Letter to the Editor: Improving Our Work Product (and Professional Image) … One Review at a Time
A letter to the editor from Clint Cronkite (Cronkite & Kissell LLC). Business valuation professionals are expected to provide unbiased professional analyses, opinions, and conclusions but also be supportive of our client’s goals—a schism that has led to skepticism about the neutrality and quality of our work product.
CEIV quality control being finalized
The American Society of Appraisers (ASA) says that “important steps” have been taken to finalize the quality monitoring (QM) requirements for the Certified in Entity and Intangible Valuations (CEIV) credential.
Global BV News: Naming rights values in the Premier League
The potential market rates for U.K. stadium naming rights grew to £135.6m in 2017, an increase of over 80% on the 2013 market rates of £74.6m, according to a study by Duff & Phelps.
Zyla Gives Update on Fair Value Developments
We attended the Southeast Chapter of Business Appraisers (SECBA) conference in Atlanta last month where Mark Zyla (Acuitas) talked about how the area of fair value is serving as a focal point for the profession to unify itself.
Work File Checklist for Selecting Guideline Comps
Documentation requirements based on the Mandatory Performance Framework (MPF) for the Certified in Entity and Intangibles (CEIV) credential.
Work File Checklist for Documenting Valuation Multiples
The Mandatory Performance Framework (MPF) sets out requirements regarding how a valuation expert should adequately document his or her work and thought processes when engaged in a fair value for financial reporting assignment. It was specifically designed ...
From the Chair
The Tax Cuts And Jobs Act became effective on January 1, 2018 and will likely impact the value of various entities and intangible assets. This may necessitate changes in our practice application to value these entities and assets.
Appeals Court Upholds Insolvency Rulings in Transfer Liability Case
Appeals court upholds Tax Court’s transfer liability rulings; there was constructive fraud in that dividend payments to appellant were not compensation for services rendered but were part of a series of transfers leading to company’s insolvency.
Work File Checklist for Growth Rate and Terminal Value
The requirements under the new credential for fair value for financial reporting should be considered best practices to anyone doing this type of work. Holders of the Certified in Entity and Intangible Valuations (CEIV) credential will have a work file re ...
New Jersey Court’s Inadequate Goodwill Ruling Begets Rebuke and Remand
In a case about lawyer’s equity partner interest in a large firm, appellate court finds prior ruling was grossly deficient; expert testimony suggested the owner spouse’s compensation matched his earning capacity and there was no additional goodwill compon ...
Muszynski v. Muszynski
Trial court adopts valuations of wife’s expert for husband’s 50% interest in waste industry company, finding expert used methods that properly separated out husband’s personal goodwill; court also accepts inclusion of identifiable intangibles shown to belong to company; appeals court affirms.
Court Validates Expert’s Method for Separating Out Owner’s Personal Goodwill
Trial court adopts valuations of wife’s expert for husband’s 50% interest in waste industry company, finding expert used methods that properly separated out husband’s personal goodwill; court also accepts inclusion of identifiable intangibles shown to belong to company; appeals court affirms.
From the Chair
I enjoyed seeing many of you at the Advanced Business Valuation Conference in Houston. Despite hurricane Harvey’s efforts to slow us down, the conference was a great all-around success.
Work File Checklist for Fair Value Overview Under New Regulations
Anyone doing fair value for financial reporting should comply with the requirements under the new CEIV credential whether they hold the credential or not. CEIV holders will have a work file reviewed within the first year they receive the credential and th ...
Slutsky v. Slutsky
In a case about lawyer’s equity partner interest in a large firm, appellate court finds prior ruling was grossly deficient; expert testimony suggested the owner spouse’s compensation matched his earning capacity and there was no additional goodwill compon ...
New Jersey Court’s Inadequate Goodwill Ruling Begets Rebuke and Remand
In a case about lawyer’s equity partner interest in a large firm, appellate court finds prior ruling was grossly deficient; expert testimony suggested the owner spouse’s compensation matched his earning capacity and there was no additional goodwill compon ...
Kardash v. Commissioner (III)
Appeals court upholds Tax Court’s transfer liability rulings; there was constructive fraud in that dividend payments to appellant were not compensation for services rendered but were part of a series of transfers leading to company’s insolvency.
Appeals Court Upholds Insolvency Rulings in Transfer Liability Case
Appeals court upholds Tax Court’s transfer liability rulings; there was constructive fraud in that dividend payments to appellant were not compensation for services rendered but were part of a series of transfers leading to company’s insolvency.
Work File Checklist for Discount Rates Under New Fair Value Regulations
Under the new requirements for fair value for financial reporting, valuation experts will be expected to have a certain amount of documentation in their work files. For holders of the new CEIV credential, a work file will be reviewed within the first year ...
CUT Method Prevails in Amazon’s Transfer Pricing War With IRS
In transfer pricing case, Tax Court says Amazon more accurately determined buy-in and cost-sharing payments by using CUT method to value separately three types of intangible assets; IRS’s DCF analysis results in improper enterprise valuation, court says ...
Global trademark values for wineries
The brand is the single most important intangible asset in wine businesses, accounting for 17.5% of enterprise value on average, according to latest data.
Certified in Entity and Intangible Valuations (CEIV): Advancing the Quality of Valuations
The field of business and intangible asset valuations has many of the elements of a profession. In recent years, comments by the SEC expressed concern about the structure of the business valuation profession and the lack of sufficient quality assurance procedures. As a result of these concerns, the Mandatory Performance Framework ("MPF") and Application of the Mandatory Performance Framework ("AMPF") documents were released in January 2017 to provide guidance including minimum performance standards and documentation ...
New fair value rules and performance standards highlight ASA event
New fair value regulations and the Mandatory Performance Framework (MPF) apply to everyone, not just holders of the new CEIV credential.
AICPA issues its first wave of CEIV credentials
The American Institute of CPAs (AICPA) has doled out its first batch of certifications for the new Certified in Entity and Intangible Valuation™ (CEIV™) credential for individuals doing fair value measurements.
CUT Method Prevails in Amazon’s Transfer Pricing War With IRS
In transfer pricing case, Tax Court says Amazon more accurately determined buy-in and cost-sharing payments by using CUT method to value separately three types of intangible assets; IRS’s DCF analysis results in improper enterprise valuation, court says.