Blast from the past on forecasting
During a recent BVR webinar, Josh Shilts (Shilts CPA PLLC) mentioned a helpful article that appeared in the Harvard Business Review (HBR), “How to Choose the Right Forecasting Technique.”
Forecasting: Removing Rose Colored Glasses
Projections are commonly relied on for business valuations, lost profits analyses, reorganization plans, and a host of other projects within litigation. Using forensic accounting analysis, the speaker will address “rose-colored” projections and how to work with them. Expert Josh Shilts will discuss how to increase confidence levels of projections using macro and micro market data along with statistical analysis.
Top Expert Answers for Today’s Tough BV Questions
In BVR’s recent webinar, Power Panel: Live Expert Answers for Today’s Tough BV Questions, experts Jay E. Fishman, Michelle Gallagher, Ken Pia, and Jeffrey Tarbell covered various hot topics that affect the business valuation profession. These questions ranged from the basics, such as “What will 2021 look like?” to “What are your thoughts on the current state of the ESOP litigation environment particularly with the new administration coming in?” Here, we summarize five of the questions and answers. For more information, be sure to check out the complete recording and transcript of the session.
Adjusting the Income Approach Highlights AICPA FVS Conference Panel
A panel at the AICPA FVS Conference fielded a barrage of audience questions about how to help make sure the income approach captures the impacts of the current environment. The panel, moderated by Jim Hitchner (Financial Valuation Advisors), included Lisa Cribben (Wipfli LLP), Harold Martin (Keiter), and Mark Zyla (Zyla Valuation Advisors LLC).
BVU News and Trends January 2021
A monthly roundup of key developments of interest to business valuation experts.
Global BV News: PFI featured in latest OIV Journal
The latest edition of the journal of the Organismo Italiano di Valutazione, the valuation standards-setter in Italy, is now available if you click here.
Little-Known Resource Can Help Bolster Support for Projections
Projections used in business valuation have always been subject to scrutiny—and now more than ever. During the recent ASA International Conference, it was pointed out that many valuation analysts may not know of a resource that can be used to help support their assessment of projections.
In re Kinser Group LLC
In § 506(a) hotel valuations, bankruptcy court finds creditor’s experienced expert premised appraisals on “fundamentally flawed” base assumption that hotels would be sold on the valuation date, where debtor’s plan said debtor would retain and operate hotels; court said replacement value applied.
Expert’s Failure to Review Debtor’s Reorganization Plan Results in ‘Defective’ Hotel Appraisals
In § 506(a) hotel valuations, bankruptcy court finds creditor’s experienced expert premised appraisals on “fundamentally flawed” base assumption that hotels would be sold on the valuation date, where debtor’s plan said debtor would retain and operate hotels; court said replacement value applied.
Interesting poll results in latest Hitchner pub
The latest issue of Hardball With Hitchner includes the results of some recent polls that reveal what valuation practitioners are doing to reflect the impact of COVID-19 in valuations.
Global BVU News and Trends November 2020
Business valuation news from a global perspective.
Solvency opinion based on management projections faces Daubert challenge
In a bankruptcy-cum-Daubert case that turned on solvency, a court recently rejected both parties’ claims that the opposing financial expert testimony was inadmissible.
Hitchner debuts monthly Hardball publication
James Hitchner (Valuation Products and Services) has released the first issue of Hardball With Hitchner.
This Deceptively Simple Tool Can Help Clients Forecast Cash Flow
Valuation and forensics expert Darrell Dorrell (Financial Forensics) offers an Excel spreadsheet you can give clients to help them keep a close eye on their cash flow during these tough times.
Amid Market Data Volatility, the Best Option Is a More Rigorous DCF
A panel of global valuation experts who conducted a recent webinar co-sponsored by RICS, and also NACVA, the ASA, GACVA, and CBVI gives their comments.
Reopen or Not? A Method for Analyzing a COVID-19-Shuttered Firm
A case study of using external yardstick data to help a client decide whether to hang in there and reopen his business or stay closed for good. This is not a full-blown valuation engagement, but rather a very high-level analysis designed to provide management with an objective basis to help make critical decisions in today’s unpredictable environment.
‘Overstated’ projections sink plaintiff’s fair value determination
Earlier this year, a New York trial court presiding over a buyout dispute featuring an online wholesaler of faucets, sinks, and fixtures rebuffed the departing shareholder’s valuation.
Leigh Miller says valuation ‘ranges’ still raise questions with auditors, even during COVID-19
Using multiple forecast scenarios has been a commonly practiced approach to market volatility—and many UK business valuers are now saying that it should be used more widely.
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).
Flaws in North Carolina Court’s Appraisal of Reynolds American
The wrong valuation date, a faulty reliance on other cases and the disregard of projections highlight the court’s opinion in a shareholder dissent case involving two tobacco giants.
In a crunch, court adopts company’s DCF model as fair value indicator
In a statutory appraisal action prompted by the 2016 buyout of minority shareholders by the controller of a private company, the Delaware Court of Chancery recently found there was no meaningful market-based evidence of fair value and neither expert opinion, based on standard valuation methods, was “wholly reliable.”
Financial Triage: Five One-Page Tools for Appraisers That Add Value During Transition Or Crisis
There are five simple, but powerful tools, financial experts can use to help their clients manage precious cash, increase diminished revenues, and concentrate people resources during business crises. The tools, i.e. RCF, DRC, CCO, BPM, and SMM and have been deployed for nearly two decades in businesses throughout North America ranging from sole proprietorships to Fortune 500 companies. They are ideally suited to businesses needing immediate cash and revenue enhancement supplemented by sustainable actions. Join ...
One way to analyze a COVID-19-shuttered firm
If you haven’t already, you will probably get this question from a client: “The pandemic forced my business to shut down."
In re Body Transit
Court finds creditor’s interest in debtor’s property is “inconsequential” and says a valuation of debtor’s fitness club must account for dismal state of fitness industry due to COVID-19 shutdown; debtor’s projections related to reorganization plan are too optimistic given economic uncertainty.
Court Finds Valuation of Debtor Entity Must Account for COVID-19 Effect on Industry
Court finds creditor’s interest in debtor’s property is “inconsequential” and says a valuation of debtor’s fitness club must account for dismal state of fitness industry due to COVID-19 shutdown; debtor’s projections related to reorganization plan are too optimistic given economic uncertainty.