A Channel Analysis Is Key When Valuing a Fast-Food Restaurant
There has been a seismic shift in the operations of limited-service restaurants since the pandemic—and there’s no sign of reverting. Channels of revenue have been upended. Therefore, an analysis along these lines is important when valuing these entities, advises an expert in this space.
Global BVU News and Trends February 2024
Business valuation news from a global perspective.
Valuation Approaches and Methods—Which Do I Use, When, and Why
The inclusion or exclusion of a specific valuation approach or method can often change a business’s value by more than 10%. So, regardless of whether you are a listed user of a valuation, a CPA/appraiser providing an opinion of value, or are reviewing a valuation for reasonableness, how do you know which valuation approaches and methods should be used, when they are (not) applicable, how to weight those used/applicable, and, most importantly, why?
The CEIV Is Gone But the MPF Will Endure—Here’s an Example
The Certified in Entity and Intangible Valuations (CEIV) credential has been discontinued, but the Mandatory Performance Framework (MPF) will continue to be used. In fact, a revision is expected to make it more streamlined. Here are its guidelines for documenting management projections that are worthy of repurposing.
BV News and Trends November 2023
A monthly roundup of key developments of interest to business valuation experts.
What It’s Worth: Valuing Jewelry Stores
November 2023 PDF (113 pages)
BVR (editor)
Business Valuation Resources, LLC
New Book Offers Template for Assessing ESG Impact on Firm Value
Based on some case studies, a new book includes a template that summarizes steps in assessing whether ESG factors are material enough to integrate into a valuation. The book is Valuation and Sustainability—A Guide to Include Environmental, Social, and Governance Data in Business Valuation, edited by Dejan Glavas (ESSCA, School of Management, Boulogne-Billancourt, France), who also wrote several chapters.
Private Equity Roll Up of Professional Practices Valuation Considerations
This webinar transcript focuses on private equity roll-up acquisitions of professional practices and the possible effect of these transactions on business valuation.
Firms with better ESG ratings yield higher returns, per Kroll study
Companies with better environmental, social, and governance (ESG) ratings generally outperformed those with lower ratings over the 2013-to-2021 period, according to Kroll’s new ESG and Global Investor Returns Study.
Adjusting WACC for ESG: ±100 basis points proposed
When assessing environmental, social, and governance (ESG) factors on valuation, unless there is an impact to cash flow, risk, or growth, ESG has no effect on business value.
New book on ESG and BV
Valuation and Sustainability—A Guide to Include Environmental, Social, and Governance Data in Business Valuation is a new book edited by Dejan Glavas (ESSCA, School of Management, Boulogne-Billancourt, France), who also wrote several chapters.
Valuers Are Now Spending More Time ‘on Everything’
A panel discussion during the Global Town Hall: State of the Global Markets and Their Effect on Business Valuation event talked about having to dig more into income statement line items, perform more sensitivity analyses, request multiple forecasts, change Excel models, and more.
Advanced Topics and Case Studies When Valuing Family Limited Partnerships and LLCs
As professional methodology has advanced and tax court cases have confirmed, employing analytical techniques to value family limited partnerships/LLCs using the income and market approaches allow appraisers to determine an accurate value objectively. Certain types of partnerships may be considered complicated. This webinar will focus on valuing more complex FLPs using case studies. Mr. Johnson will present empirical data that support the use of these objective appraisal methods and share his opinion on current issues ...
Damodaran Continues His Explosive Remarks About ESG
At the ASA Spring Fair Value Conference in New York City on May 4, we did not expect to hear any glowing words about the environmental, social, and governance (ESG) movement from Professor Aswath Damodaran (New York University Stern School of Business). In his blog, he has been very vocal in his strong criticisms of ESG as a “weapon of mass distraction” and a “gravy train” for consultants, investment managers, scoring/ratings providers, and those pushing for more disclosures.
A Look Back: Including ESG in Valuation Models
Quantified the impact of environmental, social, and governance (ESG) factors and measuring their effects is not a new phenomenon. Thanks to the BVResearch Pro platform, here are two ways experts have done this before.
BVU News and Trends April 2023
A monthly roundup of key developments of interest to business valuation experts.
Financial Expert Guide for Family Law Judges and Attorneys, National Edition
April 2023 PDF, Softcover (413 pages)
John Tatlock, Kevin Yeanoplos, Ron Seigneur
Business Valuation Resources, LLC
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 ...
New case involves dispute over company-specific risk
In a Minnesota shareholder buyout matter, the two opposing valuation experts disagreed over the risk associated with customer concentration.
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
Global BV News and Trends March 2023
Business valuation news from a global perspective.
Damodaran to give critical perspective of ESG
Never one to mince words, Aswath Damodaran (New York University Stern School of Business) called it “the most overhyped, oversold concept in the history of business.”
Tax returns as a source of historical data
The vast majority (91%) of valuation experts say federal tax returns are crucial or very important sources of historical financial data.
Is Expected Inflation the Best Long-term Sustainable Growth Rate?
When using the income approach to value a business, selecting a sustainable long-term growth rate is a necessary input into the valuation model, one that can have a material effect on the value of the business. The business valuation literature has provided little guidance for estimating and understanding sustainable long-term growth rates. Apart from relying on macroeconomic indicators and historical industry averages, appraisers have few options for selecting sustainable long-term growth rates and are often ...
From the Editor
Sustainable growth is one of the key inputs in the income approach.