in Valuation Models
Quantified the impact of environmental, social, and governance (ESG) factors and measuring their effects is not a new phenomenon. Thanks to the BVResearch Pro platform, here are two ways experts have done this before.
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
High ESG scores lower the cost of capital, study finds
A recent paper says there is significant evidence that companies having a higher environmental, social, and governance (ESG) score have a lower cost of capital.
Highlights From the 2022 NYSSCPA BVLS Conference
Money laundering, earnouts, valuing debt, and SPAC enforcement are a few of the topics presented at the Business Valuation and Litigation Services (BVLS) conference hosted by the New York State Society of CPAs. Here are some key takeaways.
How Direct Loan Market Participants Are Handling the Handoff From LIBOR to SOFR
The transition from the London interbank offered rate (LIBOR) to the secured overnight fund rate (SOFR) will continue to present challenges for private lenders and their operating and valuation teams as long as loan portfolios have a mix of LIBOR- and SOFR-based deals and as long as there are numerical differences between term SOFR and term LIBOR. The author is chairman of Valuation Research Corp. and head of its portfolio securities valuation practice.
Highlights from the NYSSCPA BV conference
BVWire attended the New York State Society of CPAs’ Business Valuation and Litigation Services Conference, and—as always—it was an excellent event.
BV News and Trends April 2022
A monthly roundup of key developments of interest to business valuation experts.
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.
Houlihan Lokey and ELFA issue private debt valuation guide
Houlihan Lokey and the European Leveraged Finance Association (ELFA) have published a report as part of ELFA’s Diligence Series called Technical Guide for Valuation of Private Debt Investments.
Valuers Converge (in Person!) at the ASA International Conference
This is a recap of some sessions covering small promissory notes, shareholder disputes, sports businesses, valuing defensive patents, IRS news, competing appraisals, and more. Over 600 valuation experts from all disciplines came together for the American Society of Appraisers’ International Conference in Las Vegas, October 24-26. This was a hybrid event, and many of the attendees were on-site.
Global BV News and Trends September 2021
Business valuation news from a global perspective.
Premier ASA Complex Securities Conference Breaks Attendance Record
Summaries and takeaways from the American Society of Appraisers’ first ASA Complex Securities Virtual Conference.
Debut of complex securities conference is tomorrow, May 20
Want to move from standard business appraisals to more difficult-to-value assets? Attend the Complex Securities Virtual Conference on May 20, presented by the American Society of Appraisers (ASA).
Free Excel models on valuing complex debt
During a recent BVR webinar, several case studies were presented on valuing complex debt instruments.
BVU News and Trends January 2021
A monthly roundup of key developments of interest to business valuation experts.
Navigation Through the Maze in Complex Debt Instruments Valuation
Global convertible security issuance has surged in the wake of the COVID-19 outbreak as companies rush to raise cash to see them through the economic impact. This has resulted in an increase in demand for fair valuation requirement for convertible instruments. However, determination of fair value of convertible instruments can be a challenging task. Multiple provisions and attributes of the underlying security need to be considered and modeled. Join Mark Zyla, Rajesh C. Khairajani, and ...
Prospects grow for valuing promissory notes, says Mercer
There is an increasing number of opportunities for analysts in valuing promissory notes, says Chris Mercer (Mercer Capital) during the recent AICPA Forensic & Valuation Services Conference.
School of Probability: The Use of Monte Carlo in Valuation
The one thing we know about valuations is that the future is unpredictable. How we deal with that uncertainty is critical to developing credible valuations. Join Oksana Westerbeke and Keith Konen to learn how Monte Carlo simulations can be used to deal with the uncertainty, allowing you to generate insights for your client and build credible valuations.
Small Business, Bankruptcy and Business Valuation
The Small Business Restructuring Act makes Chapter 11 reorganization proceedings faster, cheaper and more efficient for companies that come to Bankruptcy Court with debts below the statutory cap. That may allow certain small business to survive the current turmoil resulting from the corona virus pandemic. What is, however, not yet clear is the role of business valuators in the process. Michael Pakter explains what that role might be.