Appraiser Uses Direct Way to Estimate Private-Company Cost of Equity
One appraiser, after 25 years and over 1,000 valuations of small owner-operated businesses, says that these firms bear no relation to public companies, so why look to the public markets for data when estimating cost of capital? Here’s the method he uses, which looks directly at the private capital markets and does not require any expensive resources.
Additional Takeaways From the 2021 ASA International Conference
Interesting sessions covering risk-free rates, equity risk premia, expert testimony, appraisal reviews, cannabis valuations, and more from the American Society of Appraisers’ International Conference, held in Las Vegas.
Unique Pitfalls in Valuing a Diagnostic Imaging Center
Some advice from Douglas Smith (Phase 4 Radiology Business Strategies LLC), whose entire practice is dedicated to the diagnostic imaging space. He is not an accredited valuation expert but is called in by appraisers as a third-party expert to perform analyses and forecasts for these entities.
Mercer examines appraisal review
After a two-month break from his blog, veteran valuer Chris Mercer (Mercer Capital) has started a series of thoughtful posts focusing on appraisal review, a process he deems “essential.”
Stout Risius Ross, LLC v. Aspen Specialty Ins. Co.
Stout Risius Ross LLC asked for a declaratory judgment to require Aspen Specialty Insurance Co. to defend Stout Risius Ross in a lawsuit brought against it by its former client, Wilmington Trust, in an ESOP matter. Stout Risius Ross performed a valuation for an ESOP transaction that the court later criticized in that matter (Brundle). After being sued by Wilmington Trust, Stout Risius Ross filed a claim with Aspen, which was denied by Aspen, citing the “prior knowledge” clause. The court denied Stout Risius Ross’ motion for declaratory judgment and did not allow Stout Risius Ross to amend its motion.
U.S. District Court Dismisses Accounting Firm’s Plea to Require Insurance Company to Defend a Lawsuit Against It
Stout Risius Ross LLC asked for a declaratory judgment to require Aspen Specialty Insurance Co. to defend Stout Risius Ross in a lawsuit brought against it by its former client, Wilmington Trust, in an ESOP matter. Stout Risius Ross performed a valuation for an ESOP transaction that the court later criticized in that matter (Brundle). After being sued by Wilmington Trust, Stout Risius Ross filed a claim with Aspen, which was denied by Aspen, citing the “prior knowledge” clause. The court denied Stout Risius Ross’ motion for declaratory judgment and did not allow Stout Risius Ross to amend its motion.
Trugman’s Understanding Business Valuation has hit the stands!
The PDF version of the new sixth edition of Understanding Business Valuation (UBV6) has been published and is now available.
Valuation Lessons Learned From the Gaming Industry
No matter what type of firm you are valuing, there are several lessons to be learned from the gaming industry. Several industry experts from different markets—Las Vegas, Colorado, and Illinois—shared some fascinating insights into the business of gambling including how these firms operate and how they’re recovering from the pandemic.
BV News and Trends February 2022
A monthly roundup of key developments of interest to business valuation experts.
Vertical IQ Enhances Its Industry Research Platform
Audience Q&As from a webinar on the Vertical IQ industry research platform. The addition of behind-the-paywall industry news from Lexis/Nexis will enhance the platform’s industry news feature.
Business Valuation Update Yearbook, 2022 Edition
January 2022 PDF (454 pages)
BVR (editor)
Business Valuation Resources, LLC
BV News and Trends December 2021
A monthly roundup of key developments of interest to business valuation experts.
Damodaran on the CEO mismatch
Assessing management is a key part of the valuation analysis of a subject company.
Pandemic’s boost to gaming industry margins may linger
When we attended the ASA conference in Las Vegas in October, one thing we noticed was that the level of service in the hotel/casino was not what it once was.
Poll: Most business valuers are generalists
During a recent webinar, the audience was asked: Do you specialize within a particular industry?
Strong LEI performance continues, reports BVR’s EOU
In October 2021, the U.S. Leading Economic Index (LEI) rose 0.9%, to 118.3 points, reports the Economic Outlook Update (EOU), published by Business Valuation Resources (BVR).
‘Author’s Notes’ highlight Trugman’s new book
BVWire has been getting a sneak peek at some of the revised chapters in the new, sixth edition of Understanding Business Valuation by Gary Trugman (Trugman Valuation).
Trugman reveals the ‘easiest trap’ in a valuation engagement
BVWire has been getting a sneak peek at some of the revised chapters in the new, sixth edition of Understanding Business Valuation by Gary Trugman (Trugman Valuation).
Vertical IQ industry research platform to add news from Lexis/Nexis
Behind-the-paywall industry news from Lexis/Nexis will be added to the Vertical IQ platform that provides industry research for business valuations.
Up Your Industry Analysis: How Vertical IQ Can Improve Your Valuation Report (FREE WEBINAR)
Join the co-founder and CEO of Vertical IQ, Bobby Martin, who will share how industry intelligence can help you have more value-added discussions with the business owners you advise along with valuation expert Jim Ewart. By leveraging industry-specific content in the business valuation process, you will increase new client percentages and strengthen existing relationships. Learn the best practices for using industry intelligence to go beyond the basic requirements of business valuations.
Reminder: Preorder Trugman’s sixth edition
Understanding Business Valuation by Gary Trugman (Trugman Valuation) has been the go-to book for real-world examples on how to apply valuation theory and complex topics.
What Business Valuers Need to Know and What to Do if Audited by the IRS with 25 Golden Suggestions
The IRS has recently undertaken some major initiatives in business valuation. Many of these relate to estate and gift tax and examination functions in the “Small Business Self Employed” and the “Large Business and International” divisions associated with BV. Michael Gregory examines those initiatives and guides analysts through successful negotiations with the IRS. Subscribers will learn 25 “golden rules” to help in resolving issues with the IRS.
ASA conference hits the jackpot in Vegas
About 600 attendees converged—both on-site and virtually—for the American Society of Appraisers’ International Conference in Las Vegas October 24-26.
Update on the pandemic’s impact on the gaming industry
While at the ASA International Conference in Las Vegas, we reached out to industry research provider Vertical IQ to give us an update on the impact of the pandemic on the gaming industry.
Good News: Key Research on Private Cost of Capital Is Back
On the brink of ending its long run, the Private Capital Markets Project from Pepperdine University has secured funding to continue its ongoing survey of expected rates of return of providers in the private capital market.