Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
What’s New in BV Courses and Credentialing: An Update From the ‘Big Five’ Societies
Perhaps it’s the easing of the heat and the flush of new fall colors, the memory of chalk dust and brand new books, but September may strike even the more “advanced” professionals as the back-to-school month. Now is the time to regroup from a busy summer ...
ASA Advanced BV Conference: Lots of options (Part 3 of 4)
The American Society of Appraisers’ 23rd Annual Advanced Business Valuation Conference, held at the Marriott River Center in San Antonio, Texas, October 7-9, 2004 covered the gamut of BV topics, from options valuation and FASB’s proposed fair value rules ...
Hitchner v. Damodaran on Inputs to the Cost of Capital
Jim Hitchner (Valuation Products and Services) responds to some severe criticisms Aswath Damodaran (New York University Stern School of Business) made during a BVR webinar about certain inputs to the cost of capital. Hitchner also offers some best practices and a handy tool to use as a reasonableness check on your cost of capital estimate.
An In-Depth Look at the New D&P Valuation Handbook
The SBBI Valuation Yearbook from Morningstar Inc. and the Duff & Phelps Risk Premium Report were the two most common resources utilized by valuation professionals for estimating the cost of capital through 2013. In September 2013, Morningstar Inc. announ ...
BVU News and Trends September 2018
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
What Makes a Business Valuation Firm an Attractive Acquisition Target?
For the last several years, it seems as if everyone I talk to in our profession is trying to figure out a growth plan. Talk of growth is not new, of course—all of us have been trying to achieve it for years. In the early years, it came fairly easily: Valu ...
BV News and Trends October 2021
A monthly roundup of key developments of interest to business valuation experts.
Determining a Distressed Debtor Company Discount Rate (Part 2)
The cost of capital represents the required return that must be earned if the value of the entity at issue is to remain unchanged. Cash flows are discounted at the cost of capital to determine the value of the emerging entity. A debtor company’s capital ...
Book Review: The Comprehensive Guide to Economic Damages, Volume 1 and 2, 4th ed.
For many years now, my expert reports on lost profits and other economic damages have referenced the Nancy J. Fannon (Fannon) and Jonathan M. Dunitz (Dunitz) publication as one of the few treatises that provided me with peer-reviewed economic damages guid ...
BVU News and Trends March 2018
A monthly roundup of key developments of interest to business valuation experts.
Using the Valuation Report as a Selling Tool
A business valuation report is the perfect forum for selling the valuation analyst’s conclusion regarding the value of the valuation subject. This is an excerpt from the new sixth edition of Understanding Business Valuation, which has a companion website that includes a good selection of full sample valuation reports.
A Race to the Bottom: Is that Where Business Valuators are Headed?
Financial scandals surround us. Tainted “buy” recommendations; manipulation of earnings; after-hours mutual fund trading; back-dating option grants; pay-to-play; biased fairness opinions—these and other professional abuses are current fodder for the pres ...
Alerding Gives Some Insights Into AI and BV
Be cautious when using artificial intelligence for business valuation work, advises BVLaw editor Jim Alerding (Alerding Consulting). A few examples show that this tool is not yet ready for prime time.
BVU News and Trends April 2020
A monthly roundup of key developments of interest to business valuation experts.
Risky Business: A Generous Helping of Company-Specific Risk
A potential exists for valuation analysts to overestimate the company-specific risk premium when valuing small businesses. For purposes of this discussion, company-specific risk and unsystematic risk are used interchangeably. “Small business” is defined ...
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.
Update on DLOM, Fair Value, PTEs at NYSSCPA BV Confab
The 2017 conference season has started! BVR attended the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) in New York City. As usual, it covered some of the profession’s hottest topics. Committee chair Jeffrey Gibralter ...
Hotel Valuation: Breaking the Rules—But Getting it Right!
This article explains why the dominant method for the appraisal of hotels is contrary to the main methods used for the appraisal of other real estate-centered enterprises (RECEs) and is therefore flawed. Furthermore, this method does not mimic the way hot ...
Court Makes ‘Close Call’ on Complex Valuation of Insider Corporate Guaranties
U.S. Court in Maine excludes expert testimony because, despite his extensive experience and effort, he did not have specific experience valuing personal guarantees.
Tribune Bankruptcy Court Prefers Current Data to Fill Valuation ‘Chasm’
Bankruptcy court declines to confirm competing reorganization plans for billion dollar publishing conglomerate, in part based on flawed valuations from both parties.
In re PLX Tech. Stockholders Litig.
Chancery says plaintiffs proved directors breached fiduciary duties and duty to disclose but failed to prove damages; court rejects plaintiff expert's DCF analysis, noting problematic projections and beta; “real-world market evidence” shows company was not worth more than deal price.