What do KPMG and BDO have to say about current valuation and forecasting approaches?
COVID-19 dominates a lot of the discussion in the latest edition of KPMG’s 3Q2020 International Valuation Newsletter (IVN), though, as editors Johannes Post and Rolf Langenegger note, it ‘is not the only issue.’ BVWire—UK readers looking for a good summary of the effects the pandemic has had on UK and global markets should turn here, even though the effects on private companies, the LSE, and other markets are now familiar to everyone.
What factors contribute to inconsistent business valuation multiples?
Three professors at the Leipzig Graduate School of Management reviewed 1,149 recent private equity cross-border transactions to determine the consistency of the business valuation metrics.
25 Tips on Dealing With COVID-19 From the NACVA Conference
COVID-19 was a hot topic of discussion in a number of the sessions at the NACVA and the CTI’s 2020 Business Valuation and Financial Litigation Super Conference, which was held online over five full days (June 15-19).
Masterclass in Normalizing Compensation
Three nationally known experts will explain how to determine reasonable compensation amounts. The principal author of the Job Aid, Mike Gregory, will explain the “IRS Job Aid on Reasonable Compensation” and share case studies with many tips and traps. One of the foremost national experts on reasonable compensation, Stephen Kirkland, will share insights and sources to help determine reasonable compensation for your clients. Paul Hamann will show how easy it is to use RCReports to ...
New enhancements made to DealStats transaction database
DealStats (formerly Pratt’s Stats), the state-of-the-art platform for private- and public-company transaction comparables, has made some enhancements.
Pandemic, ESOP Woes, Fair Value, Crypto, and Fraud at NYSSCPA Conference
The 2020 conference season is underway, and Business Valuation Update was on the scene—virtually, of course—for the New York State Society of CPAs Business Valuation/Litigation Services Conference webcast live from New York City May 18.
BVU News and Trends July 2020
A monthly roundup of key developments of interest to business valuation experts.
Fair Value Measurements Amid the Covid-19 Crisis
Reporting entities in recent years generally benefited from a growing economy, which may have allowed auditors to gain comfort with fair value measurements for financial reporting purposes with relatively less documentation. The disruption to global economic activity and financial markets suggest that a business as usual approach may no longer apply to these same fair value measurements. Consequently, reporting entities can expect fair value measurements to receive greater scrutiny from their auditors and a heighted ...
BV needs ‘outside-the-box’ solutions to document COVID-19-era business valuations
COVID-19 has substantially affected the financial and economic characteristics of privately held and publicly traded businesses.
Anderson v. A & R Spraying & Trucking, Inc.
In buyout dispute over closely held corporation, State Supreme Court upholds trial court’s value determination based on income-based analyses parties’ experts presented but adjusting for inconsistencies in each opinion; asset approach was inappropriate where company would continue to operate.
Calculating Fair Value, Court Uses Experts’ Income Analyses but Adjusts for Inconsistencies
In buyout dispute over closely held corporation, State Supreme Court upholds trial court’s value determination based on income-based analyses parties’ experts presented but adjusting for inconsistencies in each opinion; asset approach was inappropriate where company would continue to operate.
BVU News and Trends June 2020
A monthly roundup of key developments of interest to business valuation experts.
Alternate Valuation Methods in the Era of COVID-19
The authors address the impact of COVID-19 on the capital markets and offer alternate valuation methods that should be considered in these turbulent times.
Valuing Residential and Commercial Construction Companies
Cash flow seasonality, bid requirements, license particulars, economic forces, and ubiquitous litigation are all hallmarks of the residential and commercial construction industries and all unique factors when appraising a construction company. Join What it’s Worth guide author and expert Pasquale Rafanelli for a full inspection of residential and commercial construction company valuation issues from accounting methods to value drivers. Avoid the common valuation mistakes that appraisers make and learn to answer the one question on ...
Takeaways from the NYSSCPA BV/Litigation conference
Conference season is here but, of course, in virtual form due to the pandemic.
Normalizing Compensation for Closely Held Business Owners Using RCReports (Free Webinar)
Learn how to normalize compensation for owners of closely held businesses using the three IRS approaches outlined in the IRS Job Aid: Reasonable Compensation Job Aid for IRS Valuation Professionals using RCReports Software. Determining reasonable compensation for closely held SMBs is a straightforward process that relies on a basic understanding of the three different approaches for determining reasonable compensation and when and where they apply. Practitioners armed with this knowledge and the proper tools can ...
How to avoid trouble when using transaction databases
Understand your data!
New Epsilon Research, FactSet, and DealStats studies offer valuers first indications of the current trajectory in private-company values
Most valuers sense that small and medium-sized enterprises are less marketable, and less valuable, than they were at the beginning of the year.
Meanwhile, business analysts must be ever more cautious in their selection of listed company comparables
Choosing listed company comparables as a proxy for a small-business valuation has always required a leap of faith.
Is History Repeating Itself? A List of BV Guidance From the 2008 Financial Crisis
Insights from business valuation history can give some degree of help during today’s crisis. Here are some blasts from the past courtesy of the search capabilities of the BVResearch Pro platform.
Put extra scrutiny on market comps, panel advises
The market approach is obviously troublesome now, which makes it even more important to scrutinize your comps, according to a panel that participated in BVR’s second free Town Hall event on the impact of COVID-19 on valuations.
The Comprehensive Guide to the Use and Application of Transaction Databases, Fourth Edition
May 2020 Hardcover, PDF
Alina Niculita
Business Valuation Resources, LLC
Valuation and Covid-19 Update: BVR Townhall and Q&A
In part two of this town hall-style event, Michelle Gallagher, Gary Trugman, Stacy Collins, and Harold Martin talk through key impacts of COVID-19 on valuation issues. From cost of capital to family law to guideline companies, the impact on the inputs, approaches, and the business we value is profoundly felt. Experts who have weathered financial crises before are doing a yeoman’s job of keeping current with the ever-changing information. Send early questions and comments to ...
BVU News and Trends April 2020
A monthly roundup of key developments of interest to business valuation experts.
The Impact of COVID-19 on Restructuring, Insolvency & Impairment
The world of valuation has changed along with everything else. In this panel on the Impact of COVID-19 on Restructuring, Insolvency & Impairment, three experts will discuss the changing environment for valuation assignments. Craig Jacobson, Richard Peil, and Dan Korcyk each bring a unique perspective and will discuss three specific areas where valuation activity might increase due to the virtual shutdown of the U.S. economy. Finally, we will discuss topics related to performing valuations in ...