Trugman talks about his new book at the ASA confab
If you visited the BVR booth at the American Society of Appraisers International Conference in Las Vegas, you would have had the chance to chat with Gary Trugman (Trugman Valuation), who was taking a break from working on the new, sixth edition of his book Understanding Business Valuation.
Gift and Estate Tax Valuation Update
Join Barry Sziklay for important 2021 income and transfer tax valuation cases as well as the valuation aspects of the adequate disclosure regulations required to report a gift for federal transfer tax purposes and start the statute of limitations running. Internal Revenue Code (IRC) Chapter 14 valuations, Special Valuation Rules §§ 2701-2704, will be addressed in a summary fashion given the complexities of the rules required for a valuation to meet the requirements of Chapter ...
Trugman’s sixth edition now available for preorder
The new, sixth edition of Gary Trugman’s Understanding Business Valuation is now available for preorder for an early 2022 release.
Book Review: Business Valuation: An Integrated Theory (BVIT)
Today, there are many fine business valuation textbooks available to the professional business appraiser for guidance and support. The purpose of these publications is to equip the readers with the methodology, techniques and models necessary to produce a credible valuation opinion and report.
State Route 00700, Section 21H v. Bentleyville Garden Inn, Inc. (In re Condemnation by DOT)
The jury verdict was set aside in this Pennsylvania condemnation case for reliance on an incompetent report by the expert witness for the Pennsylvania Department of Transportation. The report did not account for the damages the hotel incurred on the unclaimed property for loss of business due to the condemned property. Additionally, the court decided that a new trial, which the trial court did not allow, should be allowed and remanded for a new trial.
Verdict Based on an Expert’s Incompetent Report Cannot Stand, New Trial Ordered
The jury verdict was set aside in this Pennsylvania condemnation case for reliance on an incompetent report by the expert witness for the Pennsylvania Department of Transportation. The report did not account for the damages the hotel incurred on the unclaimed property for loss of business due to the condemned property. Additionally, the court decided that a new trial, which the trial court did not allow, should be allowed and remanded for a new trial.
Relying on Guideline Public-Company Data in Appraisals of Closely Held Interests
What are the guidelines for using the guideline public-company data in appraisals of closely held interests? Join Rob Schlegel to learn the background and logic for appraisers relying on public-company transaction data, including the advantages and disadvantages. There are a variety of sources for these data, and several examples will be provided as to how these data are used. Winnowing the initial data group and concluding on the best fit given the client conditions imply ...
Value of Coke’s secret formula could end up in Supreme Court
At last week’s New Jersey CPA Society’s Business Valuation and Litigation Services Conference, Barry Sziklay (Friedman LLP) gave an update on the huge battle between Coca-Cola and the IRS over transfer pricing that involves the trademark and secret formula for the soda giant’s iconic beverage.
Damodaran’s strong feelings about ESG
A year ago, Professor Aswath Damodaran (New York University Stern School of Business) called it “the most overhyped, oversold concept in the history of business.”
Asset vs. income approach for valuing goodwill in Tennessee
In Tennessee, personal goodwill is not a marital asset that can be divided between the divorcing parties.
Insights and Intel on the Cannabis Industry
Join Ryan Cram and Ron Seigneur for a lively discussion of the current and emerging landscape for business valuation analysts and other professional advisors to the cannabis sector with a focus on the risks and rewards of being involved in the cannabis industry drawing on over 20 combined years of industry experience working marijuana and hemp/CBD clients throughout the country, both large and small. Explore the unique nuances associated with business and intellectual property appraisal ...
Willamette focuses on tax and transfer pricing
Taxation-related valuation and transfer pricing issues are the focus of summer 2021 Insights from Willamette Management Associates.
Recap of recent BV cases of note
A number of recent cases have emerged that contain various valuation issues.
Cela v. Cela
The Appellate Court (AC) upheld the trial court’s decision to accept the value under the income approach adjusted for the exclusion of personal goodwill. The expert for the wife (business owner) had used the asset approach reasoning that all goodwill was personal. The trial court and the AC rejected that approach.
