BV News and Trends March 2024
A monthly roundup of key developments of interest to business valuation experts.
Harvesting Knowledge: The Valuation of Wineries
A winery is a unique business that is easy to understand but difficult to value. This presentation will dig into the anatomy of a transaction and how deals are priced and closed as well as the valuation of a winery for compliance purposes. These different scopes of work present different challenges that focus on a buildup of value and assets combined with a fundamental understanding and value of consolidated cash flows. We will present two ...
BV News and Trends January 2024
A monthly roundup of key developments of interest to business valuation experts.
USPAP Q&A addresses AI
AI tools are not a substitute for an appraiser’s judgment.
AI studies top several McKinsey lists for 2023
Of interest to valuation experts are two works from McKinsey that examine artificial intelligence (AI).
McKinsey examines value impact of generative AI
A recent McKinsey report shows the various areas of business operations and the expected value impact from the use of generative AI.
Heat Maps for Valuing Venture-Backed vs. Closely Held Firms
During a recent BVR webinar, Joe Orlando (Exit Strategies Group) and Eric Sundheim (Mercovus Valuations) presented some heat map charts that illustrate the differences between the due diligence, tools, and approaches to valuing a venture-backed firm versus a closely held company.
BV News and Trends October 2023
A monthly roundup of key developments of interest to business valuation experts.
When pest control company owners want to bug out
What does the financial due diligence process look like for a pest control business?
BV News and Trends April 2022
A monthly roundup of key developments of interest to business valuation experts.
Tip: Add an expiration date to an engagement letter
During a very informative—and entertaining—webinar on expert witnessing, Robert Vance (Forensic & Valuation Services PLC), gave this advice: Consider putting an expiration date on the cover letter to your proposed engagement letter.
Start due diligence before accepting an engagement
This is one of the tips in an article from the latest journal of the Chartered Business Valuators Institute (CBV Institute), Canada’s valuation professional organization (VPO) and standard-setter.
Paganelli v. Lovelace
This case resulted in the court issuing a partial summary judgment in favor of the defendant (and counterclaimant) in a matter regarding a sale/purchase contract between the plaintiff and the defendant. The cross-allegations resulted from the defendant allegedly breaching the purchase contract, while the defendant alleged that the plaintiff first breached the contract and committed fraud in entering into the contract.
Court Issues Partial Summary Judgment in Favor of Party Alleging Breach of Contract
This case resulted in the court issuing a partial summary judgment in favor of the defendant (and counterclaimant) in a matter regarding a sale/purchase contract between the plaintiff and the defendant. The cross-allegations resulted from the defendant allegedly breaching the purchase contract, while the defendant alleged that the plaintiff first breached the contract and committed fraud in entering into the contract.
Factoring Workforce Engagement Into a Business Valuation
Someday, a “workforce engagement adjustment” will be made to the calculation of the value of an assembled workforce, say a panel of speakers during a BVR webinar. In the meantime, all valuation experts should be taking this factor into account for any business valuation when assessing specific company risk.
Workforce engagement and valuation
Someday, a “workforce engagement adjustment” will be made to the calculation of the value of an assembled workforce, say experts in an article in the October 2019 issue of Business Valuation Update.
The Due Diligence Imperative in the Era of Value-Based Reimbursement
With the emergence of value-based reimbursement, such as accountable care organizations (ACOs), clinically integrated networks (CINs), and bundled payment models, which rely on achieving the “Triple Aim” of healthcare at lower cost, U.S. hospitals and other service providers are increasingly looking to change how services are being delivered by seeking more collaborative relationships with physicians. The rise of these emerging healthcare organizations (EHOs) to address value-based reimbursement initiatives has led to a growing number of ...
Defense expert testimony supports ESOP valuation and fairness opinions
A recent ESOP decision involving allegations of breach of fiduciary duty and engaging in a prohibited transaction turned on whether the ESOP trustee’s financial advisor had performed proper due diligence and issued defensible fairness and valuation analyses.
Lack of Due Diligence and Industry Experience Lead to Loss of $4 Million in Damages
Expert’s lost profits analysis fails for lack of industry experience, objective analysis, or data.
Total Clean, LLC v. Cox Smith Matthews, Inc.
Comprehensive research and analysis lend credibility to financial expert’s calculations for over $8 million lost profits and lost goodwill for restaurant.
Intellectual property in M&A
Intellectual Property Assets in Mergers and Acquisitions , Lanning Bryer and Melvin Simensky , John Wiley & Sons, Inc., December 2001. 605 Third Avenue, New York, NY 10158, (800) 225-5945, ww ...
Continuing IRS attacks on reality of pass-through entities
This article pulls together court cases, Field Service Advice (FSAs) and Technical Advice Memoranda (TAMs) that show the courts' and the IRS's positions on the valuations of interests in pass-through ...
Protect clients against liability in buyout deals
I never cease to be amazed at the huge damage awards in breach of fiduciary duty liability suits in conjunction with company buyouts. Most of these awards could have been prevented. Last issue we ha ...
An Asset Buyer's Worst Nightmare
"An Asset Buyer's Worst Nightmare," White, Dennis J., M&A Today , May 1999, p. 11. Asset sales are becoming popular, in part, so buyers can avoid assuming unknown liabilities of the seller. In ...
Markets awash in capital for private equity financing
The Institute for International Research presented a new conference, "Financing Privately-Owned Middle Market Companies," in Atlanta Jan. 25-26. Although the conference was poorly attended, there were ...