Global BVU News and Trends May 2024
Business valuation news from a global perspective.
BV News and Trends April 2024
A monthly roundup of key developments of interest to business valuation experts.
Which option-based methods are favored for DLOM?
The Finnerty average put model is the option-based method cited the most for estimating a discount for lack of marketability (DLOM), according to our recent survey.
Good deal of interest in new option-based DLOM calculator
We were happy to see the number of readers who were interested in trying out an online calculator for estimating a discount for lack of marketability (DLOM) we announced last issue.
Interested in more support for your DLOM?
There have been some rumblings in the business valuation profession about the validity of the traditional ways to estimate a discount for lack of marketability (DLOM).
2023 Johnson/Park DLOM study is now available
The Johnson/Park empirical method to estimate a discount for lack of marketability (DLOM) has been used in several tax court cases, including the first family limited partnership (FLP) case to go to trial.
Quantifying DLOMs for Minority and Controlling Interests
The discount for lack of marketability is one of the largest and most important adjustments made in the valuation of a privately held business. It is crucial to understand that an investor purchases the privately held interest at a discount to increase the rate of return on the investment. This increased rate of return offsets the additional risk the lack of marketability of the investment causes. This webinar will discuss how to use this concept ...
BV News and Trends December 2023
A monthly roundup of key developments of interest to business valuation experts.
Practice opportunity: Buy-sell agreements
A “vast opportunity” for appraisers can be found in buy-sell agreements, according to Jeff Tarbell (Houlihan Lokey) and Riley Busenlener (Chaffe & Associates Inc.), who is also an attorney.
BV 2023, Year in Review: Top 10 List
The year 2023 was full of change. How have high interest rates and market volatility impacted the cost of capital and minority discounts? What were some of the top cases impacting business valuation? What does the new lease accounting standard mean for valuations? What has changed in tax regulation? In this webinar, we highlight 10 major topics that impacted business valuation in 2023 and discuss implications to valuators in the upcoming year.
BV News and Trends November 2023
A monthly roundup of key developments of interest to business valuation experts.
The No. 1 valuation issue that triggers an IRS audit
Discounts continue to be the No. 1 red flag that triggers an IRS audit, according to former IRS manager Michael Gregory (Michael Gregory Consulting LLC), speaking at the recent American Society of Appraisers (ASA) International Appraisers Conference in New Orleans.
BV News and Trends October 2023
A monthly roundup of key developments of interest to business valuation experts.
Free updated guide to the Stout restricted stock study
The 2023 edition of the “Stout Restricted Stock Study Companion Guide” is now available, and it reflects updated tables and graphs that contain new transactions.
10 Short Takes From NACVA’s July Super Conference
There were top speakers, interesting sessions, and a good turnout (about 200) for the three-day NACVA Business Valuation & Financial Litigation Super Conference in person in Snowbird, Utah (and also online). Here are a few quick takeaways from some of the sessions we attended.
New app for the Margrabe options approach to DLOM
Dr. Ashok Abbott (West Virginia University) is developing a calculator that uses the Margrabe options approach to estimating a discount for lack of marketability (DLOM).
2023 Stout restricted stock study guide now available
The 2023 edition of the “Stout Restricted Stock Study Companion Guide” is now available, and it reflects updated tables and graphs that contain new transactions.
Young practitioners question traditional discount methodologies
“Outdated studies” and “emerging quantitative methods” are some reasons why young valuation practitioners are questioning the traditional methodologies for estimating discounts for lack of control and marketability (DLOC and DLOM).
BV News and Trends June 2023
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends May 2023
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends April 2023
A monthly roundup of key developments of interest to business valuation experts.
NICE DLOM Method for FLPs Gets Peer Reviewed
A paper describing the theory and mechanics of the nonmarketable investment company evaluation (NICE) method for estimating a discount for lack of marketability (DLOM) has been published in the Business Valuation Review, the peer-reviewed journal of the American Society of Appraisers.
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
Stout updates its restricted stock study companion guide
The 2022 edition of the “Stout Restricted Stock Study Companion Guide” is now available, and it reflects updated tables and graphs that contain new transactions.
Users inspire update to the Stout DLOM calculator
Estimating a discount for lack of marketability (DLOM) has just become more robust with a new update to the Stout DLOM calculator.