BV profession needs a stronger connection to research
The business valuation profession needs to be more attuned to academic finance research, according to a letter to the editor of the ASA’s Business Valuation Review by Victor E. Jarosiewicz (Quid Valorem LLC).
Damodaran Looks at Intangibles—and Tosses Some Dynamite
It is always a pleasure to listen to Aswath Damodaran (Stern School of Business, New York University) talk about valuation. BVR invited him to do a webinar on intangibles, and he didn’t disappoint, giving his perspective and dropping a few bombshells in his inimitable style.
Valuing What You Cannot See: Intangible Assets
Accounting has historically done a poor job dealing with intangible assets, and, as the economy has transitioned away from a manufacturing-dominated 20th century to the technology- and services-focused economy of the 21st century, that failure has become more apparent. The resulting debate among accountants about how to bring intangibles onto the books has spilled over into valuation practice, and many appraisers and analysts are wrong, in my view, letting the accounting debate affect how they ...
BV News and Trends December 2023
A monthly roundup of key developments of interest to business valuation experts.
Data as a Commercial Asset: Valuation Techniques and Analytical Insights (A BVR Workshop)
The importance of data as a commercial asset means that the financial value of data is becoming difficult to ignore. Increasingly, credible methodologies for data valuation will have to be performed for commercial litigation, financial reporting, tax reporting, and even transaction support. Mike Blake will walk through data valuation methodologies as well as analytical points that help distinguish the relative values of different data sets. Attendees will gain a high level of knowledge of data ...
BV News and Trends November 2023
A monthly roundup of key developments of interest to business valuation experts.
What’s the ‘Barbie buzz’ worth?
Having a product prominently displayed in a hit movie has value—but how much?
Damodaran values Birkenstock’s intangibles
He doesn’t care for its sandals, but Professor Aswath Damodaran (New York University Stern School of Business) has taken a great interest in valuing the intangibles of footwear company Birkenstock.
BV-real estate gap regarding property rights can skew valuation
At BVR’s exhibit hall booth at the 2023 American Society of Appraisers International Conference in New Orleans, we had a conversation with Barry Cunningham (Property Tax Research LLC) about potential pitfalls when valuing real estate-centric entities (RECEs).
BVResearch Pro adds to its archive 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.
Property Rights and the Real Estate Appraiser
This article provides the business appraiser with a better understanding of how real estate appraisers think about property rights and the distinctions they make between fee simple and leased fee estates. It also discusses two areas where a property rights issue could lead to understating intangible assets in real estate centric entities. Two brief case studies are used to demonstrate where problems can arise and how to resolve them. This is a primer to foster ...
A Difference of Opinions—Using the Right Tools for the Market Approach
This course will be a hands-on exercise in valuing a small owner-operated business using the market approach. Two appraisers will walk through the valuation of a business with $5 million to $10 million in revenue using the same fundamental financial information but different valuation tools. The results are meant to highlight the differences in value based on a selected market approach and the use of different databases. The training will use multiples derived from private ...
NFT Valuation: What You Need To Know
In 2021, nonfungible token (NFT) prices drastically increased and then dropped substantially just over year later. These digital assets can be difficult to grasp, but they now play a role in personal investment portfolios and on company balance sheets. As a result, valuations of digital assets will be needed for issues such as divorce litigation, estate valuations, bankruptcy litigation, fair value measurements, and more. This presentation will demystify these investments and teach attendees how the ...
Valuing Real Estate Centered Entities in 2023
A review of the problems business appraisers and analysts see in companies holding substantial amounts of real estate, often necessary to run the business and produce cash flow. Discussion will focus on understanding and incorporating real property appraisal conclusions including an intangible asset and how to test those findings with business valuation evidence ...
BV News and Trends September 2022
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends August 2022
A monthly roundup of key developments of interest to business valuation experts.
Secret witnesses may appear in overvaluation case
In a New Jersey class action, plaintiff shareholders of publicly held Ascena Retail Group alleged that the company misrepresented the value of its goodwill and trade names to inflate the stock price artificially.
Paper investigates patent valuation methods
A new paper investigates the underlying knowledge structure and the evolution of patent valuation methods under two main topics: quantitative and qualitative.
In re Ascena Retail Grp., Inc. Sec. Litig.
In this securities putative class action litigation, plaintiff shareholders alleged that the defendants (Ascena) misrepresented the value of Ascena’s goodwill and trade names in order to inflate Ascena’s stock price artificially. In June 2017, Ascena announced an impairment charge to those assets of $1.3 billion “causing Ascena's already-declining share price to fall precipitously. Ascena ultimately declared Chapter 11 bankruptcy in July 2020.” The defendants moved to dismiss for failure to plead material misrepresentation or scienter or both. The court granted the motion to dismiss but allowed the plaintiffs to amend their complaint.
New Jersey U.S. District Court Dismisses Plaintiffs’ Complaint That Public Company Defendant Overvalued Its Goodwill
In this securities putative class action litigation, plaintiff shareholders alleged that the defendants (Ascena) misrepresented the value of Ascena’s goodwill and trade names in order to inflate Ascena’s stock price artificially. In June 2017, Ascena announced an impairment charge to those assets of $1.3 billion “causing Ascena's already-declining share price to fall precipitously. Ascena ultimately declared Chapter 11 bankruptcy in July 2020.” The defendants moved to dismiss for failure to plead material misrepresentation or scienter or both. The court granted the motion to dismiss but allowed the plaintiffs to amend their complaint.
Human capital and valuation explored in new paper
Everyone knows the phrase “our people are our most valuable asset,” but just how does human capital generate value for organizations?
ABCs of Intangible Asset Valuation
Do you know the ABCs of intangible asset valuation? Join Nene Glenn Gianfala to dive into the Approaches used to value intangible assets. Next, tackle the Background, importance, and hot topics of intangible assets. Lastly, bring it all together with a Case study on how to determine the value of goodwill and other intangible assets in a business combination. Get solid with the fundamentals, so you can confidently tackle your next IP engagement.
Details start to emerge about the Prince estate valuation
One of the tricky assets to value in the Prince estate was the rock star’s name and likeness.
Prince estate and IRS settle valuation dispute
The IRS and Comerica Bank and Trust, the administrator of the estate of rock star Prince, have agreed to settle their dispute and agree on an estate value of $156.4 million, according to settlement documents submitted in the case.
BV News and Trends October 2021
A monthly roundup of key developments of interest to business valuation experts.