BVU News and Trends October 2020
A monthly roundup of key developments of interest to business valuation experts.
How COVID-19 Is Impacting the IRS and Valuation Audits
Still reeling from the effects of the government shutdown and budget cutbacks, the pandemic has dealt another blow to the IRS that has affected how the agency selects and reviews tax returns that include valuations. A former IRS manager who dealt with valuations at the agency gives some interesting insights.
Key Issues in Valuing Owner Operated Small Businesses
Owner-operated business must be considered in a different framework than many other types of business. Everything from hypothetical transaction (asset sale versus equity interest) to financial objectives (minimize taxable income versus maximize shareholder value) must be considered from a different perspective. Join David Coffman as he discusses rate of return and personal goodwill through this unique lens.
BVU News and Trends August 2020
A monthly roundup of key developments of interest to business valuation experts.
IRS deals with triple whammy as it reviews valuations
The government shutdown, budget cutbacks—and now the pandemic—have impacted the IRS and how it selects and reviews tax returns that include valuations.
MoneySoft BV software now integrated with DealStats
The new version of the MoneySoft Business Valuation Specialist software now allows users to import data from BVR’s DealStats database of private- and public-company transaction comparables.
BVU News and Trends July 2020
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends July 2020
Business valuation news from a global perspective.
Reminder: Take our economics trivia quiz
In case you missed it last week, we have a short quiz for nonsubscribers of BVR’s Economic Outlook Update (EOU) to test your economic IQ.
Calculations of value are admissible in divorce, Alabama appeals court confirms
About two years ago, in Rohling v. Rohling, an Alabama appeals court upheld a trial court’s decision to admit into evidence a qualified expert’s estimate about the value of the owner spouse’s business based on a calculation engagement.
Take our economics trivia quiz
In today’s environment, an understanding of the economy is more crucial than ever in valuations.
BVU News and Trends June 2020
A monthly roundup of key developments of interest to business valuation experts.
The CFNAI plunged to -16.74 in April
The Chicago Fed’s National Activity Index (CFNAI) came in at -16.74 in April, down from a revised -4.97 in March (see chart below).
SOS: Pepperdine Private Capital Markets Project needs funding
Some appraisers feel that using public market data when estimating the cost of capital for a private company requires too many assumptions and adjustments to convert data from actively traded stocks into proxies for private-company valuation.
A Revisit of ‘Known or Knowable’ and Subsequent Events in the COVID-19 World
The authors have a recurring client for whom they perform an annual valuation as of December 31. They give a best practice suggestion as to how to address the coronavirus in their valuation report. The article includes a COVID-19 timeline they developed.
A Veteran Valuer’s Guidance on COVID-19 and the ‘Soul’ of a Business
An interview with Robert Schlegel, FASA, MCBA (Houlihan Valuation Advisors), in which he gives his perspectives on our current economic environment and how that affects the business valuation community.
Fifty percent of high street retailers could fail by August, say Alvarez & Marsal
Business valuers have stood their corners against changes in valuation methods based on economic crises.
March EOU tracks beginning of tough financial times
The Leading Economic Index (LEI) decreased 6.7% in March, the largest monthly decline in the 60-year history of the index, according to the March 2020 Economic Outlook Update (EOU).
Hitchner shares his COVID-19 timeline
When was COVID-19 known or knowable for valuation purposes?
AICPA issues a Subsequent Event Toolkit
In a prior issue of BVWire, we presented one valuation expert’s way of dealing with the coronavirus in valuation reports before it was known or knowable.
More resources for business valuers completing valuation engagements now
To help support the inquiries we’ve been receiving from our customers about how to address the coronavirus in the valuations they are working on, BVR has created a new COVID-19 business valuation resource website where we offer links to current news, past articles and webinars, third-party articles, and more to help BVWire—UK readers.
Shift more emphasis to numerator, panel says
During this time of crisis, the numerator of the valuation equation needs much more attention than before, said a panel during yesterday’s free BVR webinar.
Follow-up comments: How to deal with COVID-19 for Dec. 31, 2019, valuations
Harold Martin (Keiter) has the following additional comments regarding the appraisal discussed in last week’s BVWire article dealing with a valuation date of Dec. 31, 2019, and whether the impact of the coronavirus should be considered a subsequent event.
How to deal with COVID-19 for Dec. 31, 2019, valuations
Several BVWire readers have asked about how to treat the COVID-19 issue when you have a valuation date of Dec. 31, 2019.
Free BVR webinar on business valuation during coronavirus offered 7 April
BVR will present Extreme Uncertainty: How Valuation Experts Should Respond to Today’s Volatility and Risk, a free webinar, on 7 April.