BV News and Trends December 2023
A monthly roundup of key developments of interest to business valuation experts.
Hitchner busts more BV myths
Does the fair market value standard assume a financial buyer, without synergistic benefits?
Something from Nothing? Valuing Synergies in Acquisitions and Litigation
Acquisitions (and the prices paid for them) are often rationalized on the basis that the combined enterprise will be more valuable than the two businesses were separately. For both the business appraiser tasked with quantifying the potential synergy value in a business combination and the management team tasked with achieving those synergies, verifying and quantifying this potential value creates a unique set of challenges. In Something From Nothing? Valuing Synergies in Acquisitions and Litigation, expert ...
Estate and Gift: The Complete Valuation Package (A BVR Workshop)
Unwrap all things estate and gift in this engaging session with Marissa Turrell and Carla Glass. This presentation will assume a basic understanding of business valuation, of both operating companies and holding companies, and focus on specifics related to valuing ownership interests for estate and gift purposes. Some topics will focus on issues that arise only in valuation for gift and estate purposes, such as seminal court cases on the matter, Chapter 14, working with ...
15 Cautionary Areas to Review in ESOP Valuations
Business valuation practitioners perform private-company equity appraisals for many applications including gift/estate tax planning, transaction opinions, and financial reporting; yet ESOP valuation assignments present complex challenges. Not only is the purpose of the appraisal unique, but the particular client, an ESOP trustee (acting as a fiduciary), also has many ESOP-specific disclosures and requirements. A well-developed ESOP valuation report may not simply achieve the appraisal prescription set forth in Revenue Ruling 59-60 or USPAP compliance. Join ...
The Strategic Premium: An Inside Look at M&A Prices
Synergistic/strategic value should not be combined into one level in the typical chart that shows levels of value. Some buyers pay a “strategic premium” that propels strategic value to the top of the value chart and well in excess of the expected synergistic value. The author uses real-world examples to illustrate this concept.
Panel challenges traditional levels of value chart at the 20th Advanced Business Valuation Conference
The 20th annual American Society of Appraisers (ASA) Advanced Business Valuation Conference was a huge success, despite attendance of only about 325 compared to pre-Sept. 11 projections of 450 attende ...
State of the art reference for all discounts and premiums issues
by Rand M. Curtiss, FIBA, MCBA, ASA, ASA, Loveman-Curtiss, Inc. Business Valuation Discounts and Premiums , Shannon P. Pratt, John Wiley & Sons, September 2001. Available from Business V ...
The oxymoron of "control, marketable"
When we use the terms "marketable" or "nonmarketable" in business appraisal, we typically are referring to minority interests. Yet, some people apply the expression "marketable" or "nonmarketable" to controlling interests, where the distinction seems meaningless.