BV News and Trends November 2021
A monthly roundup of key developments of interest to business valuation experts.
Article examines brand values, ratios, and multiples
There has been a dramatic shift in the importance of brands in M&A transactions, with the value of customer relations overtaking the brand-value-to-enterprise-value ratio, reveals a new article.
Global BV News: Most finance execs think global BV standards are in conflict
Almost three-quarters (72%) of finance executives around the world believe there are material inconsistencies and/or contradictions between the various business valuation standards currently in use globally.
Global BV News: TAQEEM launches study on the value of camels
The Saudi Authority for Accredited Valuers (TAQEEM) has signed a memorandum of understanding with the Camel Club to develop standards and criteria for evaluating the market value of camels, according to a news release.
Clint Eastwood awarded $6.1 million in right of publicity case
In a default judgment, actor Clint Eastwood has been awarded $6.1 million from a company that falsely claimed Eastwood had endorsed its CBD products.
Free model adjusts ROI distortion from missing intangibles
Intangible assets that are “missing” from corporate balance sheets (see prior coverage) distort performance metrics and generally overstates return on capital.
BV News and Trends September 2021
A monthly roundup of key developments of interest to business valuation experts.
New push to explore realignment of intangible asset disclosures
Long overdue is a re-examination of the reporting and disclosure framework for intangible assets (IA).
Paper examines vanishing $10 billion of Sprint’s brand value
Prior to being acquired by T-Mobile in April 2020, Sprint had a brand with a value of $8 billion to $12 billion, according to all the major rankings of the most valuable brands.
Pro golfer values analyzed in Duff & Phelps/Kroll study
Everyone who plays golf knows how confounding the game is.
BV News and Trends May 2021
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends April 2021
Business valuation news from a global perspective.
BVU News and Trends March 2021
A monthly roundup of key developments of interest to business valuation experts.
Data breaches threaten brand values, says study
A recent study from Infosys and Interbrand analyzes the maximum risk of brand value loss in case of data breaches.
Global BV News: Kohli scores again with top celebrity brand value in India
Virat Kohli, captain of the India national cricket team, has topped the powerful celebrity brand list of Duff & Phelps for the fourth year in a row, according to its Celebrity Brand Valuation Study 2020: “Embracing the New Normal.”
Fiat Chrysler brand portfolio valued using 1% royalty rate
The portfolio of Fiat Chrysler brands is worth EUR 10.4 billion based on a preliminary valuation using an 1% average royalty rate, according to a white paper from MARKABLES.
Global BVU News and Trends January 2021
Business valuation news from a global perspective.
Coca-Cola Co. v. Comm'r
Coca-Cola had been applying a transfer pricing method called the 10-50-50 since it entered into a closing agreement with the IRS in 198, covering the years 1987 to 1995. Coca-Cola had consistently followed that transfer pricing method; the IRS had audited Coca-Cola annually and “signed off” on that transfer pricing method for over a decade. Upon examination of Coca-Cola’s tax returns for 2007 to 2009, the IRS determined that Coca-Cola’s transfer pricing methodology did not reflect arm’s-length norms because it overcompensated the supply point and undercompensated Coca-Cola. The IRS reallocated income between Coca-Cola and its supply points employing the comparable profits method (CPM) pursuant to Reg. Sec. 1.482-5. The IRS increased Coca-Cola’s taxable income by over $9 billion assessing over $3 billion in additional taxes!
2020’s Most Important Transfer Pricing Case—Coca-Cola
Coca-Cola had been applying a transfer pricing method called the 10-50-50 since it entered into a closing agreement with the IRS in 1986, covering the years 1987 to 1995. Coca-Cola had consistently followed that transfer pricing method; the IRS had audited Coca-Cola annually and “signed off” on that transfer pricing method for over a decade. Upon examination of Coca-Cola’s tax returns for 2007 to 2009, the IRS determined that Coca-Cola’s transfer pricing methodology did not reflect arm’s-length norms because it overcompensated the supply point and undercompensated Coca-Cola. The IRS reallocated income between Coca-Cola and its supply points employing the comparable profits method (CPM) pursuant to Reg. Sec. 1.482-5. The IRS increased Coca-Cola’s taxable income by over $9 billion assessing over $3 billion in additional taxes!
Global BV News: Global intangible asset value hits all-time high
Total intangible asset value has risen to an all-time high of $65.7 trillion, representing 54% of overall listed global value, according to the 2020 Global Intangible Finance Tracker (GIFT) study from Brand Finance.
BVU News and Trends October 2020
A monthly roundup of key developments of interest to business valuation experts.
Cash-starved localities may inflate ad valorem tax valuations
The pandemic has hit local governments hard financially, and they may look to ad valorem taxes on industrial and commercial properties to replenish their coffers.
Global BVU News and Trends February 2020
Regulators, Standard-Setters, VPOsIASB eyes plan to reintroduce goodwill amortizationAs the FASB is doing in the U.S., the International Accounting Standards Board is also exploring whether to reintroduce goodwill amortization. The IASB plans to release a Discussion Paper in early 2020 (February, we hear) for a 180-day comment period to weigh stakeholder interest in amending IFRS 3, Business Combinations, and IAS 36, Impairment of Assets.In conjunction with a recent meeting of the trustees ...
The Evolving Landscape of Intellectual Property That Impacts Valuation
A growing number of developments in the landscape of IP creation and commercialization are impacting IP valuations, or have the potential to do so.
Global intangibles lost 8% in value this year
Business valuers recognise that intangibles present individual ‘facts and circumstances’ challenges.