Appellate Court Upholds Decision to Use Income Approach and Reduce Personal Goodwill
The Appellate Court (AC) upheld the trial court’s decision to accept the value under the income approach adjusted for the exclusion of personal goodwill. The expert for the wife (business owner) had used the asset approach reasoning that all goodwill was personal. The trial court and the AC rejected that approach.
Defining Terms: Forecasts v. Projections—Why Does It Matter?
One area that can trigger some confusion is the difference between the terms “forecast” and “projection.” Some people use them interchangeably, but these are formal terms found in the literature, so they should be used appropriately.
Maginnis v. Maginnis
In this unpublished opinion, the Kentucky Appellate Court remanded the decision as to the value of the husband’s business for, among other things, the Family Court’s failure to consider an apportionment of goodwill between enterprise and personal goodwill. It also remanded for a reconsideration of the maintenance award to the wife since that award is based in part on the value of the business and the income of the husband.
Trial Court Fails to Consider Apportionment of Goodwill in a Marital Dissolution Case
In this unpublished opinion, the Kentucky Appellate Court remanded the decision as to the value of the husband’s business for, among other things, the Family Court’s failure to consider an apportionment of goodwill between enterprise and personal goodwill. It also remanded for a reconsideration of the maintenance award to the wife since that award is based in part on the value of the business and the income of the husband.
Business Combinations and Fair Value for Financial Reporting
Are you confused by business combinations? Join William Kennedy for this engaging session covering GAAP fair value standards and their application in business combinations. Hear a discussion of the nuances of the GAAP fair value standard and history of how it was developed as part of the GAAP-IFRS convergence project. Also learn how the valuation approaches and methods used in fair value assessment differ from valuation approaches used in a fair market value appraisal.
Connecticut Supreme Court clarifies double-counting rule
In a recent decision, the Connecticut Supreme Court clarified this jurisdiction approach to double counting (or double dipping).
Island Light & Power Co. v. Sara Golvinveaux McGinnes 2011 Trust
In this shareholder dissent suit, the one-third shareholder of Island Light & Power Co. (aka BIPCO) dissented to a forced sale of the assets of BIPCO resulting in a liquidation of BIPCO and of the shareholder Trust’s stock. In a resulting bench trial, the court rejected the fair value determinations of the experts for both parties and adopted its own methodology (as is allowed by Rhode Island courts, including its Supreme Court) to determine the fair value of the one-third interest held by the Trust.
Court Adopts its Own Methodology in Determining Fair Value in a Shareholder Dissent Suit
In this shareholder dissent suit in Rhode Island, the one-third shareholder of Island Light & Power Co. (aka BIPCO) dissented to a forced sale of the assets of BIPCO resulting in a liquidation of BIPCO and a liquidation of the shareholder Trust’s stock. In a bench trial resulting from the dissent, the court rejected the fair value determinations of the experts for both parties and adopted its own methodology (as is allowed by Rhode Island courts, including its Supreme Court) to determine the fair value of the one-third interest held by the Trust.
Bitcoin & Digital Assets: The Industry, Valuation, and Forensics
Every day, bitcoin and digital assets seem to become more mainstream for both businesses and investors. Over time, valuation and forensic professionals are bound to encounter clients with digital asset holdings, and they will need to face the unique challenges they create. Experts Mark DiMichael and Jennifer Cohen will provide valuation and forensic accounting professionals with the information they need to help their clients deal with this complex asset class.
Damodaran to teach valuation fundamentals at IMAA
Professor Aswath Damodaran (New York University Stern School of Business) will present a four-day, 12-hour online course on valuation May 25-28 at the Institute for Mergers, Acquisitions and Alliances (IMAA).
Valuing Telehealth Services
Join Todd Zigrang and Jessica L. Bailey-Wheaton for a discussion of the valuation of telehealth services in the healthcare industry. Learn the current telehealth trends and the role of telehealth in the healthcare industry. Gain an understanding of the types of telehealth services typically provided, such as clinical services, management services, and the provision of technology, and how these services may vary by healthcare industry subsector. Get expert guidance on typical valuation approaches as they ...