Valuing Customer Relationships: The Do's and Don'ts of the Distributor Method
While the relief from royalty method and multiperiod excess earnings method are effective tools for valuing intangible assets such as customer relationships, they rely on market data that can be both highly subjective and of poor comparable value to the subject company. As an alternative, the distributor method provides appraisers with a market-based proxy for use in valuing customer relationships. Join experts Edward Hamilton and Sean Woodward to explore the strengths and weaknesses of customer ...
Delaware Court of Chancery says no to expert’s novel approach to beta calculation
In an appraisal proceeding in which the Delaware Court of Chancery favored the discounted cash flow analysis as the means with which to determine fair value, the court had sharp words for the company expert’s decision to introduce a new way for calculating equity beta.
CFAI argues listed companies cannot afford proposed ‘wasting asset’ treatment of goodwill
BVWire—UK continues to cover the response to early-stage efforts to amortize the world’s goodwill assets.
New edition of fair value book is available
The third edition of Fair Value Measurement: Practical Guidance and Implementation is now available.
Analysts, management, and investors all benefit from better information on intangibles
The UK’s FRC is not alone in its expectations for improved reporting on intangible assets, though their discussion paper from February 2019 (‘Business Reporting of Intangibles: Realistic Proposals’) remains front and center as valuation organisations (and IASB/FASB) review current methods.
Business valuation essentials: don’t overvalue factored assets
Two years out, Carillion remains the largest trading liquidation under UK insolvency law.
Valuers and Forensics Experts Converge at the 2019 AICPA FVS Conference
A mix of topics had something for everyone at this conference. Of note were some excellent sessions on expert testimony and there was a definite emphasis on fair value for financial reporting.
In re Panera Bread Company
In appraisal action involving sale of public company, court says sale process had “objective indicia of reliability,” justifying use of deal price for fair value determination; synergy deduction is appropriate to account for value from anticipated cost and tax-related savings due to merger.
Court Considers Deal Price Persuasive Indicator of Fair Value and Approves Synergy Deduction
In appraisal action involving sale of public company, court says sale process had “objective indicia of reliability,” justifying use of deal price for fair value determination; synergy deduction is appropriate to account for value from anticipated cost and tax-related savings due to merger.
Connecticut court says ‘no’ to tax affecting but limits the reach of its ruling
In a buyout dispute involving a Connecticut family business, an appellate court recently upheld the trial court’s decision not to tax affect the earnings of the company in valuing the departing shareholder’s interest, even though experts for both sides tax affected.
Fair Value Measurements in 2020
CEIV. MPF. IVS. In the world of Fair Value Measurement it can be hard to keep your acronyms straight let alone keep your pulse on the latest developments. Expert Mark Zyla leads the demystifying session to help the rest of us to stay current on the issues. Bring questions and start 2020 off right with a kick off session from the man who literally wrote the book on Fair Value Measurements.
Coster v. UIP Companies, Inc.
In breach of fiduciary duty action, court says stock sale passes enhanced fairness review; appraiser valuing real estate investment services company before sale is eminently qualified and knowledgeable about industry; capitalized cash flow method “generated a reliable indicator” of company’s value.
Valuation Underlying Controversial Stock Sale Satisfies Highest Scrutiny
In breach of fiduciary duty action, court says stock sale passes enhanced fairness review; appraiser valuing real estate investment services company before sale is eminently qualified and knowledgeable about industry; capitalized cash flow method “generated a reliable indicator” of company’s value.
ASA sets date set for its Fair Value Conference in Los Angeles
Regardless of whether or not you practice in the area of fair value, mark your calendar for the 15th Annual ASA/USC Fair Value conference on Thursday, June 18, at the offices of KPMG in downtown Los Angeles.
BV 2020: What to watch for in the new year
Our last issue covered some highlights of the year 2019 in business valuation, so now let’s look ahead to 2020.
Date set for ASA Fair Value Conference in New York City
The American Society of Appraisers’ series of fair value conference, held in New York City, Los Angeles, and San Francisco, are definite stops on BVWire’s conference trip agenda.
Latest Resources to Help Improve the Valuation of Financial Instruments
A recap of recent resources that have emerged, including some new credentialing, that are designed to improve this area of practice. This is the valuation profession’s response to the concerns of financial regulators and others around the world about the quality and consistency of financial instrument valuations.
Noteworthy highlights of the year in BV for 2019
It was a notable year for the business valuation profession in 2019, and BVWire was on the scene each and every week covering all the important developments.
Finishing touch put on the CEIV credential program
The Quality Monitoring (QM) program for the Certified in Entity and Intangible Valuations (CEIV) credential has been finalized.
R.D. Clark & Sons, Inc. v. Clark
Trial court’s fair value determination in buyout dispute involving family business withstands appeal, including decision not to tax affect or apply majority and minority discounts; appellate court finds there is no controlling state law on the issues and upholds trial court’s findings on facts.
Courts Reject Tax Affecting and Use of Discounts in Connecticut Buyout Dispute
Trial court’s fair value determination in buyout dispute involving family business withstands appeal, including decision not to tax affect or apply majority and minority discounts; appellate court finds there is no controlling state law on the issues and upholds trial court’s findings on facts.
Should business valuation be more sensitive to market pricing?
BVWire—UK has been privy to a number of conversations recently with leaders from valuation professional associations around the globe.
BVU News and Trends November 2019
A monthly roundup of key developments of interest to business valuation experts.
Highlights of 2019 Delaware Valuation Decisions
This year to date has been another active period for valuation cases in the Delaware courts. Six cases are reviewed and the predominant theme is that, in arm’s-length transactions, appraisal value continues to be based primarily on the transaction price rather than on discounted cash flow.
Application of the Cost Approach to Valuing Identifiable Intangible Assets
Join Robert Reilly and Nathan Novak for this engaging webinar on the common types of intangible assets, the most common reasons to value intangible assets, and the generally accepted intangible asset valuation approaches.With a focus on the cost approach methods to value intangible assets, particularly contributory intangible assets, this program will describe the specific procedures for quantifying each of the intangible asset cost component and for identifying and measuring each of the intangible asset obsolescence ...