Global BV News and Trends November 2022
Business valuation news from a global perspective.
Recap of the AAML/BVR National Divorce Conference
It was a happy marriage of divorce attorneys and financial experts who gathered together for the AAML/BVR National Divorce Conference in Las Vegas. The AAML is the American Academy of Matrimonial Lawyers.
The Two Most Prevalent Methods for Solving the Goodwill Conundrum
Remarks from a session at the AAML/BVR National Divorce Conference conducted by veteran valuers Jay Fishman (Financial Research Associates) and Ken Pia (Marcum) who were joined by attorney Thomas J. Sasser (Sasser, Cestero & Roy).
Ang Offers SSBV Members More Evidence of the Lack of a Size Effect
Clifford Ang (Compass Lexecon), who offered an impassioned plea to a large group from the UK’s Society of Shares and Business Valuers (SSBV), has become one of the leading proponents of eliminating or minimizing the traditional size premia. Ang has written a number of articles on the size effect and has a new book, Applied Valuation, due out early next year.
Early-bird discount ends today for NACVA’s conference December 14-16
There is a $100 discount if you register by November 30 to attend the NACVA “super” conference that will be December 14-16 in-person from two locations: Park City, Utah, and Fort Lauderdale, Fla.
Global BV News: Results of the first student BV Challenge in Canada
The CBV Institute has announced the winners of its inaugural Business Valuation Challenge, a national case competition for undergraduate students from top business schools across Canada.
Valuations of German and European banks
The decline in market capitalizations coupled with a positive earnings outlook has led to record levels of the implied cost of equity of 14.8% for European banks and 17.8% for German banks, according to the latest edition of the Alvarez & Marsal’s “Germany Valuation Insights.”
Huge turnout for the AICPA FVS conference
At 800 attendees, the AICPA & CIMA Forensic and Valuation Services Conference in Las Vegas was the largest event we’ve been to this year.
Embracing Subjectivity: The Illusion of Precision in BV
Nothing keeps a valuator up at night more than “squishy numbers.” Everyday someone comes up with another “objective quantitative method” that eliminates subjectivity. But guess what? Many of the methods are actually increasing the subjectivity exponentially and creating the illusion of precision. In this rip roaring session, we will shine a light on all of the subjective areas of the valuation process and learn to embrace it.
Inflation showcased in lead-off session at the AICPA FVS conference
As this issue rolls off the (virtual) presses, BVWire is attending the AICPA & CIMA Forensic and Valuation Services Conference.
Reminder: IRS has job openings for BV experts
The agency is looking to hire experienced business appraisers for 14 open positions at various U.S. locations.
Early-bird discount ends soon for NACVA’s conference December 14-16
There is a $100 discount if you register by November 30 to attend the NACVA “super” conference that will be December 14-16 in-person from two locations: Park City, Utah, and Fort Lauderdale, Fla.
Global BV News: KPMG releases cost of capital study
KPMG has published its “Cost of Capital Study 2022” that addresses the impact of high inflation on company valuations.
OECD releases final fiscal valuation guidance for crypto-assets
The Organization for Economic Cooperation and Development (OECD) has published the final Crypto-Asset Reporting Framework (CARF), which provides for the automatic exchange of information between countries on crypto-assets.
Embracing the Hockey Stick: Alternative Approaches to Formulating and Assessing Projections
The question of projections may be one of the most challenging elements of a business or intellectual property appraisal. Most business appraisers will be placed in a position of assessing projections, including projections another appraiser provided. Join Michael Blake for an exploration of the quantitative and empirical methodologies for creating and/or validating projections. As a result of this class, you will gain exposure to potentially new tools to help make your projections more robust and ...
Tips for Developing Your Economic Overview
Understanding all of the elements that go into valuing your business can seem like an overwhelming task. But A Field Guide to Business Valuation has insights to make it less of a challenge. With this post, we focus on Chapter 6.
First-ever survey of young BVers gives rare insights
Preliminary results of a new survey confirm that most BV practitioners were not made aware of the profession in their early years.
Sessions we’re eyeing for next week’s AICPA FVS conference
BVWire will be at the AICPA & CIMA Forensic and Valuation Services Conference November 14-16, which will be live from the Wynn Las Vegas and Encore.
NACVA’s December conference has an á la carte option
You can pick just one session—or as many as you like—from the next NACVA “super” conference that will be December 14-16 in-person from two locations: Park City, Utah, and Fort Lauderdale, Fla.
Global BV News: Industry multiples in Europe decrease in 2Q22
Almost all sectors/industry groups presented in a recent Kroll report observed a decrease in their EV/EBITDA multiples during the second quarter of 2022.
In re Navidea Biopharmaceuticals Litig.
A pharmaceuticals company sued its former CEO for, among other things, breach of contract and for a declaratory judgment establishing the contractual rights and obligations of the parties. This resulted in counterclaims by the former CEO, Michael Goldberg. Goldberg submitted for testimony of damages Terry Lee Orr, CPA. In this matter, the company sought to exclude Orr’s testimony and, absent his exclusion, to present their own expert, William F. Murray, CPA, as a rebuttal expert. Goldberg sought to exclude the testimony of Murray. The court excluded portions of Orr’s testimony and denied the exclusion of Murray as a rebuttal expert.
U.S. District Court Partially Excludes Witness in Securities Value Case and Allows Rebuttal Witness
A pharmaceuticals company sued its former CEO for, among other things, breach of contract and for a declaratory judgment establishing the contractual rights and obligations of the parties. This resulted in counterclaims by the former CEO, Michael Goldberg. Goldberg submitted for testimony of damages Terry Lee Orr, CPA. In this matter, the company sought to exclude Orr’s testimony and, absent his exclusion, to present their own expert, William F. Murray, CPA, as a rebuttal expert. Goldberg sought to exclude the testimony of Murray. The court excluded portions of Orr’s testimony and denied the exclusion of Murray as a rebuttal expert.
Inflation, volatility trigger increase in ERP, per Kroll
Kroll has increased its recommended U.S. equity risk premium (ERP) from 5.5% to 6.0% when developing USD-denominated discount rates as of Oct. 18, 2022.
Customer relations is the top intangible, per MARKABLES study
Customer relations is the most important of all intangible assets, accounting for 25% of enterprise value, according to a new study from MARKABLES.
AICPA FVS conference offers a ‘select 7’ option
Almost 60 sessions are offered at the upcoming AICPA & CIMA Forensic and Valuation Services Conference November 14-16 in Las Vegas live and online.