Reminder: Take a survey on tax return data extraction
Is the historical financial information you get from client tax returns in usable form? Do you have to extract it by hand? Do you use an automated solution?
SEC climate proposal is key topic during KPMG panel
At the recent Global Financial Reporting and Valuation Conference, a panel of KPMG leaders shared their knowledge and insights on the evolving landscape regarding environmental, social, and governance (ESG) factors. During this session, audience members were particularly interested in how the SEC climate proposal can impact private companies.
How do you extract tax return data?
BVR is always on the lookout for new offerings that will help practitioners. One area where we see some potential need is in extracting historical financial data from client tax returns.
BVResearch Pro adds another issue of the ASA’s BV Review
Among many other resources, the BVResearch Pro platform contains the full archive of the Business Valuation Review going back to 1982.
BV News and Trends January 2023
A monthly roundup of key developments of interest to business valuation experts.
High ESG scores lower the cost of capital, study finds
A recent paper says there is significant evidence that companies having a higher environmental, social, and governance (ESG) score have a lower cost of capital.
Business Valuation Case Law Yearbook, 2023 Edition
January 2023 PDF, Softcover (195 pages)
BVR (editor)
Business Valuation Resources, LLC
The NICE Method Theory and Application
The Nonmarketable Investment Company Evaluation (NICE) Method, a valuation method under the Income Approach to value, determines the fair market value of noncontrolling equity interests in closely held investment entities such as family limited partnerships.1 In this paper I describe the theory of the method and the mechanics of its application in a valuation model. Recently, I have developed the Excel-based NICE-R Model, which is designed to be a transparent and user-friendly valuation tool.2 Finally ...
Hot Topics at the 2022 VSCPA Forensic and Valuation Conference
It was back to in-person attendance at the 22nd annual Forensic and Valuation Conference hosted by the Virginia State Society of CPAs. Topics included the income approach, effective recruiting, reasonable compensation, guideline transactions, surviving cross-examination, IRS developments, and a “Hardball With Hitchner” session that covered some front-burner issues.
Valuing Assisted Living Facilities
This webinar will cover the basics of valuing assisted living facilities. We will look at valuation methods under each approach – cost, market, and income – and discuss pro’s and con’s of each. Before getting into each method, we will address industry factors and economic conditions pertinent to these valuations, as well as current topics and issues. An example valuation will be reviewed incorporating the methods and conditions discussed.
BV News and Trends November 2022
A monthly roundup of key developments of interest to business valuation experts.
Embracing Subjectivity: The Illusion of Precision in BV
Nothing keeps a valuator up at night more than “squishy numbers.” Everyday someone comes up with another “objective quantitative method” that eliminates subjectivity. But guess what? Many of the methods are actually increasing the subjectivity exponentially and creating the illusion of precision. In this rip roaring session, we will shine a light on all of the subjective areas of the valuation process and learn to embrace it.
Most firms can’t forecast impacts of ESG
A new global survey highlights the difficulty in quantifying the financial impacts of environmental, social, and governance (ESG) factors.
Valuation Considerations in High Inflationary Environments
With inflation at its highest level since the Great Inflation, valuation analysts will have to consider macroeconomic factors that have not been present in the U.S. economy in over 20 years.
Accounting for Inflation in the Income Statement Forecast
An example from an actual engagement that demonstrates the manner in which inflation can impact a valuation.
BV News and Trends October 2022
A monthly roundup of key developments of interest to business valuation experts.
Champions Retreat Golf Founders, LLC v. Comm’r
The Tax Court, on remand from the 11th Circuit, which decided that the taxpayer was entitled to a charitable donation for donation of a conservation easement, now valued that interest to determine the amount of the donation deduction. Both parties presented valuation opinions from expert appraisers. The Tax Court determined that the highest and best use of the property before and after the grant of the easement was the key to the determination of the value of the easement. The Tax Court then analyzed the evidence from the expert appraisals to arrive at a value of the easement.
On Remand, the Tax Court Determines the Value of a Conservation Easement From a Golf Course
The Tax Court, on remand from the 11th Circuit, which decided that the taxpayer was entitled to a charitable donation for donation of a conservation easement, now valued that interest to determine the amount of the donation deduction. Both parties presented valuation opinions from expert appraisers. The Tax Court determined that the highest and best use of the property before and after the grant of the easement was the key to the determination of the value of the easement. The Tax Court then analyzed the evidence from the expert appraisals to arrive at a value of the easement.
Normalizing Owner Compensation + RCReports Case Study
This webinar is for business valuators, business advisors who may be involved in shareholder litigation over compensation and tax advisors who help closely held businesses during IRS audits. This webinar explains the accepted methodologies for normalizing owner compensation in business valuations.
‘ESG Ratings: A Compass Without Direction’
That’s the title of a new paper out of the Stanford Graduate School of Business that examines the concerns over the reliability of the various ratings schemes for environmental, social, and governance (ESG) factors.
A ‘field guide’ to BV just released
Based on all of the questions business owners have asked them over the years, appraisers Casey Karlsen and Seth Webber of BerryDunn have put together a helpful book, A Field Guide to Business Valuation.
Spotlight on the Jewelry Industry: Are Diamonds Still a Girl’s Best Friend?
No business can be valued in a vacuum, and the jewelry industry has undergone significant changes over the last few years. Join Lynton Kotzin for an overview of the current state and evolution of the jewelry industry. Understand the key value drivers, accounting issues, and the proper application of the different valuation approaches during these changing times.
Put ESG impact in numerator, not denominator
Currently, there is no empirical evidence to support including the impact of environment, social, and governance (ESG) factors in the cost of capital, so it should be reflected in the cash flows.
How Judges Compare Competing DCF Analyses
Two valuation experts are far apart in their opinion of value using the income approach. What does the judge focus on when comparing the two analyses?
Feedback wanted on ‘social value’
The Social Value Working Group at the International Valuation Standards Council has released its second paper in a series that examines whether “social value” can be a basis of value, the difference between social value and the social component of ESG, and whether the existing valuation principle of highest and best use can apply to social assets and social value.