BV News and Trends April 2024
A monthly roundup of key developments of interest to business valuation experts.
Is Your Subject Business Still Feeling the Effects of COVID-19?
The pandemic is over, but the symptoms may linger for a long time. For valuation analysts, the concern is whether the businesses they are appraising will be impacted over the long term—an impact that could be positive or negative. An example is the limited-service restaurant business, such as fast-food, pizza, coffee shops, and the like.
Valuers need to examine the lingering effects of COVID-19
The pandemic is over but not for some businesses that continue to feel the effects—and this impacts valuation.
SBA lending data added to Vertical IQ
The Vertical IQ industry research platform has added key data sets of Small Business Administration (SBA) lending trends and industry performance insights.
BV News and Trends January 2024
A monthly roundup of key developments of interest to business valuation experts.
Several industry reports of note
Some valuation firms and practices that have specialties in various sectors put out some interesting industry-specific reports, and they are free.
The 2023 Cannabis Reset: A Redux of 2019?
As we roll through 2023, getting well past what many are calling the post-COVID-19 pandemic era, the cannabis industry appears to be hitting a major reset button. Inflationary trends continue near a 40-year high with no sign of a quick retreat, legislative reforms for the industry have stalled, interest rates and the cost of capital continue to be significant challenges in the sector, and labor and supply-chain disruptions also continue in some jurisdictions.
BV News and Trends September 2023
A monthly roundup of key developments of interest to business valuation experts.
Chancery Court Determines Value of Shares by Applying Average of GPCM and DCF Methodologies
In a long and complex opinion, the Delaware Court of Chancery determined the value per share of stock in a former stockholder’s appraisal action. The per-share value was reached by ascribing equal weight to adjusted versions of the comparable companies analysis (GPCM) the stockholder advanced and the discounted cash flow analysis the company advanced. The other methodologies were rejected. The use of the GPCM represented the first use of that method in some years.
HBK Master Fund L.P. v. Pivotal Software, Inc.
In a long and complex opinion, the Delaware Court of Chancery determined the value per share of stock in a former stockholder’s appraisal action. The per-share value was reached by ascribing equal weight to adjusted versions of the comparable companies analysis (GPCM) the stockholder advanced and the discounted cash flow analysis the company advanced. The other methodologies were rejected. The use of the GPCM represented the first use of that method in some years.
BV News and Trends July 2023
A monthly roundup of key developments of interest to business valuation experts.
Private-sector companies optimistic, per McKinsey survey
Consulting firm McKinsey has some very useful economic and industry reports, research studies, and regular briefings.
BV News and Trends June 2023
A monthly roundup of key developments of interest to business valuation experts.
New edition of cannabis valuation book now in BVResearch Pro
The second edition of The Cannabis Industry Accounting and Appraisal Guide is now available to subscribers of the BVResearch Pro platform.
Industry Updates for Firms Most Impacted by the Labor Shortage
The accommodation and food service sectors are especially feeling the pain of the current labor shortage, which can cause ripple effects on a valuation. Here are some recent updates for various firms in these sectors courtesy of the Vertical IQ industry research platform.
Global BVU News and Trends May 2023
Business valuation news from a global perspective.
BVU News and Trends April 2023
A monthly roundup of key developments of interest to business valuation experts.
Using Regression Analysis in Business Valuation
As valuation analysts, we often analyze how one or more variables explain the behavior of another variable such as revenues or trends in market multiples. We are also tasked with analyzing trends in data over time to be used as a basis for a forecast of future expected results. A tool that helps us analyze the relationships between variables is linear regression. Linear regression models can be useful tools in analyzing relationships between economic and ...
A Model for Forecasting a Multiple-Location, Growing Business
Veteran valuation expert Gary Trugman (Trugman Valuation) had an engagement that involved a business that operated a franchise with multiple locations—and was required to open a lot more. This article shows in detail how he did the forecasting.
Valuation Expert Gets Caught Up in a Plagiarism Nightmare
A valuation expert in a divorce case was discredited over some material in his report that was copied from outside sources without attribution. With the proliferation of data and research on the web, it is easy to inadvertently use something and then forget to add the attribution.
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
Free report on public-company multiples
Salvidio & Partners has developed a quarterly research report that provides multiples for global operating public companies by industry.
BV News and Trends February 2023
A monthly roundup of key developments of interest to business valuation experts.
SaaS valuation multiples see dramatic decrease
While the software-as-a-service (SaaS) industry is poised for significant growth, revenue multiples are projected at a three-year low, averaging a prepandemic level of about 5.5%, according to a report from FirstPageSage.
Dental practices take top spot in industry research on Vertical IQ
For 2022, the most popular industry profile on the Vertical IQ industry research platform was dental practices, based on number of user visits.