What a year! This is a recap of developments in the business valuation profession under the shroud of COVID-19 including the latest thinking in methodologies, changes in regulations, new and updated resources, and practice-building ideas.
Few industries have been as harshly impacted by COVID-19 as the restaurant industry. Join Lynton Kotzin for an overview of the state of the restaurant industry and what the future looks like for different restaurant types. Learn the reasonableness test, value drivers, and proper application of the approaches during these volatile times. Be ready to advise and value your restaurant clients.
Business valuations prepared for divorce purposes can be much more challenging than valuations can be for other purposes because the rules differ among jurisdictions. There are no clear valuation guidelines for divorce in most states. For example, there’s no specific definition of value in state statutes governing divorce. Also, divorce courts exercise a great deal of discretion—even if there is an abundance of judicial precedent (which can be confusing and contradictory).
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 ...
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 ...
The Coronavirus Pandemic has created perhaps the most unusual economic downturn at least in our lifetimes and likely in the past 100 years. For Americans, the Pandemic stopped in its tracks one of the most explosive economic growth and expansion in many years, if ever. Overnight almost, businesses that were economically sound and growing were turned into distressed and impaired businesses. Jim Alerding will analyze the valuation perspective needed to value a distressed or impaired ...
Many valuation analysts immediately reject the asset-based approach for operating businesses, but this is a problem, say Robert Reilly and Weston Kirk, who are both with Willamette Management Associates. The method is rejected too often because analysts are not familiar enough with the asset approach or they have misconceptions about when (and when not) to apply it.
Valuing an adult cabaret business may make your colleagues laugh, but, with unique operating characteristics, entertainer relationships, and significant risks and contingencies, there are many concerns to give experts pause. Join David Shindel and Rod Burkert for a look at valuation rules of thumb and a discussion of the current operating environment. Learn the common reasons for valuations: eminent domain, estate and succession planning, damage claims, employment issues, and tax litigation. Learn about the various ...
A look back at some of the developments in the BV profession in 2019, including important court rulings on tax affecting pass-through entities, a possible upending to the goodwill model, a new cost of capital platform gaining traction, and advances in fair value for financial reporting.
A monthly roundup of key developments of interest to business valuation experts.
The latest news in the business valuation profession—plus complete coverage of recent court decisions—is provided in two new guides from BVR.
In commemoration of the 50th anniversary of Willamette Management Associates, the firm has put out a special edition of its Insights publication.
The new tax law, lively debates, new guidance, a strong protest, and a simpler approach to estimating cost of capital were just some of the highlights in the business valuation profession during 2018.
The Tax Cuts and Jobs Act includes special tax breaks for a number of industries, including the winery sector. This adds to the special differences experts need to consider when valuing these entities.
We attended many of the sessions at the AICPA’s 2017 Forensic and Valuation Services conference in Las Vegas along with over 1,000 attendees and found no shortage of tips, ideas, and advice.
It was another eventful year for the business valuation profession, and here’s a wrap-up of notable developments of 2017.
Book Review: Understanding Business Valuation: A Practical Guide to Valuing Small to Medium Sized Businesses, 5th Edition
A valuation expert reviews the newest version of one of the leading business valuation texts, written by Gary Trugman.
In addition to revisions to existing material and examples, there’s new material on valuing stock options, preferred stock, debt, and startup ventures.
The conference sessions were an excellent mix of theory and practice—ideas that you can use in your practice right away.
The Delaware Supreme Court recently overturned a 2016 ruling by the Delaware Court of Chancery that arrived at fair value by weighting the results of three valuation techniques equally. The high court's Chief Justice Strine, who once headed the Chancery, found this approach was problematic and used the decision to provide valuation advice to his successor, Chancellor Bouchard, who had overseen the appraisal proceeding.
Appraisers have to consider each of the valuation approaches, but the income approach is the only way to value a solar company, says a valuation expert in the industry.
A general option-based approach to estimating the discount for lack of marketability is offered. It is general enough to capture maturity, volatility, hedging availability, and investor skill, as well as other important factors. The model is shown to contain several option-based models as special cases. The model also contains two weighting variables that provide valuation professionals much needed flexibility in addressing the unique challenges of each nonmarketable valuation assignment. Selected prior empirical results are reinterpreted ...
Federal district court denies Daubert challenge to plaintiff’s lost profits expert, finding his reliance on optimistic management projections and comparable companies were better suited for cross-examination rather than exclusion.
I am highly troubled by several recent circumstances. You are familiar with Gross (BV Update has discussed it at length). It is clear to anyone with a modicum of financial background that ...
This report concludes our coverage of the Nov. 15-17 AICPA Business Valuation Conference. For summaries of other presentations and a list of audiotapes available, see BVU December, 1998, pp. 1-4.