BV News and Trends November 2021
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends October 2021
A monthly roundup of key developments of interest to business valuation experts.
Book Review: Business Valuation: An Integrated Theory (BVIT)
Today, there are many fine business valuation textbooks available to the professional business appraiser for guidance and support. The purpose of these publications is to equip the readers with the methodology, techniques and models necessary to produce a credible valuation opinion and report.
Mercer chimes in on BVR DLOM survey
“Our profession has a long way to go in terms of understanding what DLOMs, or marketability discounts, really are,” concludes Chris Mercer (Mercer Capital) in his analysis of BVR’s 2021 DLOM survey.
Frazier reviews ‘very important’ book on business valuation
A very comprehensive review of an important book is in the Summer 2021 issue of the Business Valuation Review™, published by the American Society of Appraisers.
QMDM increases foothold in DLOM toolbox
Almost a quarter (22%) of valuation analysts polled say they use the quantitative marketability discount model (QMDM) for quantifying a discount for lack of marketability (DLOM).
BV News and Trends June 2021
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends May 2021
A monthly roundup of key developments of interest to business valuation experts.
Mercer addresses court acceptance of the QMDM for DLOM
During a recent BVR webinar, an audience member asked about the track record in court of the quantitative marketability discount model (QMDM) for determining a discount for lack of marketability (DLOM).
Valuing Shareholder Cash Flows
The integrated theory of business valuation provides a conceptual framework for disciplined analysis of valuation questions. Too often, valuation analysts are tempted to view individual components of a valuation assignment on a piecemeal basis. Adhering to the integrated theory helps valuation analysts develop base valuation conclusions, discounts, and premiums that are rooted in a shared perspective of the subject company and the subject ownership interest. In the first webinar of the three-part series, Chris Mercer ...
Today! Third and final part of ‘Integrated Theory’ webinar series
A very special BVR webinar series concludes today with the authors of Business Valuation: An Integrated Theory, Z. Christopher Mercer and Travis W. Harms (both with Mercer Capital).
Mercer and Harms tie BV together into one neat bundle
Business valuation is like one huge jigsaw puzzle, and practitioners can often find themselves focusing too much on the individual pieces.
Today! ‘Integrated Theory’ authors kick off webinar series
A very special BVR webinar series begins today with the authors of Business Valuation: An Integrated Theory, Z. Christopher Mercer and Travis W. Harms (both with Mercer Capital).
NICE Value! How to Deploy the Non-Marketable Investment Company Evaluation Method
When it comes to valuing minority interests in family investment entities such as family limited partnerships, business valuation professionals have not often used the income approach. However, in three recent Tax Court cases, the income approach was prominently featured, and, in one case, it was clearly the deciding factor in the court’s decision. Join William Frazier to learn about the nonmarketable investment company evaluation (NICE) method. Learn its origins, what it doesn’t replace, and how ...
BVU News and Trends December 2020
A monthly roundup of key developments of interest to business valuation experts.
Mercer and Harms release new edition of their Integrated Theory book
BVR is pleased to announce that the new third edition of Business Valuation: An Integrated Theory is now available in its bookstore.
Mercer using a 1% COVID-19 risk premium—for now
Veteran business valuer Chris Mercer (Mercer Capital) was a keynote speaker at the New York State Society of CPAs Business Valuation/Litigation Services Conference, which was held online on May 18.
Weinberg v. Commissioner: Good law, bad economics, or both?
Lawyers often comment that good cases make bad law. As an economist, I have a similar comment: good law often comes from bad economics. By definition, a judge’s opinion is good law.
ASA International Appraisal Conference: Winds of Change Part 2 of 2
The ASA International Appraisal Conference held at the Marriott Waterside Hotel & Marina on July 14-16 in Tampa, Florida was anything but business as usual this year.
Lack of marketability discounts suffer more controversial attacks
The apparently well-meaning Drs. John Kania and Mukesh Bajaj are at it again, espousing discounts for lack of marketability for stocks of closely held companies that are a fraction of those encountered in the real world.
FMV to release its restricted stock study
Bringing Sanity to Marketability Discounts: A New Data Source, Espen Robak and Lance S. Hall , Valuation Strategies , July/August 2001, pp. 6-13, 45-46. Over the years, several approaches h ...
QMDM debate continues
The QMDM and Estimating Required Rates of Return for Restricted Stock , Z. Christopher Mercer, ASA, CFA, Business Valuation Review , June 2001, pp. 12-20. The article summarizes the debate be ...
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 ...
2001 ASA International Appraisal Conference, part 1
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Pa., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that this ...
Engstrom backs his examination of the QMDM
In the March 2001 edition of Shannon Pratts Business Valuation Update , I explained that the Quantitative Marketability Discount Model (QMDM) is heavily influenced by elements of control, s ...