Global BV News: IPEV updates PE/VC valuation guidelines
International Private Equity and Venture Capital (IPEV), a trade group that sets valuation practices for private funds, has published the 2018 edition of its guidelines.
Appeals Court Upholds Grocery Store Buyout Ruling and Fair Value Determination
Appeals court upholds district court’s buyout order of minority shareholder’s interests in related family businesses (grocery store chain) as well as district court’s fair value determination; district court’s valuation “falls squarely” between trial experts’ valuations, appeals court says.
Lund v. Lund (II)
Appeals court upholds district court’s buyout order of minority shareholder’s interests in related family businesses (grocery store chain) as well as district court’s fair value determination; district court’s valuation “falls squarely” between trial experts’ valuations, appeals court says.
PCAOB updates fair value audit standards
Of interest to valuation specialists who do fair value work, the Public Company Accounting Oversight Board (PCAOB) has adopted a new standard for auditing accounting estimates, including fair value measurements, and amendments regarding specialists.
Feedback wanted on new additions to PE/VC guide
The AICPA has released for comments working drafts of two new case studies from its Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies (PE/VC Guide).
Takeaways From the 2018 ASA Advanced BV Conference
A wrap-up of the ASA’s Joint ASA 2018 Advanced Business Valuation and International Appraisers Conference in Anaheim, Calif.
Work File Checklist for Documenting the Fair Value of Contract Liabilities
A practice aid based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangible Valuations (CEIV) credential.
BVU News and Trends January 2019
A monthly roundup of key developments of interest to business valuation experts.
RSM issues white paper on AICPA PE/VC draft guide
A white paper prepared by RSM on the AICPA’s working draft of its PE/VC guide provides summaries of key provisions affecting middle-market entities.
BVU News and Trends December 2018
A monthly roundup of key developments of interest to business valuation experts.
Work File Checklist for the Reconciliation of Intangible Asset Values
A practice aid based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles Valuation (CEIV) credential.
AICPA issues inventory valuation guidance
The AICPA’s Financial Reporting Executive Committee has issued an early working draft of Inventory Valuation guidance and would like feedback by Feb. 1, 2019.
New study of M&A deals spotlights fairness opinions
A study of about 2,000 M&A deals from 2006 to 2016 suggests that acquirers should pay closer attention to the fairness opinions third-party analysts provide.
Work File Checklist for Discount Rates Applicable to Various Assets
A practice aid based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles Valuation (CEIV) credential.
Saltzer v. Rolka
In buyout dispute, appellate court upholds trial court’s valuation of company, which applies company-specific risk discount related to uncertain extension of company’s key contract but does not deduct value of personal goodwill attributable to remaining members.
Appellate Court Upholds Use of Risk Discount in Fair Value Determination
In buyout dispute, appellate court upholds trial court’s valuation of company, which applies company-specific risk discount related to uncertain extension of company’s key contract but does not deduct value of personal goodwill attributable to remaining members.
Willamette’s Insights looks at fair value
The Fall 2018 issue of Insights from Willamette Management Associates is titled “Thought Leadership in Valuation for Fair Value Measurement Purposes” and is edited by Terry G. Whitehead.
Management pressure on fair values
A new research paper documents several tactics management employs to inflate its fair value measurements based on in-depth interviews of Norwegian audit partners and company valuation specialists.
‘Real-World Market Evidence’ Does Not Support Dissenters’ Damages Claim, Chancery Says
Chancery says plaintiffs proved directors breached fiduciary duties and duty to disclose but failed to prove damages; court rejects plaintiff experts’ DCF analysis, noting problematic projections and beta; “real-world market evidence” shows company was not worth more than deal price.
In re PLX Tech. Stockholders Litig.
Chancery says plaintiffs proved directors breached fiduciary duties and duty to disclose but failed to prove damages; court rejects plaintiff expert's DCF analysis, noting problematic projections and beta; “real-world market evidence” shows company was not worth more than deal price.
Analysis of appraisal rights
An analysis that compares appraisal rights in the U.S., France, and Romania is in the University of Pennsylvania Journal of Business of Law.
Aruba Networks: Should Appraisals Rely on Unaffected Market Price?
Delaware appraisal decisions in recent years have effectively endorsed the concept that the price paid in an arm’s-length transaction is “fair value” when there has been a “robust” sales process. This article examines the “troubling” ruling in which the court based its appraisal solely on the unaffected market price.
Work File Checklist for the Tax Amortization Benefit
A practice aid based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles Valuation (CEIV) credential.
BVU News and Trends October 2018
A monthly roundup of key developments of interest to business valuation experts.
Tennessee no longer mandates Delaware block method to determine fair value
For the longest time, Tennessee case law required trial courts presiding over dissenting shareholder actions to determine fair value by using the Delaware block method. In a recent ruling, the Tennessee Supreme Court struck down the requirement and Tennessee has joined the jurisdictions that allow "more modern" valuation approaches.